Investigation the mediating variable: What is necessary? (case study in management research)

• Published in: International journal of law and management 2017-11, Vol.59 (6), p.1059-1067
• Main Author: Fernandes, Adji Achmad Rinaldo
• Format: Article
• Language: English
• Subjects: Bayesian analysis; Behavior; Economic models; Hypotheses; Intervening variables; Investigations; Job satisfaction; Mediation; Methods; Probability; Random variables; Research methodology; Software; Studies; Variables
• ISSN: 1754-243X; 1754-2448
• DOI: 10.1108/IJLMA-09-2016-0077

Purpose This study aims to more deeply examine the various types of testing mediations and use the comparison test by using test-based mediation Sobel models and Bayesian approach. The purpose of this study are to apply the traditional (using indirect effect) and Sobel test, extend Yuan and MacKinnon (2009) work on Bayesian mediation analysis. Both analysis methods of mediation (Traditional, Sobel Test and Bayesian estimation) should apply in the research of management, by using structural equation modeling (SEM) in a structural model, with one mediation, one exogenous (independent) and one endogenous variable. The meta-analysis approximation has been used to investigate the job satisfaction as a mediation in the relationship between employee competence and performance (endogenous). Design/methodology/approach Data were collected from ten dissertations of students of the Management Doctoral Program at the Brawijaya University from 2009 until 2013; data were analyzed for the mediation variable of job satisfaction (M) in the relationship between employee competence (X) and employee performance (Y) (Muindi and Obonyo, 2015; Olcer, 2015; Sattar et al., 2015; Khan and Ahmed, 2015). A researcher can determine the mediating variable and whether it is complete or partial or if mediation exists in several ways. Findings The results of the above findings using meta-analysis showed that 60% of previous research states that job satisfaction is a partial mediation on relationship competence of the performance, 10% of previous research states that job satisfaction is a full mediation on relationship competence of the performance and 30% stated that job satisfaction is not pemediasi (pemediasi means Mediation variable) on the relationship between competence and performance. This research found that all three approaches provide similar conclusions for ten previous research. Research limitations/implications The findings showed that the Sobel approach and the Bayesian approach provide results that are more sensitive than the traditional approach. Practical implications In my opinion, the rule to investigate the mediation variable should be completed with the conditions (1) q (theta) is not statistically significant, (2) α (alpha) and β (beta) are significant, and (3) q’ (theta) is significant, and increase when M is include as an additional predictor. This condition called partial mediation. Social implications The traditional method is simpler and easy. The method is less