Journal of Sustainable Economic and Business
Vol. 3 No. 3 (2026): Journal of Sustainable Economic and Business (JOSEB)

The Effect of Work Environment and Compensation Differences on Sustainable Employee Performance through Motivation

Dian Firdaus Ahadi (Universitas Mercu Buana)
Kasmir Kasmir (Universitas Mercu Buana)



Article Info

Publish Date
27 Jul 2026

Abstract

Objectives: This study examines the effect of work environment and compensation differences on sustainable employee performance, both directly and indirectly through motivation as an intervening variable, among employees who prepare State-Owned Property (BMN) Supervision and Control Reports at the Supreme Court of the Republic of Indonesia in the West Java region. Methodology: This study used a quantitative approach with a survey method involving 159 respondents selected through census (saturated) sampling. Data were collected using a five-point Likert-scale questionnaire and analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with SmartPLS software. Finding: The results show that work environment has no significant direct effect on sustainable employee performance, whereas compensation differences, motivation, and the indirect path from work environment through motivation each have a significant positive effect. Compensation differences were found to be the most dominant factor influencing both motivation and sustainable employee performance. Conclusion: Motivation plays a key mediating role in linking work environment and compensation differences to sustainable employee performance. Organizations, particularly the Supreme Court of the Republic of Indonesia, are recommended to strengthen employee motivation programs alongside compensation management to optimize sustainable performance outcomes.

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Journal Info

Abbrev

joseb

Publisher

Subject

Agriculture, Biological Sciences & Forestry Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Social Sciences

Description

Journal of Sustainable Economic and Business (JOSEB) is a double-blind review journal focused on empirical research that provides novelty of the research with the latest issues and contributions to the scientific research. The scope of the journal will focus on Strategic Management (Strategic ...