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All Journal Journal of Sustainable Economic and Business
Dian Firdaus Ahadi
Universitas Mercu Buana
Agriculture, Biological Sciences & Forestry Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Social Sciences

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The Effect of Work Environment and Compensation Differences on Sustainable Employee Performance through Motivation Dian Firdaus Ahadi; Kasmir Kasmir
Journal of Sustainable Economic and Business Vol. 3 No. 3 (2026): Journal of Sustainable Economic and Business (JOSEB)
Publisher : ARE Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70550/joseb.v3i3.696

Abstract

Objectives: This study examines the effect of work environment and compensation differences on sustainable employee performance, both directly and indirectly through motivation as an intervening variable, among employees who prepare State-Owned Property (BMN) Supervision and Control Reports at the Supreme Court of the Republic of Indonesia in the West Java region. Methodology: This study used a quantitative approach with a survey method involving 159 respondents selected through census (saturated) sampling. Data were collected using a five-point Likert-scale questionnaire and analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with SmartPLS software. Finding: The results show that work environment has no significant direct effect on sustainable employee performance, whereas compensation differences, motivation, and the indirect path from work environment through motivation each have a significant positive effect. Compensation differences were found to be the most dominant factor influencing both motivation and sustainable employee performance. Conclusion: Motivation plays a key mediating role in linking work environment and compensation differences to sustainable employee performance. Organizations, particularly the Supreme Court of the Republic of Indonesia, are recommended to strengthen employee motivation programs alongside compensation management to optimize sustainable performance outcomes.
Co-Authors Kasmir