The Role of Work Environment in Moderating the Effect of Leadership, Motivation, and Compensation on Employee Performance (A Study at the Forestry Service of Southeast Sulawesi)
Keywords:
Compensation, Employee Performance, Leadership, Motivation, Work EnvironmentAbstract
This study aims to examine the effect of leadership, motivation, and compensation on employee performance, with the
work environment serving as a moderating variable at the Forestry Service of Southeast Sulawesi. A quantitative
research approach was employed, with data collected from 220 employees using a structured questionnaire based on
a Likert scale (1–5). The study included leadership, motivation, and compensation as independent variables, employee
performance as the dependent variable, and work environment as the moderating variable. Data were analyzed using
Partial Least Squares–Structural Equation Modeling (PLS-SEM) to evaluate both direct and indirect relationships
among the variables. The results indicate that leadership, motivation, and compensation each have a positive and
significant effect on employee performance. Furthermore, the work environment significantly moderates the
relationship between these variables and employee performance, strengthening the impact of leadership, motivation,
and compensation when the work environment is supportive and conducive. The findings suggest that optimizing
leadership practices, enhancing motivation, and providing fair compensation, combined with a positive work
environment, can effectively improve employee performance. This study provides practical implications for managers
and policymakers in public sector organizations to create a conducive work environment that maximizes employee
productivity and organizational outcomes.
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Copyright (c) 2026 International Association of Management and Human Resource Development
This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License.
