This study aims to analyze the effect of physical work environment, non-physical work environment, and situational leadership on employee performance, as well as to examine the moderating role of work motivation at PT Azuki Sinergi Indonesia. The study used a quantitative explanatory approach with a survey method involving 80 production employees. Data were analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The measurement model was evaluated through convergent validity, discriminant validity, Cronbach's Alpha, and Composite Reliability, while the structural model was evaluated through R-Square and bootstrapping. The results show that the physical work environment does not have a significant effect on employee performance, with a path coefficient of -0.155, t-statistic 0.930, and p-value 0.353. The non-physical work environment also does not have a significant direct effect, with a coefficient of 0.280, t-statistic 0.966, and p-value 0.334. Situational leadership has a positive and significant effect on employee performance, with a coefficient of 0.637, t-statistic 2.387, and p-value 0.017. Work motivation does not significantly moderate the physical work environment-performance relationship, but significantly strengthens the non-physical work environment-performance relationship and significantly weakens the situational leadership-performance relationship. The findings indicate that adaptive leadership is the most important direct predictor of employee performance in the research context.
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