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T
oday, organizations, by their very nature, are In this study, the researchers devel-
designed to process order and routine; they oped and tested a new model of how
individual perception about the work
must continuously develop new products or environment in open-plan offices (in
services that are successful in the market to ensure terms of personal control and envi-
their survival. In fact, innovation and creative out- ronmental distraction) affect creative
outcome through environmental sat-
come are essential for organizational growth and eco- isfaction and social interaction. The
nomic development. The success of a new product partial least squares of structural equa-
depends on many factors including organizational tion model (PLS-SEM) was used to ana-
lyze data. The respondents were 238
strategy, organizational characteristics (such as the employees working as programmers
firm’s organizational climate), the characteristics of and designers in creative mobile indus-
new products, and the process of product develop- tries that are supported by or clustered
in creative multimedia companies in a
ment and product marketing (Dul & Ceylan, 2014; multimedia super corridor in Malaysia.
Landry, 2012; Samani, Rasid, & Sofian, 2014; Ward, The findings showed that personal con-
2004). Moreover, the environment of the workplace trol over the work environment has a
significant effect on individuals’ satisfac-
that stimulates employees’ creative thinking and tion with the work environment, social
creative outcome is normally believed to be help- interaction, and creative outcome. The
ful for the creation of innovative products (Haner, results also indicated that environmen-
tal distraction has no significant effect
2005; Martens, 2011; Montag, Maertz, & Baer, 2012; on creative outcome. Managers, space
Paramitha & Indarti, 2014). designers, and architects can use the
Thus, today, the most important function of the knowledge of this study to give build-
ing users as much control as they need
workplace is to be more supportive due to dynamic to positively affect their work behavior
organizational changes and the rapid growth of and outcome.
technology. All factors within a workspace (such as
innovative communication systems, technological
improvements, e-marketing developments, virtual reality, and alterna-
tive or optional work models) play an important role (Carmeli, Meitar,
& Weisberg, 2006; Oksanen & Ståhle, 2013). To ensure that the work
environment supports these new working styles, flexible workplaces
are often suggested (Becker, 2002; Pejtersen, Allermann, Kristensen, &
P E R F O R M A N C E I M P R O V E M E N T Q U A R T E R L Y , 3 0 ( 1 ) P P. 5 – 2 8
© 2017 International Society for Performance Improvement
Published online in Wiley Online Library (wileyonlinelibrary.com). DOI: 10.1002/piq.21239
Poulsen, 2006; Veitch, Charles, Farley, & Newsham, 2007). Therefore,
the concept of open-plan offices was described as providing at least a
basic solution to many of these notable and current challenges. Open
workspaces are often recommended because they offer interpersonal
access and open communication compared with completely enclosed
private offices (Brennan, Chugh, & Kline, 2002; Hua, 2007; Kim & de
Dear, 2013). Furthermore, open-plan offices are also designed to encour-
age creativity, teamwork, and communication; therefore, the majority of
creative multimedia companies are intended to be based on the open-
plan layout (Arnerlöv & Bengtsson, 2007; Brennan et al., 2002; De Been
& Beijer, 2014; Hua, 2007).
However, despite its advantages, and being one of the most popular
forms of office design, the open-plan office does have its shortcomings.
Compared to private offices, the open-plan office offers a low level of per-
sonal control over the physical work environment, along with presenting
more environmental distractions. Previous studies suggested that per-
sonal control over the workstation is directly related to group efficiency,
teamwork, and collaboration (Hua, 2007; Hua, Loftness, Heerwagen, &
Powell, 2011; Lee & Brand, 2005; Lee & Brand, 2010; Samani, Rasid, &
Sofian, 2015a). It also contributes to environmental satisfaction, comfort,
and other perceptions that are linked to an individual’s health and stress
(Dul & Ceylan, 2010; Huang, Robertson, & Chang, 2004; Lee & Brand,
2005; Lee & Brand, 2010). In fact, the degree to which an individual
believes that it is possible to directly affect his or her personal environ-
ment has a significant effect on perceptions of that environment and
reactions to it (Knight & Haslam, 2010; Lee & Brand, 2005; Luck, 2003).
In open-plan office design, changeable ambient conditions, such
as lighting and room temperature, are fixed to a certain level without
much opportunity to modify and manage them. Moreover, many techni-
cal systems, such as the heating, ventilation, and air conditioning, are
designed for use in private rooms. Most of the
Most of the existing buildings
existing buildings are frequently built to provide
are frequently built to provide
for private offices rather than for open-plan lay-
for private offices rather than for
outs (Rasila & Rothe, 2012). Therefore, having
open-plan layouts.
control over the workspace in open-plan office
arrangements to enhance creative outcome, teamwork, and communica-
tion has proven to be challenging for creative employees. Previous stud-
ies emphasized the importance of office workers’ ability to control their
work environment and to focus on their work without any distractions
from their workspace (Banbury & Berry, 2005; Jahncke, 2012; Roelof-
sen, 2008; Samani, Rasid, & Sofian, 2015b). Personal control over the
workspace can reduce the negative effect of distractions from the work
environment (Huang et al., 2004; Lee & Brand, 2010). However, little
attention has been given to the individual’s perception regarding the
work environment (in terms of personal control over the work environ-
ment and environmental distraction) to affect employees’ work-related
behavior and creative outcome.
Satisfaction Creative
with Work Outcome
Environment
Environmental
Distraction
Sampling
The minimum sample size in models with formative measurement
model (modes B and C) should be equal to 10 times the largest number
of formative indicators used to measure a single construct in the struc-
tural model (Barclay, Higgins, & Thompson, 1995; Hair, Hult, Ringle, &
Sarstedt, 2014). This idea was adopted by the often-cited 10-times rule
(Barclay et al., 1995). This guiding principle in effect says that the minimum
DOI: 10.1002/piq
2002). In addition to inconsistent results, very little research has explored the role of environmental significantly mediates the relationship between
distraction in relation with satisfaction with work environment and creative outcome. environmental distraction and creative outcome.
Past research has studied individual and group satisfaction with work environment and well-being in H10: Satisfaction with the work environment has a
relationship with personal control and distraction from the workspace and the effect of that on job significant and positive effect on creative outcome at
satisfaction and performance (De Been & Beijer, 2014; Harter, Schmidt, & Keyes, 2003; Lee & Brand, 2005; work.
Olson, 2015; Shipton, West, Parkes, Dawson, & Patterson, 2006; Veitch et al., 2007). Prior studies also
examined the effect of mood (both positive and negative) and well-being on individual and group creativity
(Amabile et al., 2005; Fredrickson & Branigan, 2005), but little attention has focused on examining the effect
of satisfaction with work environment on creative outcome.
9
sample size needed should be 10 times the maximum number of arrow-
heads pointing to a latent variable anywhere in the PLS path model (Hair
et al., 2014). Consequently, the minimum sample size needed in this
research was 90 cases (9 × 10 = 90). Furthermore, as suggested by Kline
(2011), “A ‘typical’ sample size in studies where SEM is used is about
‘200 cases’ ” (p. 12). In fact, as Kline (2011) mentioned, analyzing small
samples in structural equation modeling (SEM) is problematic, and one
of the problems can be the low statistical power.
In this study the sample-size determination is based on several rules
including the structural equation modeling (SEM) assessment for deter-
mining the sample size (Hair, Black, Babin, Anderson, & Tatham, 2006;
Kline, 2011) and the sample size table of Krejcie and Morgan (1970). In
fact, according to Saunders, Lewis, and Thornhill (2009), for the majority
of studies in the field of management and business, researchers are pleased
to estimate the population’s characteristics to be within plus or minus 3%
to 5% of its true values. The sample size is calculated based on the Krejcie
and Morgan (1970) formulas for confidence level of 95%. Previous studies
that applied SEM also used the same method to estimate the sample size
(Issa & Mahmood, 2016; Kindy, Shah, & Jusoh, 2016).
The present study focused on creative multimedia companies that
are creating mobile applications such as mobile content delivery sys-
tems, mobile marketing tools, mobile web portals, mobile games, online
and mobile network games, and so on. From the 287 creative multime-
dia companies supported by MSC, 37 companies are in mobile indus-
tries and applications that were registered from 2002 through 2014. The
respondents consisted of programmers and designers involved in creat-
ing and designing mobile games, online games, and mobile platforms and
applications. The number of employees was different in each company,
but the average number of employees for each company was something
between six to 80 programmers and designers (working in creative parts
of the industry). The total number of employees from these 37 compa-
nies was about 600 office employees in the creative section. Thus, based
on the total population for the present study, by referring to the Krejcie
and Morgan (1970) sample-size table, the sample size for the study was
234 employees from mobile industries and application development sup-
ported by MSC Malaysia, clustered in creative multimedia industries.
Results
SEM was used to examine the hypothesized model depicted in Figure 1.
In this study the measurement model consisted of 32 measured items and
five latent variables using a multi-item scale. All measured items were
allowed to load on only one latent variable each, so the terms of error were
not allowed to relate to any other item in the model.
The final results of convergent validity after all eliminations are shown
in Table 3. As indicated, a factor loading greater than 0.70 is acceptable,
whereas outer loadings between 0.40 and 0.70 should be considered for
elimination; however, elimination makes sense only if it leads to enhance-
ment of the composite reliability or AVE. As indicated, the desired level
of convergent validity for AVE is 0.50. In this regard, three indicators of
personal control (Co 2, Co 3, and Co 4) were eliminated from the analy-
sis. So, the 29 items were retained in the conceptual model for further
analysis.
To evaluate the discriminant validity, a matrix that included the
matrix’s main diagonal of the AVE coefficient of each construct was
needed, along with the values of the upper and lower main diagonal,
including the correlation coefficient between each construct and the
other constructs. This matrix is shown in Table 5.
Table 5 reports the descriptive statistics, standard deviations, scale
reliabilities (CR), and correlations for the reflective variables that are used
in this study. The results show significant correlations between the depen-
dent and the independent variables and limited collinearity among the
independent variables.
The result of all indicators’ tolerance in the formative model (satisfac-
tion with work environment) of the study were higher than 0.2 and their
Social interaction 5.18 4.449 0.633 0.896 0.397 0.496 −0.283 0.796
*Is significant.
VIF values were lower than 5. This indicated that the indicators of the for-
mative measurement latent variable were appropriately constructed (Hair
et al., 2014). Table 6 shows the significance and relevance of outer weight
in formative indicators.
Others were not significant but were retained because their outer
loadings were significant (i.e., > 0.50) (outer loadings of mentioned items
are Sa2 = 0.51, Sa5 = 0.55, Sa7 = 0.76 and Sa9 = 0.65). The critical t-values
for significant levels of 1% were 2.57 (a = 0.01) and 1.65 for significant
levels of 10% (a = 0.10) (Hair et al., 2014).
The formal for measuring the confidence interval for a probability
of 10% error in this study was as follows: outer weight of formative item
–1.69 (probability of error) * bootstrap standard error for lower bound
and formative item + 1.69 (probability of error) and * bootstrap standard
error for upper bound (Hair et al., 2014). Overall, in this study, all criteria
for validating formative constructs were considered. Therefore, accord-
ing to the results, it can be concluded that in this study, the outer model
presented acceptable levels of validity and reliability after some indicators
were eliminated from latent variables (from reflective and formative con-
structs) (see Figure 2).
Table 7 shows the result of R-square and path coefficients. The coef-
ficient of determination (the value of R2) is one of the most commonly
adopted methods to measure the inner model. In fact, R2 evaluates the vari-
ation of the dependent variables (endogenous) that were explained by the
independent ones (exogenous). By following Roldán and Sánchez-Franco
(2012), and if considering R2 to be at least 0.10, the result would be sufficient
and acceptable. As suggested by Cohen (1988), the R2 value of 0.26 is consid-
ered to be considerable and large, 0.13 as moderate, and 0.02 as weak.
The f-square values are the effect size used for SEM-PLS. According
to Cohen (1988), f2 values of 0.02, 0.15, and 0.35 are considered small,
Hypothesis Testing
The paths between the latent variables in the structural model appear
in Figure 2 as standardized coefficients. As shown in Table 9, the seven
paths reached statistical significance. Based on the results of the study,
the direct effects and relationships for all constructs except one of them
reached acceptable levels. The result shows that the relationship between
environmental distraction and creative outcome with path coefficient of
0.022 and confidence interval between −0.091 and 0.135 was not sup-
ported in the hypothesis significance, because the t-value is 0.324, which
is smaller than 1.65 (for significant levels of 10% [a = 0.10]). Therefore,
this relationship is not supported.
In this study, the entity variables for satisfaction with the work environ-
ment and social interaction were hypothesized to mediate the relationship
between personal control and creative outcome. Moreover, satisfaction
with the work environment was hypothesized to mediate the relationship
between environment distraction and creative outcome. Although the rela-
tionship between environment distraction and creative outcome was not
significant, mediation exists as distraction influences satisfaction and sat-
isfaction influences creative outcome. Because a mediated causal model
includes the hypothesis that predictor variable (X) causes or affects media-
tor (M) and the hypothesis that variable mediator (M) causes or affects
outcome variables (Y), it does not make sense to consider mediator analysis
in a condition where one or both of these hypotheses would be nonsense
(Little, Card, Bovaird, Preacher, & Crandall, 2012). This condition was met
for all three mediation relationships. To assess the mediating hypotheses,
bootstrapping techniques (with 5,000 resamples) and PLS algorithm were
used on the full model to obtain path coefficients and their significant level
(Wong, 2013). As suggested by Hair et al. (2014), the path coefficient for
indirect effects or mediators was estimated by the following formula:
Path coefficient for indirect effects
Furthermore, because satisfaction with the work environment and social
interaction both share the same IV and DV (parallel mediation), the follow-
ing formula was used to calculate the t-value for each hypothesized effect:
As illustrated in Table 10, the bootstrapping analysis showed that the indi-
rect effect β1 = (0.242*0.371) = 0.089 was significant with t-value of 2.368 and
confidence interval between 0.027 and 0.152. Therefore, it can be concluded
that the mediation effect of satisfaction with the work environment was sta-
tistically significant in relation to personal control and creative outcome. The
indirect effect β2 = (0.397*0.236) = 0.093 was significant with t-value 2.447.
This result provided support for the mediation effect of social interaction in
the relationship between personal control and creative outcome.
Moreover, the bootstrapping analysis showed that the mediation effect of
satisfaction with the work environment was also supported and statistically
significant in relation to environmental distraction and creative outcome.
DOI: 10.1002/piq
CONFIDENCE INTERVAL
SUGGESTED PATH
HYPOTHESES RELATIONSHIPS COEFFICIENTS T-VALUE LOW UP P-VALUE SUPPORT
H1-Personal Control ->Satisfaction with work + 0.242 4.381 0.149 0.334 0.000 Yes
environment
H2-Personal Control ->Creative outcome + 0.134 2.295 0.035 0.232 0.000 Yes
H4-Personal Control ->Social interaction + 0.397 7.902 0.312 0.481 0.000 Yes
H5-Social interaction ->Creative outcome + 0.236 3.361 0.117 0.354 0.001 Yes
H6-Environmental Distraction ->Satisfaction with _ −0.541 8.798 −0.644 −0.437 0.000 Yes
work environment
H8-Environmental Distraction ->Creative outcome _ 0.022 0.324 −0.091 0.135 0.005 No
H10-Satisfaction with work environment + 0.371 4.680 0.237 0.503 0.000 Yes
->Creative outcome
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SAUDAH SOFIAN