THE EFFECT OF AFFECTIVE ORGANIZATIONAL COMMITMENT TOWARDS INNOVATION CAPABILITY AND ITS IMPACT TO JOB PERFORMANCE IN FAMILY BUSINESS

Purpose – the purpose of this research is to find out about the effect of affective organizational commitment towards innovation capability and its impact to job performance in family business. Methodology – the original data was taken through an online questionnaire with 100 respondents who are members of Family Business Community in Universitas Ciputra along with the non-members. The SmartPLS 3.0 Statistics Program was used to test the proposed model. Findings – Result shows that affective organizational commitment significantly affects innovation capability and job performance and innovation capability significantly affects job performance.


INTRODUCTION
Family Business is a common type of businesses in many countries. Few of them are USA, Europe, Indonesia and other Asian Countries. PWC (PricewaterhouseCoopers) stated that family businesses growth in Indonesia has increased from 2016 to 2018 (PWC, 2018). The growth of businesses in Indonesia is 65%. It means that the growth will be aggressive and quick comparing to the global percentage which is only 39%. According to the survey from PWC (2018), Family Business is in healthy condition with the growth at the highest level since 2007. With that growth data, there are a lot of advantages of running Family Businesses. According to BDO (2019), one of the advantages is powerful commitment. Horton (1986) in Sreih and Kassar (2017) stated that Family Businesses tend to be more friendly and warm in working environment be-cause they have a high sense of commitment among its employees. This research relies on the agency theory because this research focuses also on non-family members. Meaning that the concept of the agency theory is to linked the participation of family members and non-family members in family businesses (Sreih and Kassar, 2017).
Organizational commitment is defined as a psychological relationship between an organization and an individual (Yukongdi and Shrestha, 2020). Acosta et al., (2016) and Kmieciak et al., (2012) in Moussa and Arbi (2020) also showed that employee commitment contributes to the innovation capability. According to Meyer and Allen (1991) in Rahman et al., (2018), there are three concepts of commitments: normative commitment, affective commitment, and continuance commitment. Affective commitment points out to the emotional attachment of employee with their identification and involvement within organization (Yiing and Ahmad, 2009). Normative commitment is a responsibility to continue working and stay loyal in organization (Moussa and Arbi, 2020). Continuity commitment refers to employee's commitment based on the costs that employee recognized whether they leave the organization (Yiing and Ahmad, 2009).
Affective commitment is considered as the most effective assessment of organizational commitment (Alniaçik et al., 2013). According to Nadeem (2010) and Yesil and Sozbilir (2013) in Moussa and Arbi (2020), many researches showed that role of commitment can improve individual motivation and performance. Oldham and Da Silva (2013), stated that an employee's creativity and their capability to innovate cannot surface unless they are committed to their work. In this term, they must set their commitment for both family and non-family members in order to execute their innovation ideas.
Innovation can happen if the company has an ability to innovate (Laforet, 2011). Referring to Eddelston et al., (2008) in Sreih and Kassar (2017), that both family and non-family members in Family Business must participate in making a process of innovation in order to develop their innovation capability. Lawson and Samson (2001) in Saunila and Ukko (2012), mentioned that innovation capability is the capability to transform ideas and knowledges continuously to become a new product, process and also new systems for the advantage for company and also stakeholders. Nowadays, developing innovation capability is important in order to prepare a company in the middle of challenging environments (Saunila and Ukko, 2012). Innovative capability influences to the job performance (Alasoini et al., 2007).
The job performance referred to the measurement of working behavior (Colquitt et al., 2017in Nangoy et al., 2020. According to Habeeb (2019), the concept of job performance is considered as the basic thing in orientations of human resource management and managerial management. Khan et al., (2010) in Younis and Sabra (2020), also designated job performance as the quality of employee's working behavior as a result of organizational commitment in order to fulfil the company's goals through finishing their tasks perfectly. Shou et al., (2017) who investigated the relationship among innovation capability, relational resources, and the performance of thirdparty logistic (3PL) industry in China, found out that (1) innovation capability is related positively to job performance of 3PL company (2) innovation capability intervenes fully the correlation between firm performance and relational resources (3) innovation capability is the most important factor for relational resources to have an impact on firm performance. Another previous study done by Sungu et al., (2019) with the purpose to observe why and how organizational commitment affects the job performance. The research finds that there is a positive relationship between affective organizational commitment and job performance. This study also finds that normative organizational commitment positively affects job performance. Previous researches have not comprehensively examined the effect of affective organizational commitment towards innovation capability, and this background is the gap research for this study. Moussa and Arbi (2020) also examined the impact of human resource information system (HRIS) on individual innovation capability in human resource department (HR) of Tunisian companies. This research found out that (1) affective commitment of employee mediates the correlation between the usage of HRIS and individual innovation capability (2) the more employees tied up with the company, the higher positive impact towards the HRIS. Rahman et al., (2018) also investigated the relationship between organizational commitment and organizational factors such as structure, culture, and top management in Bangladeshi service organization. The findings of this research are (1) decentralization influences affective and normative organizational commitment significantly and formalization do not influence significantly on affective organization and negatively influences normative commitment (2) top management support does not influence normative commitment significantly but positively influences affective commitment. Based on the previous explanation, the researcher intends to thoroughly investigate the affective organizational commitment and innovation capability affect the job performance in Family Business.

METHOD
This research type is using quantitative method and the sampling method used in this research is purposive sampling. Purposive sampling is a part of non-probability sampling. Purposive sampling uses sampling methods for selecting individuals based on the researcher's decision. These techniques include sampling of the highest variance, expert sampling and standard sampling of events (Berhnt, 2020).
Because the number of population is undefined, to determine the number of samples, the researcher intended to use calculation method from Hair et al., (2017). The minimum requirement needed for samples are five times the amount of the research indicators and the ratio that is used is 5:1. They also mentioned that the more samples collected, the more accu-rate the result will be. There are 20 indicators in this research, so the sampling size for this research is: 5 x 20 = 100 respondents. Data were analyzed using SEM-PLS.

Research Design
This research will be using the model of analysis as shown below: ,ϭ ,ϯ , Ϯ

Figure 1 Model of Analysis Source: Authors Processed Data, 2020
The targeted population for this research is the people of Family Business Community Universitas Ciputra Surabaya in the academic year of 2019-2 (even semester) and below is the characteristic of of family and non-family members: Respondents are higherranking officers in Family Businesses with a minimum position of supervisor.

Respondents contribute directly in managing Family
Businesses with a minimum of 6 months of employment.
Respondents are higherranking officers in Family Businesses with a minimum 3 years of employment.
Source: Processed Data

Measures
The questionnaire is made in a form Likert Scale. The respondents get the questions and have to answer the situation on a metric scale.

Descriptive Analysis
The data of this research was gathered from 100 respondents who are the members and non-members of family businesses and filled the in the online questionnaires. The questionnaire consisted of 20 indicators statements from 1 independent variable, 1 dependent variable, and 1 intervening variable. All the data were The scale is from strongly disagree until strongly agree. A score 1 indicates the meaning of strongly disagree, meanwhile a score 5 indicates meaning of strongly agree. Affective Organizational Commitment (X) is the independent variable, Innovation Capability (Y) is intervening variable, while job performance (Z) is the dependent variable. Below is the indicator of each variable: Affective organizational commitment points out to the emotional attachment of employee with their identification and involvement within organization (Yiing and Ahmad, 2009).
According to Allen and Meyer (1991) in Sungu et al. (2019) the characteristics of good affective organizational commitment are: 1. Happy to spend work life with this organization 2. To enjoy to discuss about their company with people from outside 3. To feel like they "part of family" in a company 4. To not become as attached to another company easily 5. To feel the organization has a good deal of personal meaning for them 6. To feel they have a strong sense of belonging to their company Innovation Capability (Y) Innovation capability is an ability of an individual to build up a new product along with processes in order to attain a good management performance (Rangone, 1999 in Saunila andUkko 2012) According to Keskin (2006), Panayides (2006), Lind (2007) in Shou et al., (2017) the characteristics of innovation capability are: 1. To try out new ideas frequently 2. To find out a way to do something new 3. To be creative in operation methods 4. To increase the quality of product or service Job Performance (Z) Job performance is the quality of employee's working behavior as a result of organizational commitment in order to fulfil the company's goals through finishing their tasks perfectly (Khan et al., 2010 in Younis and Sabra, 2020).
According to Abramis (1994) in Peiro et al., the characteristics of a good job performance are: 1. Responsible to the job 2. Able to handle the daily task 3. Able to make the right decision for the task 4. Able to perform without making mistakes 5. To do thing done in time 6. To cooperate with others at work 7. To avoid conflicts with others 8. To handle disagreements by discussing personally 9. Barely be absent working 10. Barely come late

Table 2 Variables and Indicators
Source: Processed data processed using SmartPLS 3.0 and the results were equal for both members (50%) and nonmembers (50%) and dominated by male respondents with 55%, the dominating age range was 20 to 25 years old with 44% and dominated by product sector with 62% and mostly dominated by Commanditaire Vennotschap (CV) (55%) To evaluate convergent validity of reflective constructs, researchers consider the outer loadings of the indicators and the Average Variance Extracted (AVE). The data is consider valid if outer loading > 0.7 and (AVE) > 0.5 for each variable. Below is the result of outer loading: There are five indicators that are under the minimum outer loading value and it is considered invalid. Those five indicators are removed because it is under the minimum of outer loading value, 0.7 and the researcher did the second stage outer loading calculation, Based on the first stage of loading factor, there are

Figure 3 The Second Stage PLS Diagram Logarithm
Source: Author's Processed Data, 2020   Table 5 Path Coefficients tional commitment significantly affects job performance in Family Business and H2 is accepted. The third hypothesis, affective organizational commitment towards job performance has T-statistic value 3.317, which is more than the minimum value of T-statistic, 1.96. Thus, innovation capability significantly affects job performance in Family Business and H3 is accepted. Table 6 shows the result numbers of coefficient of determination (R 2 ) value. The dimension value of innovation capability is 0.320 and 0.435 for job performance and considered weak. It means that the dimension of innovation capability could be explained by 0.320 (32%) of this variable and the rest will be explained by the other dimension outside this research, the dimension of job performance could be explained by 0.435 (43.5%) of this variable and the rest will be explained by the other dimension outside this research.
As shown in Table 6 that affective organizational commitment has lack predictive relevance because the value is less than 0 meanwhile, the value of innovation capability and job performance are 0.237 and 0.220 respectively. It means that innovation capability and job performance have accurate predictive relevance to certain construct.  Table 5 shows that all variables have reached the minimum T-statistic value, which is ≥ 1.96, meaning that there is a significant effect among variables in this research, so that all hypotheses are acceptable in this research. It is shown on table 4.14 that affective organizational commitment towards innovation capability has T-statistic value 7.396, which is more than the minimum value of T-statistic, 1.96. Thus, affective organizational commitment significantly affects innovation capability in Family Business and H1 is accepted. The second hypothesis, affective organizational commitment towards job performance has T-statistic value 4.230, which is more than the minimum value of T-statistic, 1.96. Thus, affective organiza-  he value of affective organizational commitment towards innovation capability is 0.471, meaning that it shows large effect sizes between variables meanwhile, the value of affective organizational commitment towards job performance is 0.121, it means that there is a small effect between affective organizational commitment towards job performance. Lastly, the effect size value of innovation capability toward job performance is 0.218, meaning that there are medium effect sizes between innovation capability towards job performance.

DISCUSSION
This research shows that there is a positive significant effect between affective organizational commitment to innovation capability in Family Business. Affective organizational commitment has T-statistic value 7.396 to innovation capability, which is more than the minimum value of T-statistic, 1.96 in path coefficients. It is supported by the previous research done by Moussa and Arbi (2020), many researches showed that role of commitment can improve individual motivation and performance. In this term, in order to execute their innovation ideas, they must set their commitment for both family and non-family members. This result also matches with previous study done by Oldham and Da Silva (2013) that employees creativity and their capability to innovate cannot surface unless they are committed to their work individually and in organization.
This research also shows that there is a positive significant effect between affective organizational commitment to job performance in Family Business. Affective organizational commitment has T-statistic value 4.230 to job performance, which is more than the minimum value of T-sta-tistic, 1.96 in path coefficients. This result matches with the previous study done by Devece et al., (2016), the more employees have a higher organizational commitment, the more efforts showed in job performance. It also supported with the previous study from Moussa and Arbi (2020), the more staff develop their emotional affinity, the more they feel like they are part of a company that needs to achieve every goal given by the company.
This research shows that there is a positive significant effect between innovation capability to job performance in Family Business. Innovation capability has T-statistic value 3.317 to job performance, which is more than the minimum value of T-statistic, 1.96 in path coefficients. This result matches with the previous study done by in Saunila et al., (2014) that innovation capability and job performance are connected to each other. It is supported by previous research done by Bisbe and Otley (2004) that there is a positive relationship between innovation and performance. it means that innovation capability significantly affects the job performance.