International Journal of Business, Law, and Education
Vol. 7 No. 1 (2026): International Journal of Business, Law, and Education

Work Motivation, Work Discipline, and Employee Loyalty in a Public Water Utility: The Mediating Role of Job Satisfaction

Defri Yuslana Karim (Department of Management, Faculty of Economics and Management, Universitas Malahayati, Indonesia)
Fahrezzi Tegar Pamungkas (Department of Management, Faculty of Economics and Management, Universitas Malahayati, Indonesia)
Muhammad Faraz Al Fath (Department of Management, Faculty of Economics and Management, Universitas Malahayati, Indonesia)
Febrianty Febrianty (Department of Management, Faculty of Economics and Management, Universitas Malahayati, Indonesia)
Reza Hardian Pratama (Department of Management, Faculty of Economics and Management, Universitas Malahayati, Indonesia)



Article Info

Publish Date
04 Jun 2026

Abstract

Purpose: This study examines how work motivation and work discipline influence employee loyalty in the Regional Public Drinking Water Company (PDAM) of Bandar Lampung City, with job satisfaction positioned as a mediating mechanism. Design/methodology/approach: A quantitative explanatory design was applied. Primary data were collected through a structured questionnaire administered to 82 permanent employees who had worked for at least one year. The model was assessed using partial least squares structural equation modeling (PLS-SEM). Measurement quality was evaluated through indicator loadings, average variance extracted, and composite reliability, while the structural model was evaluated using path coefficients, t-statistics, p-values, and coefficients of determination. Findings: Work discipline had the strongest positive effect on job satisfaction (β = 0.614, p < .001), followed by work motivation (β = 0.322, p = .006). Job satisfaction significantly predicted employee loyalty (β = 0.517, p < .001). Work motivation also had a direct positive effect on employee loyalty (β = 0.309, p = .003), whereas work discipline did not directly predict employee loyalty (β = 0.142, p = .273). The coefficient pattern indicates that job satisfaction is a central mechanism linking motivation and discipline to loyalty. Originality/value: The study contributes to public-sector human resource management by showing that employee loyalty in a municipal water utility depends not only on rule compliance and motivation, but also on whether these conditions translate into felt job satisfaction.

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Economics, Econometrics & Finance Education Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Neuroscience Social Sciences Other

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International Journal of Business, Law, and Education disseminates knowledge about Business, Law, and Education that useful to academics, educators, scholars, managers, practitioners, policy makers, consumers, and other stakeholders all around the ...