THE MEDIATING EFFECT OF JOB SATISFACTION IN THE INFLUENCE OF NON-PHYSICAL ENVIRONMENT ON EMPLOYEE PERFORMANCE

Abstract

Purpose: This study explores the impact of non-physical environment on job satisfaction and employee performance, with an emphasis on the mediating role of job satisfaction. Involving 125 staff-level respondents from paper companies in East Java, Methods: This study used Structural Equation Modeling Partial Least Squares (SEM PLS) method to analyze quantitative data collected through Likert-scale questionnaires. Resullt and Conclusion: The findings showed that the non-physical environment has a significant positive influence on job satisfaction and employee performance. In addition, the mediating role of job satisfaction was found to be significant, indicating that job satisfaction is able to mediate the relationship between non-physical environment and employee performance. Research Implication: Managerial implications include improving non-physical facilities and strategies to increase job satisfaction. Originality/Value: This research contributes to the understanding of the complex dynamics in the work environment and offers insights for human resource managers to improve working conditions and employee performance. Recommendations involve improving management policies and practices to create an environment that supports and stimulates optimal performance.