Another strand of the literature highlighted that the performance of an employee could be influenced by cognitive factors, such as individual quality ( Luthans et al., 2007), supervisor support, work-life balance ( Talukder et al., 2018), cognitive abilities, personality ( Kanfer and Kantrowitz, 2005), leadership, and family supportive supervisor behaviors ( Walumbwa et al., 2010 Wang et al., 2013 Kim et al., 2015). A strand of the literature highlighted that firm-specific factors and the environment impact employee performance. Given the importance of SMEs in the economy, it is necessary to maintain and sustain the sector’s human resource performance. More importantly, the sector contributes 61.07% of the country’s total GDP and provides 97% of the entire employment ( ILO, 2019 Kementerian Koperasi dan UKM Republik Indonesia, 2019 Pramono et al., 2021). SMEs are divided into four categories: household businesses with 1–5 workers small and medium businesses with 6–19 workers medium-sized companies with 20–29 workers and large companies with more than 100 workers ( Badan Pusat Statistik, 2020). Of those, 62 million are classified as medium-sized firms, and 0.75 million are classified as small businesses. The SME sector is rapidly expanding in Indonesia, and around 63 million SMEs operate ( Surya et al., 2021). According to the report, this sector contributes more than 40% of GDP and creates 70% employment in developing economies. According to a World Bank (2020) survey on SMEs, the sector accounts for 90% of businesses and 50% of jobs globally. The importance of Small and Medium Enterprises (SMEs) in the global and national economies is worth mentioning, considering their role in creating employment and contributing to GDP. Hence, our findings provide exciting and valuable insights for research and practice. We also found that when FSSB interacts with work-life balance and job satisfaction, it moderates the relationship between work-life balance and job performance and job satisfaction and job performance. Our empirical findings also revealed that job satisfaction partially mediates the relationship between work-life balance and job performance. Empirical results demonstrate that work-life balance positively influences job satisfaction and performance. We collected data from SMEs and employed SEM-PLS to test the research hypothesis and model. ![]() We have developed a conceptually mediated-moderated model for the nexus of work-life balance and job performance. ![]() Thus, the study examines the effect of work-life balance on the performance of employees in SMEs, along with the mediating role of job satisfaction and the moderating role of family-supportive supervisor behaviors. ![]()
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