Title: The impact of wage and motivation on the tappers' loyalty as determinant of pine resin production performance at Perum Perhutani

Authors: Sangudi Muhamad; Khuzaini

Addresses: Department of Management, Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya, Menur Prumpungan Street No. 30, Surabaya, Indonesia ' Department of Management, Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya, Menur Prumpungan Street No. 30, Surabaya, Indonesia

Abstract: This study is aimed to analyse the impact of wage and motivation on the tappers' loyalty as the determinant of pine resin production performance at Perum Perhutani. Based on the relevant literatures, this study developed structural model of those four variables, which are wage, motivation, loyalty, and performance. This model then was analysed by SEM and SmartPLS v3. The data collection was conducted by applying survey methods that was spreading questionnaires to 60 tappers who were taken proportionally in KPH Lawu. The result of analysis shows that wage influences loyalty positively and significantly, and loyalty influence pine resin production performance positively and significantly. Interestingly, wage does not influence motivation significantly, and motivation does not influence loyalty and pine resin production performance significantly. Therefore, this article provides the information for Perhutani related to how increase the tappers' performance in producing the pine resin.

Keywords: pine resin; production performance; performance; motivation; loyalty; wage.

DOI: 10.1504/IJBG.2022.123608

International Journal of Business and Globalisation, 2022 Vol.30 No.3/4, pp.281 - 292

Received: 10 May 2019
Accepted: 01 Sep 2019
Published online: 30 Jun 2022 *

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