The Effects of Intrinsic and Extrinsic Motivation on Employee Performance: The Mediating Role of Employee Ability
DOI:
https://doi.org/10.54099/aijbs.v6i2.1989Keywords:
Intrinsic Motivation, Extrinsic Motivation, Employee Ability, Employee PerformanceAbstract
This study aims to examine the effects of intrinsic and extrinsic motivation on employee performance and to analyze the mediating role of employee ability at PG Gempolkrep, PT Sinergi Gula Nusantara Mojokerto. A quantitative explanatory research design was employed. The population consisted of 124 permanent employees, and a census sampling technique was applied by involving all members of the population as research respondents. Data were collected through a structured questionnaire measured on a five-point Likert scale and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS to assess the measurement model, structural model, direct effects, and mediation effects. The findings show that intrinsic motivation and extrinsic motivation have positive and significant effects on employee performance and employee ability, while employee ability also has a positive and significant effect on employee performance. Moreover, employee ability partially mediates the effects of both intrinsic and extrinsic motivation on employee performance. These results indicate that sustainable performance improvement requires the simultaneous strengthening of employee motivation and capability. This study contributes to the literature by positioning employee ability not only as a direct determinant of performance but also as a mediating mechanism that explains how motivational factors are translated into performance outcomes, particularly within the relatively underexplored context of the sugar manufacturing industry.
Keywords: Intrinsic Motivation, Extrinsic Motivation, Employee Ability, Employee Performance
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