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All Journal Al-Muaddib : Jurnal Ilmu-Ilmu Sosial & Keislaman Aghniya: Jurnal Ekonomi Islam Al-Sharf: Jurnal Ekonomi Islam International Journal of Economics (IJEC) Journal of Economics, Entrepreneurship, Management Business and Accounting West Science Social and Humanities Studies
Syahputra, Danil
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Religion Humanities Economics, Econometrics & Finance Education Law, Crime, Criminology & Criminal Justice Public Health Social Sciences Other

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The Mediating Role of Work Engagement in the Relationship Between Organizational Culture and Employee Performance in Indonesian MSMEs Ningsih, Supiah; Syahputra, Danil; Irwansyah, Rudy
Journal of Economics, Entrepreneurship, Management Business and Accounting Vol 4 No 2 (2026): Volume 4, Issue 2, March 2026
Publisher : CV. Sakura Digital Nusantara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61255/jeemba.v4i1.853

Abstract

Purpose - This study aims to examine the mediating role of work engagement in the relationship between organizational culture and employee performance in Indonesian Micro, Small, and Medium Enterprises (MSMEs). Design/Methodology/Approach – A quantitative cross-sectional survey design was employed. Data were collected from 210 MSME employees across trade, service, and manufacturing sectors in North Sumatra, Indonesia. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess direct and indirect relationships among organizational culture, work engagement, and employee performance. Findings – The results indicate that organizational culture has a positive and significant effect on employee performance (β = 0.381, p < 0.001) and work engagement (β = 0.721, p < 0.001). Work engagement also significantly affects employee performance (β = 0.409, p < 0.001) and partially mediates the relationship between organizational culture and employee performance (β = 0.295, p < 0.001). The model demonstrates substantial explanatory power, with R² values of 0.520 for work engagement and 0.612 for employee performance. Research Limitations/Implications – This study is limited by its cross-sectional design, which restricts causal inference, and its focus on MSMEs in North Sumatra, which may limit generalizability. Future research is encouraged to adopt longitudinal designs and broader regional samples. Practical Implications – The findings highlight the importance of fostering a supportive organizational culture to enhance employee engagement and improve performance outcomes in MSMEs. Originality/Value – This study contributes to the literature by providing empirical evidence on the mediating role of work engagement in MSMEs, a context that remains underexplored in prior research.
Integration of Islamic Social Finance and Digitalization for MSME Strengthening and Poverty Alleviation: Evidence from SEM-PLS Syahputra, Danil; Ningsih, Supiah; Syah, Muhammad Radian
Journal of Economics, Entrepreneurship, Management Business and Accounting Vol 4 No 2 (2026): Volume 4, Issue 2, March 2026
Publisher : CV. Sakura Digital Nusantara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61255/jeemba.v4i1.870

Abstract

Purpose - This study examines the integrated role of Islamic social finance and economic digitalization in strengthening MSMEs and alleviating poverty in North Sumatra, Indonesia. While prior studies have largely analyzed these domains separately, this research is motivated by the need for a unified framework that explains how their interaction contributes to inclusive economic development. The study specifically investigates the mediating role of MSME strengthening in linking finance digitalization integration to poverty reduction. Design/Methodology/Approach – A quantitative explanatory approach was employed using survey data from 210 MSMEs across trade, service, and food processing sectors. Data were analyzed using Partial Least Squares Structural Equation Modeling (SEM-PLS) with bootstrapping (5,000 resamples) to test direct and indirect relationships among Islamic social finance integration, economic digitalization, MSME strengthening, and poverty alleviation. Findings/Results - The results show that Islamic social finance integration (β = 0.312) and economic digitalization (β = 0.421) significantly enhance MSME strengthening. Both variables also directly influence poverty alleviation (β = 0.198 and β = 0.243), while MSME strengthening has a strong positive effect on poverty alleviation (β = 0.379). Mediation analysis confirms that MSME strengthening partially mediates these relationships, indicating that MSMEs function as a key transmission mechanism. These findings demonstrate that integrating financial inclusion and digital transformation produces both direct and indirect welfare effects. Originality/Value - This study contributes by proposing an integrated finance digitalization framework that positions MSMEs as a central mediating mechanism in poverty alleviation. The findings highlight that sustainable poverty reduction is more effective when Islamic social finance is combined with digital economic systems and channeled through MSME development, offering practical implications for policymakers in designing inclusive, technology-enabled economic strategies.
Co-Authors Cikita Berlian Hakim Harahap, M. Guffar Irwansyah, Rudy Marpaung, Durahman Munawaroh Munawaroh Nazifah Husainah Putri Silalahi, Cita Ayni Supiah Ningsih Syah, Muhammad Radian Syah, Syafrial Wibowo, Adityo Ari