The Influence of Organizational Culture and Work Motivation on the Performance of Msme Employees on Flamboyant Street Manado City by Job Satisfaction as an Intervening Variable

Abstract

Human resources are fundamental to the sustainability and competitiveness of Micro, Small, and Medium Enterprises (MSMEs), particularly in Indonesia where they constitute a major segment of the economy. On Flamboyan Street in Manado City, MSMEs have experienced steady growth, yet employee performance remains a key challenge despite existing support systems. Previous studies have explored factors influencing employee performance, but limited research addresses the mediating role of job satisfaction in the relationship between organizational culture, work motivation, and performance in MSMEs. This study aims to analyze the influence of organizational culture and work motivation on employee performance, with job satisfaction as an intervening variable. Utilizing a quantitative approach with a saturated sample of 110 MSME employees, the study found that work motivation significantly affects both job satisfaction and performance. In contrast, organizational culture had no significant direct or mediated effect. Job satisfaction was shown to significantly influence performance and partially mediate the effect of work motivation on performance. The study provides empirical validation for the importance of internal motivation over organizational cultural factors in MSMEs, emphasizing the specific socio-economic context of Manado City. These findings suggest that strategies aimed at enhancing employee performance in MSMEs should prioritize motivational drivers and the creation of satisfying work environments over cultural restructuring, offering valuable insights for local enterprise development and human resource management practices.