Reward Management Strategy to Increase MSME Employee Loyalty in the Digital Era

Endayani ; Fatmasari ; Sopiah Sopiah ; Ludi Wishnu Wardana
International Journal of Management Science and En... 📅 2025 Vol 2, No 1 🔗 DOI: 10.70062/globalmanagement.v2i1.102
Abstract
This study examines the effectiveness of reward management strategies in increasing the loyalty of MSME employees in the digital era. Using a quantitative approach with a sample of 10 MSMEs in Indonesia for the 2020-2024 period, the study analyzed the relationship between the reward management component and employee loyalty, with the level of digitalization as the moderator variable. The results of hierarchical multiple regression analysis showed a significant positive relationship between all components of reward management and employee loyalty, with financial compensation (r = 0.68) and recognition system (r = 0.62) as the strongest predictors. The level of digitalization has been shown to significantly moderate the relationship, with highly digitized MSMEs showing an average increase in employee loyalty of 12.5% per year. Variations in effectiveness were found based on the characteristics of MSMEs, where the service sector showed higher elasticity towards the implementation of the digital reward system. This research contributes to the development of an adaptive reward management framework for MSMEs in the digital era, as well as providing practical implications for optimizing employee retention strategies in the MSME sector.
 
Keywords
reward management; employee loyalty; MSMEs; digitalization; digital transformation
How to Cite

Endayani, et al. (2025). Reward Management Strategy to Increase MSME Employee Loyalty in the Digital Era. International Journal of Management Science and Entrepreneurship, 2(1). https://doi.org/10.70062/globalmanagement.v2i1.102

Endayani, Fatmasari; Sopiah Sopiah; Ludi Wishnu Wardana, "Reward Management Strategy to Increase MSME Employee Loyalty in the Digital Era," International Journal of Management Science and Entrepreneurship, vol. 2, no. 1, 2025.

Endayani, Fatmasari; Sopiah Sopiah; Ludi Wishnu Wardana. "Reward Management Strategy to Increase MSME Employee Loyalty in the Digital Era." International Journal of Management Science and Entrepreneurship, vol. 2, no. 1, 2025.

Endayani, Fatmasari; Sopiah Sopiah; Ludi Wishnu Wardana. "Reward Management Strategy to Increase MSME Employee Loyalty in the Digital Era." International Journal of Management Science and Entrepreneurship 2, no. 1 (2025).

Endayani, et al. (2025) 'Reward Management Strategy to Increase MSME Employee Loyalty in the Digital Era', International Journal of Management Science and Entrepreneurship, 2(1). doi: 10.70062/globalmanagement.v2i1.102.

Endayani, Fatmasari; Sopiah Sopiah; Ludi Wishnu Wardana. Reward Management Strategy to Increase MSME Employee Loyalty in the Digital Era. International Journal of Management Science and Entrepreneurship. 2025;2(1).

Artikel Terkait

Nursing Competency: Mediating Burnout, Coaching, and Documentation Completeness in Bekasi General Hospital

Slamet Yuliono; Nofierni Nofierni; Sandra Dewi

Challenges and Strategies for the Internationalization of Indonesian SMEs in the Global Value Chain in the Digital Age

Agus Fitriadi; Sudarmiatin Sudarmiatin; Heri Pratikto

The Role of Facebook Pro in Marketing Efforts: The Influence of Copywriting, Visual Marketing Promotion, and Community Management on Campaign Success Local Brand in Bandar Lampung

Wulandari Wulandari; Lestari Wuryanti; Ayu Nursari

The Influence of HR Analytics, Development Competence and Leadership Support on Employee Performance with Organizational Agility as a Moderating Variable : (A Study on Employees of the Department of Industry and an Trade in Lampung Province)

Danti Indriana; Rahyono Rahyono; Reza Hardian Pratama

The Impact of Product Innovation and Digital Capabilities on the International Competitiveness of Indonesian Culinary SMEs

Rikardus Kurnia Lango; Sudarmiatin Sudarmiatin; Heri Pratikto

Analysis of Medical Personnel Compliance Factors in Prescribing Based on the National Formulary

Siska Karma Gianti; Agusdini Banun Saptaningsih; Johanes Johanes
Tren Sitasi Jurnal