Examining the Relationship Model of Positive Antecedents of Employee Performance in MSMEs

Abstract

Various antecedents of employee performance (EP) have been studied, but the relationship model among these variables remains a topic of debate. Establishing such a model is crucial for business owners to identify and prioritize the most important variables in improving EP. Therefore, this research aimed to test the relationship model of organizational commitment (OC), specifically affective organizational commitment (AOC) and continuance organizational commitment (COC), work engagement (WE), as well as intrinsic motivation (IM), in improving EP. A total of 717 employees from micro, small, and medium enterprises (MSMEs) in Indonesia were selected as respondents. After testing the validity and reliability of the measuring instrument, the relationship model was tested using structural equation modeling (SEM) in two steps. The results showed that the four psychological forces and employees' work attitudes influence each other and increase EP. WE and IM were two variables that could consistently increase EP directly. WE could increase motivation and commitment, as motivation has consistently been considered as a mediating variable in this relationship model. This research contributed to the evidence of social exchange theory, self-determination theory, and resource-based view in managing and improving EP. It also provided important discussions on the need to improve WE to achieve high performance.