The Influence of Organizational Support and Work Engagement on Employee Performance with Work Loyalty as an Intervening Variable Among Employees of the Batik Satrio Manah Umkm Center

Employee performance in the MSME sector is a crucial factor for business sustainability, yet in practice often faces challenges such as limited organizational support, suboptimal work engagement, and fluctuating employee loyalty. This study aims to analyze the influence of organizational support and work engagement on employee performance, with work loyalty as an intervening variable, among employees of the Batik Satrio Manah MSME Center. A quantitative research approach with a survey design was employed. The research sample consisted of 52 employees of the Batik Satrio Manah MSME Center, selected using a total sampling technique. Data analysis was conducted using PLS-SEM. The findings indicate that: organizational support has a positive and significant effect on employee performance; work engagement has a positive and significant effect on employee performance; organizational support does not significantly affect employee performance through work loyalty; and work engagement significantly affects employee performance through work loyalty. These findings highlight the importance of human resource management strategies in MSMEs with a focus on enhancing employee engagement. Work loyalty is proven to strengthen the impact of engagement on performance; therefore, MSMEs need to foster a supportive work environment, increase recognition of employee contributions, and develop performance-based reward systems to sustain competitiveness and ensure long-term business sustainability.