Exploring the Roles of Competence and Commitment in Enhancing SME Performance in Central Java: The Mediating and Moderating Effects of Job Satisfaction

Abstract

This study aims to analyze the effect of competence and commitment on MSME performance in Central Java, with job satisfaction serving as both a mediating and moderating variable. MSMEs play a crucial role in the regional economy; however, efforts to improve their performance continue to face challenges related to human resources. This research employs a quantitative approach using regression analysis and Moderated Regression Analysis (MRA) with IBM SPSS software. A total of 80 MSME actors were selected through purposive sampling. The results indicate that competence does not have a direct effect on MSME performance but positively influences organizational commitment. Furthermore, organizational commitment has a significant positive effect on performance and successfully mediates the relationship between competence and performance. In contrast, job satisfaction is not found to moderate the relationship between competence and performance. These findings suggest that improving MSME performance is more effectively achieved through strengthening organizational commitment that stems from individual competence rather than relying solely on job satisfaction. The study contributes to the development of organizational behavior theory and provides practical implications for enhancing human resource capacity among MSMEs in Central Java.