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All Journal International Journal of Environmental, Sustainability, and Social Science
Wibawa, I Made Manik Putra
Unknown Affiliation
Economics, Econometrics & Finance Environmental Science Social Sciences

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The Role of Leadership Style and Compensation in Enhancing Employee Performance: the Mediating Effect of Work Motivation Wibawa, I Made Manik Putra; Putra, Ida Bagus Udayana; Sarmawa, I Wayan Gde; Indiani, Ni Luh Putu; Sitiari, Ni Wayan; Yasa, Putu Ngurah Suyatna
International Journal of Environmental, Sustainability, and Social Science Vol. 7 No. 1 (2026): International Journal of Environmental, Sustainability, and Social Science (Jan
Publisher : PT Keberlanjutan Strategis Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38142/ijesss.v7i1.1860

Abstract

This study aims to examine the effect of leadership style and compensation on the performance of production employees, with work motivation as a mediating variable, at PT Indoprima Gemilang. A quantitative research approach was employed using a survey method. The population of this study consisted of production employees, with a sample of 100 respondents selected through proportionate stratified random sampling. Data were collected using structured questionnaires and analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) to examine both direct and indirect relationships among variables. The results indicate that leadership style and compensation have a positive and significant effect on work motivation and employee performance. In addition, work motivation has a positive and significant effect on employee performance and partially mediates the relationship between leadership style and employee performance, as well as between compensation and employee performance. These findings highlight the importance of effective leadership practices and appropriate compensation systems in enhancing employee motivation and improving production performance.
Co-Authors Ida Bagus Udayana Putra Ni Luh Putu Indiani Putu Ngurah Suyatna Yasa Sarmawa, I Wayan Gde Sitiari, Ni Wayan