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 (Unknown)
Maharani, Anita (Unknown)
Rekarti, Endi (Unknown)



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 ...