THE EFFECT OF COMPETENCY, KNOWLEDGE SHARING ON EMPLOYEE PERFORMANCE BY MEDIATION OF WORK MOTIVATION ON MSMEs IN PALANGKARAYA CITY

Abstract

This study investigates the influence of competence and knowledge sharing on employee performance, mediated by work motivation, in micro, small, and medium enterprises (MSMEs) in Palangka Raya. As a crucial pillar of Indonesia’s economy, MSMEs play a vital role in employment and regional income. However, many MSMEs in Palangka Raya still face challenges in managing human resources systematically. This research adopts a quantitative associative method with total sampling of 60 MSME employees. Data were collected through questionnaires and analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM). The results are expected to explain both direct and indirect effects of competence and knowledge sharing on employee performance through work motivation as a mediating variable. The study aims to identify key factors that enhance employee performance and to provide practical insights for MSME managers on improving HR practices. This research contributes to the theoretical understanding of human resource management in the MSME sector and offers practical strategies for fostering a more productive and motivated workforce. The findings are anticipated to support MSMEs in developing structured HR development programs to increase competitiveness in an increasingly digital and competitive economic environment.