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The Economics and Finance Letters

June 2021, Volume 8, 1, pp 82-91

Employee Motivation in Light Oncial, Non-Financial Rewards and Employee Commitment among Pharmaceutical SMEs of Indonesia

Sheema Matloob

,

Saeed Abbas Shah

,

Muzafar Hussain Shah

Sheema Matloob 1
Saeed Abbas Shah 2
Muzafar Hussain Shah 3


  1. School of Management Universiti Sains Malaysia, Malaysia. 1

  2. Assistant Professor Marketing, Business Administration, Sukkur IBA University, Pakistan. 2

  3. School of Economics Finance and Banking, College of Business, Universiti Utara Malaysia. 3

Pages: 82-91

DOI: 10.18488/journal.29.2021.81.82.91

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Article History:

Received: 21 December, 2020
Revised: 10 February, 2021
Accepted: 08 March, 2021
Published: 29 March, 2021


Abstract:

This paper aim to assess the effect of financial and non-financial rewards on employees’ motivation along with mediating effect of employee’s commitment on relationship of financial and non-financial rewards with employees’ motivation in pharmaceutical industry of Indonesia. For achieving the purpose, structural equation modeling was performed on collected data from 235 employees through self-administered questionnaires from pharmaceutical industry in Indonesia. This research found significant and positive effect of non-financial payments with employee motivation in results of direct relationship, current study found positive but insignificant effect of financial rewards on motivation during direct relationship. This study also found significant results of effect of financial and non-financial rewards on employee commitment. Furthermore current study found positive significant results during mediation by employees’ commitment between financial rewards, non-financial rewards with motivation, and employee commitment proved as good mediator. Implication and recommendations were also discussed in current research.
Contribution/ Originality
This study has contributed in extension of literature on both financial and non financial rewards’ importance in employee motivation. Further to this, this is one of the few studies conducted in Indonesia, especially in pharmaceutical industry.

Keywords:

Employees motivation, Employees commitment, Financial rewards, Non-financial rewards.

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Funding:

This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.

Acknowledgement:

All authors contributed equally to the conception and design of the study.

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