Al-Kharaj: Journal of Islamic Economic and Business
Vol. 8 No. 2 (2026): All articles in this issue include authors from 3 countries of origin (Indonesi

The Influence of Self-Esteem and Self-Efficacy on Employee Job Satisfaction (Case Study of MSMEs in Palopo City)

Yesi (Universitas Muhammadiyah Palopo)
Muhammad Kasran (Universitas Muhammadiyah Palopo)
Samsinar (Universitas Muhammadiyah Palopo)



Article Info

Publish Date
29 May 2026

Abstract

This study examines the influence of self-esteem and self-efficacy on employee job satisfaction (case study on MSMEs in Palopo City). Quantitative methods were used with a population consisting of MSME employees in Palopo City. A sample of one hundred and fifty employees was selected using a purposive sampling technique. The analysis was conducted using Structural Equation Modeling (SEM) and Partial Least Squares (PLS-SEM) with Smart PLS 4. The results of the study indicate that (1) self-esteem and self-efficacy play a major role in influencing employee job satisfaction in MSMEs in Palopo City. (2) Employees who feel valued and confident in their abilities tend to be more satisfied, more motivated, and experience lower stress levels. (3) These findings indicate that MSME owners can improve employee job satisfaction by providing training, rewards, and career development opportunities. In addition, this research can also serve as a reference for policy makers in designing regulations that support the welfare of MSME workers and increase the competitiveness of small businesses.

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Journal Info

Abbrev

alkharaj

Publisher

Subject

Economics, Econometrics & Finance

Description

Al-Kharaj, Journal of Islamic Economic and Business is peer-reviewed journal published by program studi ekonomi syariah , Institut Agama Islam Negeri (IAIN) Palopo. Al-Kharaj focus on the research of Islamic Economic and Business. The aims of this journal is to explore and develop economic related ...