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Indonesian Journal of Innovation Studies

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Section Innovation in Industrial Engineering

Partial Mediation of Employee Loyalty Across Compensation Workload Work Environment and Performance


Mediasi Parsial terhadap Loyalitas Karyawan Melalui Kompensasi, Beban Kerja, Lingkungan Kerja, dan Kinerja
Vol. 27 No. 4 (2026): October:
DOI : https://doi.org/10.21070/ijins.v27i4.2280
Published : Oct 7, 2026

Budiman Setiyoso (1), Minto Waluyo (2)

(1) Program Studi Teknik Industri, Universitas Pembangunan Nasional “Veteran” Jawa Timur, Indonesia
(2) Program Studi Teknik Industri, Universitas Pembangunan Nasional “Veteran” Jawa Timur, Indonesia
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Abstract:

General Background: Employee performance constitutes an important organizational outcome, particularly in labor-intensive manufacturing environments. Specific Background: Compensation, workload, and the work environment are organizational factors associated with employee loyalty and performance. Knowledge Gap: Earlier findings have not consistently examined employee loyalty as a mediating mechanism connecting all three organizational factors with performance, particularly in footwear manufacturing. Aims: This study analyzes relationships among compensation, workload, work environment, employee loyalty, and employee performance, with loyalty positioned as a mediator. Results: A quantitative study involving 72 of 76 employees used purposive sampling, questionnaire data, and Partial Least Squares Structural Equation Modeling with SmartPLS 3. Compensation and the work environment showed positive and significant relationships with loyalty and performance, whereas workload showed negative and significant relationships with both outcomes. Loyalty also showed a positive and significant relationship with performance and partially mediated the relationships linking compensation, workload, and work environment to performance. Novelty: The study integrates three organizational antecedents and employee loyalty within a single mediation model in a footwear manufacturing context. Implications: The findings indicate that organizational management should address compensation systems, workload alignment, supportive working conditions, and loyalty concurrently when managing workforce outcomes.


Highlights:



  • Pay-related provisions and supportive settings showed positive significant relationships.

  • Excessive task demands were negatively associated with both organizational outcomes.

  • The intervening mechanism was statistically supported across all three antecedent pathways.


Keywords: Compensation, Employee Loyalty, Employee Performance, Work Environment, Workload.

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