The Effect of Job Security, Financial Compensation, and Democratic Leadership on Work Motivation among MSME Workers in Jagaraga Village
DOI:
10.29303/alexandria.v7i2.1816Published:
2026-09-28Downloads
Abstract
This study aims to empirically examine the effects of Job Security, Financial Compensation, and Democratic Leadership on Work Motivation among employees of Micro, Small, and Medium Enterprises (MSMEs) in Jagaraga Village. The study employed a quantitative approach with an associative research design. Data were collected through questionnaires and analyzed using multiple linear regression, partial significance testing (t-test), simultaneous significance testing (F-test), and the coefficient of determination. The empirical findings indicate that Job Security has a positive and significant effect on Work Motivation, as evidenced by a regression coefficient of 0.468, a t-value of 5.302, and a significance level of 0.004. Financial Compensation also demonstrates a positive and significant effect on Work Motivation, with a regression coefficient of 0.419, a t-value of 4.303, and a significance level of 0.014. Furthermore, Democratic Leadership has a positive and significant effect on Work Motivation, with a regression coefficient of 0.427, a t-value of 4.783, and a significance level of 0.003. Simultaneously, Job Security, Financial Compensation, and Democratic Leadership significantly influence Work Motivation, as indicated by an F-value of 24.300 and a significance level of 0.000. The coefficient of determination (R²) of 0.613 indicates that 61.3% of the variation in Work Motivation is explained by the three independent variables, while the remaining variation is attributable to other factors outside the research model.
Keywords:
Job Security Financial Compensation Democratic Leadership Work Motivation MSMEsReferences
Azikin, M., Badaruddin, B., & Latief, F. (2026). Career security and work systems on work motivation of civil servants under employment contracts (PPPK): The mediating role of job satisfaction. Advances in Economics & Financial Studies,4(3),511–525. https://doi.org/10.60079/aefs.v4i3.1038
Bairawati, C., & Prapanca, D. (2023). The influence of democratic leadership style, work productivity and career development on work motivation on employees. Indonesian Journal of Law and Economics Review, 18(1). https://doi.org/10.21070/ijler.v18i0.844
Hilmah, S. (2023). Analisis pengaruh kepercayaan pada job security terhadap tingkat komitmen organisasi dengan mediasi motivasi intrinsik karyawan di PT Wahana Ottomitra Multiartha. AKSELERASI: Jurnal Ilmiah Nasional, 5(2), 82–89. https://doi.org/10.54783/jin.v5i2.718
Indriani, N., & Wirawan, A. (2019). Pengaruh kompensasi finansial dan non finansial terhadap motivasi kerja dan kinerja karyawan bagian lapangan pada PT United Sindo Perkasa. Journal of Applied Business Administration, 3(1), 64–78. https://doi.org/10.30871/jaba.v3i1.1285
Kahuningan, A. A. S. P., & Netra, I. G. S. K. (2023). Pengaruh kompensasi terhadap kinerja karyawan dengan motivasi sebagai variabel mediasi. E-Jurnal Ekonomi dan Bisnis Universitas Udayana, 12(12), 2434–2447. https://doi.org/10.24843/EEB.2023.v12.i12.p12
Sari, A. M., & Andri, S. (2023). Pengaruh lingkungan kerja dan kompensasi finansial terhadap loyalitas karyawan melalui motivasi kerja variabel intervening pada PT Gersindo Minang Plantation Pasaman Barat Sumatera Barat. Jurnal Ilmiah Wahana Pendidikan, 9(10), 92–105. https://doi.org/10.5281/zenodo.7983336
License
Copyright (c) 2026 Sahlan, Ika Yuliana, Febria Nurmelia, Irwan Cahyadi, Ega Dwi Putri Marswandi
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with ALEXANDRIA (Journal of Economics, Business, Tourism, and Entrepreneurship), agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution 4.0 International License. This license allows authors to use all articles, data sets, graphics and appendices in data mining applications, search engines, web sites, blogs, and other platforms by providing an appropriate reference. The journal allows the author(s) to hold the copyright without restrictions and will retain publishing rights without restrictions.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in ALEXANDRIA (Journal of Economics, Tourism, Hospitality, and Entrepreneurship).
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
