Employee Competency as a Mediator Between Management Knowledge, Motivation, and Employee Performance in Labor-Intensive Manufacturing

Tubagus Hedi Saepudin; Adler Haymans Manurung; Nera Marinda Machdar; Wastam Wahyu Hidayat

doi:10.32535/ijabim.v11i1.5075

Employee Competency as a Mediator Between Management Knowledge, Motivation, and Employee Performance in Labor-Intensive Manufacturing

Tubagus Hedi Saepudin, Adler Haymans Manurung, Nera Marinda Machdar, Wastam Wahyu Hidayat

Abstract

Employee performance is crucial to organizational productivity and competitiveness, particularly in labor-intensive manufacturing industries where workforce capabilities directly affect operational outcomes. This study examines the mediating role of employee competency in the relationships between management knowledge, motivation, and employee performance. Using a quantitative, cross-sectional design, data were collected from 342 employees of an Indonesian manufacturing company between January and March 2026 and analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 4. The results indicate that management knowledge is positively associated with employee competency (? = 1.186, p < 0.001), whereas motivation shows a significant negative association (? = ?0.514, p < 0.001). Employee competency is positively associated with employee performance (? = 0.977, p < 0.001). Furthermore, employee competency significantly mediates the effects of management knowledge (? = 1.159, p < 0.001) and motivation (? = ?0.502, p < 0.001) on employee performance. These findings highlight the mediating role of competency within Human Capital Theory and suggest prioritizing knowledge development, competency-based training, and the evaluation of motivational practices to enhance workforce performance.

Keywords

Competency; Employee Performance; Human Capital Theory; Management Knowledge; Motivation

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References

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DOI: https://doi.org/10.32535/ijabim.v11i1.5075