The Effect of Digital Work Competency, Employee Agility, and Reward on Work Innovation and Employee Performance at a Manufacturing Company

Abstract

This study aims to analyze the effect of digital work competency, employee agility, and reward on work innovation and employee performance at manufacturing company. A quantitative explanatory design was applied to test the proposed relationships among variables. The population consisted of 308 employees, and 77 respondents were selected using the Slovin formula. Data were collected through a Likert-scale questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The results show that digital work competency, employee agility, and reward have positive and significant effects on both work innovation and employee performance. Work innovation also has a positive and significant effect on employee performance and represents the strongest path in the model. These findings indicate that employee performance can be strengthened through an integrated human resource strategy that combines digital competency development, agile work behavior, fair reward systems, and an innovation-oriented work climate.