The Effect of Incentives, Motivation, and Leadership on Sales through Employee Performance

M. Nabil Daffany  Aldian; Moch. Tutuk  Safirin

doi:10.37899/journal-la-sociale.v6i6.2255

M. Nabil Daffany Aldian Industrial Engineering Study Program, Faculty of Engineering and Science, University of Pembangunan Nasional “Veteran” East Java, Surabaya, Indonesia
Moch. Tutuk Safirin Industrial Engineering Study Program, Faculty of Engineering and Science, University of Pembangunan Nasional “Veteran” East Java, Surabaya, Indonesia

DOI: https://doi.org/10.37899/journal-la-sociale.v6i6.2255

Keywords: Incentives, Motivation, Leadership, Performance, Sales Improvement

Abstract

This research investigates the effects of incentives, motivation, and leadership on sales improvement, considering employee performance as a mediating variable, within the context of CV. Sendy Leather. A quantitative research design was applied, employing the Partial Least Squares Structural Equation Modeling (PLS-SEM) method through SmartPLS 4 software. The study involved 44 participants from both the production and marketing departments. Findings reveal that incentives and leadership significantly impact employee performance, whereas motivation does not. Moreover, only performance demonstrates a significant direct effect on the improvement of sales. The direct influence of incentives, motivation, and leadership on sales was found to be statistically insignificant. Additionally, the mediation analysis indicates that employee performance does not significantly mediate the relationship between the independent variables and sales improvement. The values obtained from R-square, Q-square, F-square, and path coefficient assessments highlight that employee performance plays a central role in enhancing sales outcomes.

References

Adi, R., Bagus, M., & Ambodo, P. (n.d.). UPAH MINIMUM DENGAN KINERJA KARYAWAN PT . WMA ( WIJAYA MANDIRI ABADI ) SURABAYA. 0.

Aisyah, S., Cakranegara, P. A., & Sani, A. (2022). Pengaruh Lingkungan Kerja dan Insentif Terhadap Kinerja Karyawan PT. Capella Medan. Remik, 6(4), 864–874. https://doi.org/10.33395/remik.v6i4.11872

Alinda, K. (2024). Nurturing sustainability practices: a qualitative inquiry into environmental innovations as a catalyst in manufacturing enterprises in an emerging economy. Management & Sustainability: An Arab Review. https://doi.org/10.1108/MSAR-07-2024-0072

Anisah, N., & Puspasari, R. (2024). Sistem Informasi Kuesioner Materi Pembelajaran SMP Swasta Generasi Bangsa Martubung Menggunakan Skala Likert. Jurnal JUREKSI (Jurnal Rekayasa Sistem), 2(2), 604–616.

Anno, E. F. (2025). Effect of Leadership and Management Inefficiencies on Employee Motivation and Engagement in Community-Based Organizations in Turkana, Kenya. IRASS Journal of Arts, Humanities and Social Sciences Abbriviate Title-IRASS J Arts Humanit Soc Sci ISSN, 2(5).

Baawain, A. M., Laachach, A., Jaboob, A. S., & Kankaew, K. (2025). Uncovering the Catalysts of Sustainable Business Performance: Digital Orientation, Entrepreneurial Competency, and Strategic Change. Business Strategy & Development, 8(1), e70070. https://doi.org/10.1002/bsd2.70070

Cattafi, G., Pistolesi, F., & Teti, E. (2025). Unlocking high-growth potential: does intellectual capital efficiency drive European entrepreneurial ventures?. Journal of Small Business and Enterprise Development, 32(1), 173-211. https://doi.org/10.1108/JSBED-03-2024-0113

Conde, R., & Sumlin, C. (2025). Sales controls: a necessary condition perspective. Journal of Business & Industrial Marketing, 40(3), 699-719. https://doi.org/10.1108/JBIM-07-2024-0473

Dahinine, B., Laghouag, A., Bensahel, W., Alsolami, M., & Guendouz, T. (2024). Modelling the combined effect of green leadership and human resource management in moving to green supply chain performance enhancement in Saudi Arabia. Sustainability, 16(10), 3953. https://doi.org/10.3390/su16103953

Friess, M., Alavi, S., Habel, J., & Richter, B. (2024). When sales leaders induce competition among sales employees: a source of motivation or exhaustion?. Journal of Personal selling & sales ManageMent, 44(4), 355-373. https://doi.org/10.1080/08853134.2023.2227385

Guenzi, P., & Nijssen, E. J. (2024). In search of digital solution sellers: the role of non-monetary motivation and empowering leadership behaviors. Journal of Personal selling & sales ManageMent, 44(3), 253-273. https://doi.org/10.1080/08853134.2024.2305496

Hafiz, I. E., & Soleha, E. (2023). Pengaruh Kepemimpinan, Disiplin, dan Motivasi Kerja terhadap Produktivitas Kerja pada Karyawan PT. Timur Raya Karya Mandiri. Inovasi, 10(1), 13. https://doi.org/10.32493/inovasi.v10i1.p13-23.29369

Hidayat, W., Tangisalu, J., & Hasbiyadi, H. (2024). The influence of incentives and leadership support on employee performance: Collectibility target as a mediation variable. Review of Management and Entrepreneurship, 8(1), 85-100. https://doi.org/10.37715/rme.v8i1.4358

Ispiryan, A., Pakeltiene, R., Ispiryan, O., & Giedraitis, A. (2024). Fostering organizational sustainability through employee collaboration: An integrative approach to environmental, social, and economic dimensions. Encyclopedia, 4(4), 1806-1826. https://doi.org/10.3390/encyclopedia4040119

Kalra, A., Singh, R., Badrinarayanan, V., & Gupta, A. (2025). How Ethical Leadership and Ethical Self-Leadership Enhance the Effects of Idiosyncratic Deals on Salesperson Work Engagement and Performance: How Ethical Leadership and Ethical Self-Leadership Enhance the Effects of Idiosyncratic Deals: Kalra et al. Journal of Business Ethics, 196(1). https://doi.org/10.1007/s10551-024-05717-9

Kim, J. S., Park, J. G., & Yoon, S. W. (2024, December). How does leaders' managerial coaching impact followers' in-role and extra-role behaviors? The mediating roles of intrinsic motivation and self-efficacy. In Evidence-based HRM: a Global Forum for Empirical Scholarship (Vol. 12, No. 4, pp. 799-815). Emerald Publishing Limited. https://doi.org/10.1108/EBHRM-05-2023-0107

Kimonyo, T. (2024). The Impact of Employee Experience on Organizational Performance: Driving Innovation, Engagement, and Customer Satisfaction. Kabarak Journal of Research & Innovation, 14(02), 220-229. https://doi.org/10.58216/kjri.v14i02.417

Kirana, A. Y., Saifudin, M., Mukhlisin, M. M., Fatmawati, N., & Ansori, M. I. (2023). Transformasi Digital terhadap Sumber Daya Manusia sebagai Upaya Meningkatkan Kapabilitas Perusahaan. Digital Bisnis: Jurnal Publikasi Ilmu Manajemen Dan E-Commerce, 2(4), 19–36. https://doi.org/10.30640/digital.v2i4.1707

Lussier, B., Schmitt, L., & Bolander, W. (2025). Salesperson social loneliness, ethical behaviors, and performance: a two-wave study. Journal of Marketing Theory and Practice, 1-20. https://doi.org/10.1080/10696679.2025.2550023

Manajemen, P. S. (2023). Analisis Faktor Kompensasi , Lingkungan Kerja Dan Disiplin Kerja Terhadap Kinerja Kerja Pegawai Pada Komplek SDN Margahayu II , VIII Dan XVI Di Kota Bekasi. 3(1), 11622–11636.

Natsir, R., Ramli, M., & Putra, A. H. P. K. (2024). The effect of leadership style, compensation and competence on optimizing organizational performance. Golden Ratio of Human Resource Management, 4(2), 146-157. https://doi.org/10.52970/grhrm.v4i2.510

Necula, S. C., Fotache, D., & Rieder, E. (2024). Assessing the impact of artificial intelligence tools on employee productivity: insights from a comprehensive survey analysis. Electronics, 13(18), 3758. https://doi.org/10.3390/electronics13183758

Parashakti, R. D., & Noviyanti, D. (2021). Pengaruh Motivasi, Lingkungan Kerja, dan Pelatihan Kerja Terhadap Produktivitas Kerja Karyawan. Jurnal Ekonomi Bisnis, Manajemen Dan Akuntansi (JEBMA), 1(2), 127–136.

Rahadi, D. R. (2023). Pengantar Partial Least Squares Structural Equation Model (PLS-SEM) 2023. CV. Lentera Ilmu Madani, Juli, 146.

Rapo, M. (2024). Exploring the Influence of Green HRM Practices on Employee Motivation and Sustainable Performance: A Focus on Organizations in the Service Industry in Tirana. ECONOMICUS, 23(1), 35-55.

Raza, A., & Shaikh, A. U. H. (2024). A Exploring the Nexus of Financial Incentives and Employee Motivation in Financial Sector: A study of Pakistan. Journal of Managerial Sciences, 18(3), 33-55.

Reddy Vangoor, V. K., Shaik, M., Sadhu, A. K. R., & Bonam, V. S. M. (2024). From Data to Decisions: Leveraging AI for Accurate Sales Forecasting in CRM. Journal of Computational Analysis & Applications, 33(8).

Santiago-Torner, C., Corral-Marfil, J. A., Jiménez-Pérez, Y., & Tarrats-Pons, E. (2025). Impact of ethical leadership on autonomy and self-efficacy in virtual work environments: The disintegrating effect of an egoistic climate. Behavioral Sciences, 15(1), 95. https://doi.org/10.3390/bs15010095

Seger Santoso, R. febrianti. (2022). ANALISA PENGARUH INSENTIF TERHADAP PENCAPAIAN TARGET PRODUCT FOCUS PADA VIVA HEALTH Oleh : Seger Santoso Rahayu Febrianti. Jurnal Studia Ekonomika, 20, 82–100.

Sismiati, S., Sulaiman, S., Rudhan, A. M., Nurlela, N., Dema, Y., Darmawansyah, I., ... & Che-Ni, H. (2025). Determination of employee performance: Analysis of leadership, competence, and discipline through employee retention. Jurnal Ilmiah Manajemen Kesatuan, 13(4), 2037-2046. https://doi.org/10.37641/jimkes.v13i4.3305

Syukur, M. A., & Marlianingrum, P. R. (2025). The Effect of Changes in Work Methods, Work Overload and Transactional Leadership on Employee Performance at PT Saku Pos Indonesia with Motivation as an Intervening Variable. International Journal of Business and Applied Economics, 4(3), 1111-1130. https://doi.org/10.55927/ijbae.v4i3.115

Umah, L. M., Syaifulloh, M., Riono, S. B., & Indriyani, A. (2024). The Influence of Competence, Work Environment, and Job Satisfaction on Employee Performance at PT BIG Brebes Regency. IJESSR: International Journal of Economics and Social Sciences Research, 2(3), 1-16.

Waseel, A. H., Zhang, J., Shehzad, M. U., Hussain Sarki, I., & Kamran, M. W. (2024). Navigating the innovation frontier: ambidextrous strategies, knowledge creation, and organizational agility in the pursuit of competitive excellence. Business Process Management Journal, 30(6), 2127-2160. https://doi.org/10.1108/BPMJ-02-2024-0081

Zehra, K., Mirjat, N. H., Shakih, S. A., Harijan, K., Kumar, L., & El Haj Assad, M. (2024). Optimizing auto manufacturing: A holistic approach integrating overall equipment effectiveness for enhanced efficiency and sustainability. Sustainability, 16(7), 2973. https://doi.org/10.3390/su16072973