THE EFFECT OF GOOD CORPORATE GOVERNANCE PRINCIPLES ON EMPLOYEE PERFORMANCE AT PT PLN (PERSERO) CENTRAL PART OF JAVA TRANSMISSION UNIT
DOI:
https://doi.org/10.30996/jpap.v12i1.133021Keywords:
State-Owned Enterprises (SOEs), Good Corporate Governance, Employee Performance, Public AdministrationAbstract
Good Corporate Governance (GCG) has been widely acknowledged as an important determinant of employee performance. Nevertheless, empirical studies that examine the specific contribution of each GCG principle, particularly within state-owned enterprises (SOEs) in developing countries, remain relatively scarce. In response to this gap, the present study examines the impact of GCG implementation on employee performance at PT PLN (Persero) Central Java Transmission Unit, focusing on the five fundamental principles of GCG: transparency, independence, accountability, responsibility, and fairness. This research adopts a quantitative approach using multiple linear regression analysis. Data were obtained through questionnaires administered to 75 employees. The validity and reliability testing results confirm that all research instruments satisfy the required standards of adequacy and consistency. The findings reveal that all five independent variables significantly influence employee performance, both partially and simultaneously. These results indicate that improvements in human resource quality within the energy sector can be strategically achieved through the application of sound governance principles. Moreover, this study provides empirical insights that enrich the understanding of governance practices in public organizations and SOEs in developing countries, particularly in high-risk public service sectors, while emphasizing the importance of a micro-level governance perspective in strengthening performance-based governance frameworks.
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