Mediation Role of Job Satisfaction on the Influence of Non-Financial Compensation and Transactional Leadership on Employee Performance

Abstract

The industrial sector influences the economic activity of a region. Surakarta City is one of the cities with considerable potential as a center of economic activity. The industrial sector is still the driving force of the economy in Surakarta City. The growth of leading industries is of particular concern in the economic development of a region, considering that this sector is the foundation for the formation and growth of the economy (Kumar et al., 2020). Surakarta City has many potential export-scale industries such as food and beverages, tobacco processing, textiles, apparel, leather and leather goods, wood, wood products, plaiting, paper, and paper goods on a regional scale, publishing, printing. Reproduction of recording media, chemicals, and goods from chemicals, rubber, and rubber goods.One of the leading industries in Surakarta City is the food and beverage industry. Based on data from the Surakarta City Central Statistics Agency, in 2018, the value of the contribution of the food and beverage production sector to the Gross Regional Domestic Product (GRDP) in Surakarta City was 5.85 percent of all business sectors. However, the growth in production value from 2012 until 2017 decreased by Rp. 7.9 billion (BPS Kota Surakarta, 2018). Based on theoretical and empirical studies found several factors that affect employee performance include:

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