The Effects of E-Performance and Digital Leadership on Self-Motivation and Employee Performance in MSMEs

Abstract. This study aims to determine the role of e-performance and digital leadership in enhancing self-motivation and employee performance in micro, small, and medium enterprises (MSMEs) in North Luwu. The study employs a quantitative approach targeting all employees involved in MSMEs in North Luwu as the research population. Empirical analysis was conducted using a sample of 309 millennials. Data collection was carried out through an online survey. After passing reliability and validity tests, the data were analyzed using a structural equation model based on partial least squares (PLS-SEM). The research results indicate that e-performance has a significant and positive direct impact on employee performance (0.001 < 0.005) and self-motivation (0.000 < 0.05). Similarly, digital leadership shows a significant and positive direct effect on employee performance (0.002 < 0.05) and self-motivation (0.000 < 0.05). Interestingly, however, self-motivation does not have a positive direct impact on employee performance (0.127 > 0.05), thus rejecting one of the five hypotheses proposed in this study. This research can contribute to managers and employees of MSMEs regarding the importance of implementing an effective e-performance system and digital leadership to improve MSME employee performance and motivation. Managers must ensure that the e-performance system provides constructive feedback and focuses on key elements such as accessibility and accuracy. Furthermore, digital leadership needs to support the development of technological skills and an innovation-driven culture. The findings of this study can also provide empirical support for the theory of planned behavior, thus providing a more comprehensive model of the relationship between e-performance, digital leadership, self-motivation, and employee performance. Keywords: E peformance, digital leadership, self-motivation, employee performance, and MSMEs