International Journal of Economics, Business Management and Accounting
Vol. 8 No. 2 (2026): July 2026

How Work Motivation Shapes the Effects of Leadership, Compensation, and Job Satisfaction on Employee Performance: Evidence from Timor-Leste

Veronica Sunarto Ximenes (Z & Z International School, Dili, Timor Leste)
Miswanto Miswanto (Sekolah Tinggi Ilmu Ekonomi (STIE) YKPN Yogyakarta)
Titik Kusmantini (FEB Universitas Pembangunan Nasional “Veteran”Yogyakarta)



Article Info

Publish Date
27 Jul 2026

Abstract

Employee performance is widely recognized as a key determinant of organizational effectiveness, yet empirical evidence on the roles of leadership style, compensation, job satisfaction, and work motivation remains inconclusive. This study examines the effects of leadership style, compensation, and job satisfaction on employee performance and evaluates the moderating role of work motivation. A quantitative explanatory design was employed using survey data collected from 200 employees of organizations in Timor-Leste through purposive sampling. The hypotheses were tested using Moderated Regression Analysis (MRA). The results show that leadership style and compensation have positive and significant effects on employee performance, whereas job satisfaction does not significantly influence performance. Work motivation strengthens the positive effects of leadership style and compensation, indicating that motivated employees benefit more from effective leadership and equitable compensation. By contrast, work motivation weakens the relationship between job satisfaction and employee performance, suggesting that highly motivated employees rely less on job satisfaction to sustain their performance. These findings extend Social Exchange Theory by showing that the role of work motivation depends on the organizational context and the antecedents of employee performance.

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Journal Info

Abbrev

ijebma

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

International Journal of Economics, Business Management and Accounting (IJEBMA) is a research journal in the discipline of economics, business, management, information management, and accounting which is aimed to contribute to a novelty or state-of-the-art academic development or real-world business ...