PERTANIKA JOURNAL OF SOCIAL SCIENCES AND HUMANITIES

­A traditional institution like a palace regards organisational commitment as a vital factor to maintain performance and sustainability, but interestingly, it provides its own internal system and uniqueness in comprehending and practicing it. This article examines the impact of paternalistic leadership (PL) on organisational commitment (OC), using job satisfaction (JS) and compensation as mediators. JS and compensation are considered minor variables in measuring the direct impact of PL on OC. The sample consists of 229 out of 1300 individuals working as Abdi Dalem (palace servants) in various positions within the Yogyakarta Palace, Indonesia. The hypotheses were tested using partial least squares structural equation modelling (PLS-SEM). The findings revealed a significant negative impact of PL on OC. However, when both mediators were considered, a positive impact between PL and OC through compensation emerged. Interestingly, while PL had a positive impact on JS, it had a negative impact on OC. These results highlight the unique nature of the relationship between PL and OC within the specific context of the population under study. The article suggests that traditional institutions like the Yogyakarta Palace have unique characteristics in the relationship between PL and OC, with implications for stakeholders in policy-making.