Education, Work Ability, and Job Stress as Determinants of Employee Productivity in Jakarta’s MSMEs

Salsa Mukminah; Didin Hikmah  Perkasa

doi:10.56209/jommerce.v6i1.227

Authors

Salsa Mukminah Paramadina University, Indonesia
Didin Hikmah Perkasa Paramadina University, Indonesia

DOI:

https://doi.org/10.56209/jommerce.v6i1.227

Keywords:

MSME Productivity, Work Ability, Job Stress, Human Capital Development

Abstract

This study investigates the determinants of employee productivity in Jakarta's Micro, Small, and Medium Enterprises (MSMEs), focusing on the roles of education, work ability, and job stress. As MSMEs contribute approximately 61% to Indonesia's GDP and employ over 97% of the workforce, understanding productivity drivers in this sector is crucial for economic development. Using a quantitative approach, data were collected from 136 MSME owners and employees across various sectors in Jakarta through structured questionnaires. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to analyze the relationships among variables. The findings reveal that work ability exerts the strongest positive influence on productivity (β = 0.473), followed by education (β = 0.257), while job stress negatively affects productivity (β = -0.176). The model explains 30.9% of productivity variance, indicating that practical competencies outweigh formal credentials in determining work performance. These results challenge conventional recruitment practices that prioritize educational qualifications over practical skills. The study provides actionable insights for MSME management to enhance productivity through competency-based hiring, continuous skill development programs, and systematic stress management interventions, ultimately contributing to sustainable business growth in Indonesia's dynamic entrepreneurial ecosystem.

References

Abdelwahed, N. A. A., & Doghan, M. A. A. (2023). Developing Employee Productivity and Performance through Work Engagement and Organizational Factors in an Educational Society. Societies, 13(3),65. https://doi.org/10.3390/soc13030065

Acemoglu, D., Lelarge, C., & Restrepo, P. (2020). Competing with Robots: Firm-Level Evidence from France. AEA Papers and Proceedings, 110, 383–388. https://doi.org/10.1257/pandp.20201003

Ahsan, M. J., & Tahir, M. Z. (2025). Building resilience at work: the role of employee development practices, employee competence and employee mindfulness. Measuring Business Excellence, 29(4), 693-714. https://doi.org/10.1108/MBE-09-2024-0140

Babashahi, L., Barbosa, C. E., Lima, Y., Lyra, A., Salazar, H., Argôlo, M., ... & Souza, J. M. D. (2024). AI in the workplace: A systematic review of skill transformation in the industry. Administrative Sciences, 14(6), 127. https://doi.org/10.3390/admsci14060127

Brynjolfsson, E., Rock, D., & Syverson, C. (2017). Artificial intelligence and the modern productivity paradox: A clash of expectations and statistics (No. w24001). National Bureau of Economic Research. https://doi.org/10.3386/w24001

Cascio, W. F., & Montealegre, R. (2016). How Technology Is Changing Work and Organizations. Annual Review of Organizational Psychology and Organizational Behavior, 3(1), 349–375. https://doi.org/10.1146/annurev-orgpsych-041015-062352

Chen, B., Wang, L., Li, B., & Liu, W. (2022). Work stress, mental health, and employee performance. Frontiers in Psychology, 13, 1006580. https://doi.org/10.3389/fpsyg.2022.1006580

Chopra, S. (2025). The impact of workplace stress on employee productivity and well-being. Journal of Advance Study and Research Work, 8(2), 09-16. https://doi.org/10.5281/zenodo.15745327

Hirschle, A. L. T., & Gondim, S. M. G. (2020). Stress and well-being at work: a literature review. Ciência & Saúde Coletiva, 25, 2721-2736. https://doi.org/10.1590/1413-81232020257.27902017

Karimi, H., & Khawaja, S. (2024). Perspective Chapter: Navigating the Changing Landscape–Innovations and Transformations in Tertiary Education. In Innovation and Evolution in Higher Education. IntechOpen. https://doi.org/10.5772/intechopen.1005389

Kayyali, M. (2025). Aligning Vocational Education With Industry Needs: Successful Partnerships and Practices. In Innovative Approaches in Vocational and Regional Education (pp. 1-48). IGI Global Scientific Publishing. https://doi.org/10.4018/979-8-3693-9496-0.ch001

Kokkinopoulou, E., Vrontis, D., & Thrassou, A. (2025). The impact of education on productivity and externalities of economic development and social welfare: A systematic literature review. Central European Management Journal. https://doi.org/10.1108/CEMJ-04-2024-0124

Le, C. M., Huynh, S. V., Luu, K., Ho, Q.-N. N., Nguyen, V. T. L., & Tran-Chi, V.-L. (2024). Exploring the Interplay between Job Stress, Work Performance, and Attitudes toward Professional Psychological Help among Employees. International Journal of Mental Health Promotion, 26(7), 531–545. https://doi.org/10.32604/ijmhp.2024.050961

Lintang, A. (2023). Pengaruh Beban Kerja dan Stres Kerja terhadap Produktivitas Kerja Karyawan melalui Motivasi Kerja sebagai Variabel Mediasi masa Pandemi Covid-19. Universitas Islam Indonesia. http://dspace.uii.ac.id/123456789/43814

Lokesh, G. R., Harish, K. S., Sangu, V. S., Prabakar, S., Kumar, V. S., & Vallabhaneni, M. (2024, April). AI and the future of work: Preparing the workforce for technological shifts and skill evolution. In 2024 international conference on knowledge engineering and communication systems (ICKECS) (Vol. 1, pp. 1-6). IEEE. 10.1109/ICKECS61492.2024.10616486

Maisyuri, R. S. I., & Ariyanto, E. (2021). The affect of vigor, dedication and absorption on the employee performance at Pt. Mandiri Utama Finance. Dinasti International Journal of Management Science, 2(4), 689-702. https://doi.org/10.31933/dijms.v2i4

Manullang, D. I. M., Yudhyani, E., & Purwaningrum, E. K. (2026). The Effect of Technological Transformation and Work Stress on Organizational Performance with Work Engagement as Mediator. Jurnal Ilmiah Manajemen Kesatuan, 14(1), 1131-1142. https://doi.org/10.37641/jimkes.v14i1.4667

Mardis, M. A., Ma, J., Jones, F. R., Ambavarapu, C. R., Kelleher, H. M., Spears, L. I., & McClure, C. R. (2018). Assessing alignment between information technology educational opportunities, professional requirements, and industry demands. Education and Information Technologies, 23(4), 1547-1584. https://doi.org/10.1007/s10639-017-9678-y

Martini, I. A. O., Gorda, A. A. N. E. S., Gorda, A. A. N. O. S., Sari, D. M. F. P., & Antara, M. E. Y. (2024). Impact of competence development, on work creativity, employee performance, and competitiveness of woven products. Cogent Business & Management, 11(1), 2353136. https://doi.org/10.1080/23311975.2024.2353136

Nguyen, P. T. L., Nguyen, T. B. L., Pham, A. G., Duong, K. N. C., Gloria, M. A. J., Vo, T. V., ... & Phung, T. L. (2021). Psychological stress risk factors, concerns and mental health support among health care workers in Vietnam during the coronavirus disease 2019 (COVID-19) outbreak. Frontiers in public health, 9, 628341. https://doi.org/10.3389/fpubh.2021.628341

Phong, C. T., Point, S., & Huong, D. T. (2025). Nurturing the soul at work: Spiritual values and psychological well-being in Vietnamese companies. Human Resource Development International, 1-23. https://doi.org/10.1080/13678868.2025.2549549

Rahimi, R. A., & Oh, G. S. (2024). Rethinking the role of educators in the 21st century: navigating globalization, technology, and pandemics. Journal of Marketing Analytics, 12(2), 182-197. https://doi.org/10.1057/s41270-024-00303-4

Ramadhani, R. (2018). Pendidikan dan Kemampuan Kerja Terhadap Produktivitas Kerja Pegawai di Kantor Kecamatan Babulu Kabupaten Penajam Paser Utara. Universitas Mulawarman, 6(4), 2069–2080.

Rasyid, A., Mansur, M., Ibrahim, M., Zakaria, Z., Aronggear, O. S., & Irawan, A. (2025). The effect of emotional intelligence on employee performance through work ability as a mediating variable. Jurnal Ilmiah Manajemen Kesatuan, 13(3), 1769-1780. https://doi.org/10.37641/jimkes.v13i3.3263

Shrivastava, N., Tiwari, N., Thangavel, E., Verma, A., & Srivastava, T. (2023). Impact of work-related stress on employee productivity. Scholars Bulletin, 9(08), 108-113. https://doi.org/10.36348/sb.2023.v09i08.004

Siroros, M., Yodmongkol, P., Chernbumroong, S., Pratumta, T., & Suksao, S. (2025, January). Developing a Social Skills-Based Framework to Foster Workforce Resilience and Adaptability. In 2025 Joint International Conference on Digital Arts, Media and Technology with ECTI Northern Section Conference on Electrical, Electronics, Computer and Telecommunications Engineering (ECTI DAMT & NCON) (pp. 131-134). IEEE. 10.1109/ECTIDAMTNCON64748.2025.10962058

Sonnentag, S., Tay, L., & Nesher Shoshan, H. (2023). A review on health and well‐being at work: More than stressors and strains. Personnel Psychology, 76(2), 473-510. https://doi.org/10.1111/peps.12572Digital Object Identifier (DOI)

Sutarman, A., Kadim, A., & Garad, A. (2024). The Effect of Competence and Organizational Commitment on Work Productivity of Indonesian Manufacturing Industries. International Journal of Technology, 15(5), 1449. https://doi.org/10.14716/ijtech.v15i5.5775

Trenerry, B., Chng, S., Wang, Y., Suhaila, Z. S., Lim, S. S., Lu, H. Y., & Oh, P. H. (2021). Preparing workplaces for digital transformation: An integrative review and framework of multi-level factors. Frontiers in psychology, 12, 620766. https://doi.org/10.3389/fpsyg.2021.620766

Zysman, J., & Costinot, A. (2022). The influence of work discipline and workload on employee performance (study on community empowerment for helath service employees at california district). Medalion Journal: Medical Research, Nursing, Health and Midwife Participation, 3(1), 19-32. 10.59733/medalion.v3i1.15