Job Satisfaction as a Mediator of Compensation and Leadership Style on Digital Workforce Performance in Indonesian Tech Startups

This study investigates the effect of compensation and leadership style on employee performance, with job satisfaction as a mediating variable, among digital workers in Indonesian tech startups. Using a quantitative approach, data were collected from 200 respondents through a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that compensation has both direct and indirect effects on performance, while leadership style affects performance only indirectly through job satisfaction. Job satisfaction plays a significant mediating role, reflecting how psychological well-being connects compensation and leadership with performance outcomes. The model demonstrates strong explanatory power (R² = 0.643) and predictive relevance (Q² = 0.457), confirming the robustness of the proposed framework. These findings highlight the importance of integrating structural, relational, and psychological factors to improve performance in dynamic digital work environments.

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Publication Details

Journal
Dinasti International Journal of Education Management And Social Science
Published
2025-10-02
DOI
https://doi.org/10.38035/dijemss.v7i1.5136
Primary Topic
Employee Performance and Management
Type
article
Field-Weighted Citation Impact
0.00
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article

Job Satisfaction as a Mediator of Compensation and Leadership Style on Digital Workforce Performance in Indonesian Tech Startups

Muhamad Al Faruq Abdullah, Wenny Desty Febrian
Dinasti International Journal of Education Management And Social Science
Employee Performance and Management
article

Job Satisfaction as a Mediator of Compensation and Leadership Style on Digital Workforce Performance in Indonesian Tech Startups

Muhamad Al Faruq Abdullah, Wenny Desty Febrian
article en

Abstract

This study investigates the effect of compensation and leadership style on employee performance, with job satisfaction as a mediating variable, among digital workers in Indonesian tech startups. Using a quantitative approach, data were collected from 200 respondents through a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that compensation has both direct and indirect effects on performance, while leadership style affects performance only indirectly through job satisfaction. Job satisfaction plays a significant mediating role, reflecting how psychological well-being connects compensation and leadership with performance outcomes. The model demonstrates strong explanatory power (R² = 0.643) and predictive relevance (Q² = 0.457), confirming the robustness of the proposed framework. These findings highlight the importance of integrating structural, relational, and psychological factors to improve performance in dynamic digital work environments.

Dinasti International Journal of Education Management And Social ScienceVol. 7(1)
Universitas Dian Nusantara (ID)
Openalex Percentile: Top 50%
Employee Performance and Management
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Job Satisfaction as a Mediator of Compensation and Leadership Style on Digital Workforce Performance in Indonesian Tech Startups — Muhamad Al Faruq Abdullah, Wenny Desty Febrian · Dinasti International Journal of Education Management And Social Science (2025) | TGRS Research Map | TGRS