International Journal of Islamic Business and Management Review
Vol. 6 No. 1 (2026)

Flexible Working Arrangements, Job Satisfaction, and Employee Performance in Public Sector

Dewantoro Dewantoro (Magister Manajemen, Universitas Terbuka)
Anita Maharani (Universitas Bina Nusantara)
Endi Rekarti (Universitas Terbuka)



Article Info

Publish Date
15 Apr 2026

Abstract

Aim: This study examines the effect of Flexible Working Arrangement (FWA) on employee performance with job satisfaction as a mediating variable among civil servants at PUSINTEK, Ministry of Finance of the Republic of Indonesia. Method: A quantitative survey design was employed, collecting data from 100 civil servants through structured questionnaires using a five-point Likert scale. The study measured five constructs comprising 30 indicators: FWA, job satisfaction, employee performance, technological support, and bureaucratic work culture. Data were analysed using Structural Equation Modelling–Partial Least Squares (SEM-PLS) via SmartPLS 4 software. Results: FWA exerted a significant positive effect on job satisfaction (β = 0.667, p < 0.001) and directly on employee performance (β = 0.323, p = 0.010). Job satisfaction significantly mediated the FWA–performance relationship (partial mediation), while technological support and bureaucratic work culture did not yield significant moderating effects. Novelty: This study is among the first to empirically examine FWA in an Indonesian central government institution undergoing digital bureaucratic transformation, establishing job satisfaction as a psychological mediating mechanism and revealing that structural/contextual moderators are less influential than motivational factors in technology-driven public organisations.

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Journal Info

Abbrev

IJBMR

Publisher

Subject

Arts Economics, Econometrics & Finance Social Sciences

Description

International Journal of Islamic Business and Management Review is a peer-reviewed economic journal serving as a forum for Islamic Business Economics Scholars concerning to area of Islamic Accounting, Banking, Economics, Entrepreneurship, Finance, Human Resources Management, and Management. This ...