From Ownership to Agility: How Psychological Ownership Drives Organizational Performance in a Labor-Intensive Tobacco Manufacturer

Abstract

This study examines the effect of psychological ownership on organizational performance with organizational agility as a mediating variable at PT CGC, a labor-intensive tobacco manufacturer in Malang Regency. The study is grounded in Dynamic Capability Theory, which explains how organizations improve performance by sensing changes, seizing opportunities, and reconfiguring resources adaptively. A quantitative approach was used, involving 60 milling apprentice employees selected from a population of 150 using simple random sampling. Data were collected through questionnaires and analyzed using SmartPLS 3.2.9. The results show that psychological ownership has a positive and significant effect on organizational performance and organizational agility. Organizational agility also has a positive and significant effect on organizational performance and mediates the relationship between psychological ownership and organizational performance. These findings indicate that employees’ sense of ownership can strengthen organizational responsiveness, flexibility, and adaptability, which ultimately improves organizational performance. This study contributes to organizational behavior literature by highlighting organizational agility as a key mechanism linking psychological ownership to organizational performance in a labor-intensive manufacturing context.