The Influence of Motivation, Incentives, and Work Environment on Employee Performance Through Job Satisfaction as an Intervening Variable at PT Mitra Niaga Madani

Abstract

This study examines the influence of motivation, incentives, and work environment on employee performance with job satisfaction as an intervening variable at PT Mitra Niaga Madani. Employing a quantitative approach with saturated sampling, all 98 employees participated in the survey. Data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) with SmartPLS 3.0 and bootstrapping with 5,000 subsamples. The findings confirm seven of ten hypotheses. Motivation, incentives, and work environment significantly influence job satisfaction. However, motivation does not directly and significantly influence employee performance. Incentives, work environment, and job satisfaction demonstrate significant direct effects on performance. Crucially, the indirect pathways—motivation → job satisfaction → employee performance, incentives → job satisfaction → employee performance, and work environment → job satisfaction → employee performance—are all significant, demonstrating that job satisfaction functions as a complementary mediating mechanism. These findings confirm that enhancing employee performance requires integrated management of motivation, incentive systems, and work environment through strengthening job satisfaction.