Determinants of Employee Performance in Retail Organizations

Abstract

This study aims to examine the key determinants of employee performance in retail organizations by analyzing the effects of knowledge transfer, training quality, organizational support, and work motivation. The research seeks to identify which factors play the most significant role in enhancing employee performance within a labor intensive retail context. A quantitative explanatory research design was employed using a cross sectional survey approach. Data were collected from 205 employees working in modern retail organizations in Medan, Indonesia. A structured questionnaire was used to measure all constructs, and the data were analyzed using Structural Equation Modeling with a partial least squares approach to assess both the measurement and structural models. The results indicate that all examined determinants have a positive and significant effect on employee performance. Organizational support emerges as the strongest predictor, followed by training quality, work motivation, and knowledge transfer. These findings suggest that employee performance in retail organizations is shaped by a combination of organizational practices, motivational conditions, and knowledge related processes. This study contributes to the human resource management literature by providing an integrative empirical model that explains employee performance in retail organizations. It offers practical insights for retail managers by highlighting the importance of supportive work environments, effective training systems, and motivational strategies to improve employee performance.