Article Per Year (5 Year)
p-Index From 2020 - 2025
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All Journal Global Management: International Journal of Management Science and Entrepreneurship
Fatmasari Endayani
Universitas Negeri Malang, Indonesia
Decision Sciences, Operations Research & Management

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Reward Management Strategy to Increase MSME Employee Loyalty in the Digital Era Fatmasari Endayani; Sopiah Sopiah; Ludi Wishnu Wardana
Global Management: International Journal of Management Science and Entrepreneurship Vol. 2 No. 1 (2025): International Journal of Management Science and Entrepreneurship
Publisher : International Forum of Researchers and Lecturers

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70062/globalmanagement.v2i1.102

Abstract

This study examines the effectiveness of reward management strategies in increasing the loyalty of MSME employees in the digital era. Using a quantitative approach with a sample of 10 MSMEs in Indonesia for the 2020-2024 period, the study analyzed the relationship between the reward management component and employee loyalty, with the level of digitalization as the moderator variable. The results of hierarchical multiple regression analysis showed a significant positive relationship between all components of reward management and employee loyalty, with financial compensation (r = 0.68) and recognition system (r = 0.62) as the strongest predictors. The level of digitalization has been shown to significantly moderate the relationship, with highly digitized MSMEs showing an average increase in employee loyalty of 12.5% per year. Variations in effectiveness were found based on the characteristics of MSMEs, where the service sector showed higher elasticity towards the implementation of the digital reward system. This research contributes to the development of an adaptive reward management framework for MSMEs in the digital era, as well as providing practical implications for optimizing employee retention strategies in the MSME sector.  
Co-Authors Ludi Wishnu Wardana Sopiah, Sopiah