​Service-Oriented HR Practices and Service Performance in Borobudur Tourism MSMEs: Employee Engagement as Mediator

Abstract

This study examines the relationships between Service-Oriented Human Resource Management (SOHRM), employee engagement, and service performance among tourism MSMEs around Borobudur. A cross-sectional questionnaire survey provided 380 valid responses obtained through purposive sampling. The relationships were assessed using Partial Least Squares Structural Equation Modeling (PLS-SEM). SOHRM was positively associated with employee engagement (β = 0.527, p < 0.001) and service performance (β = 0.159, p = 0.001). Engagement was also associated with service performance (β = 0.525, p < 0.001). The indirect association through engagement was significant (β = 0.277, p < 0.001), consistent with partial mediation. The cross-sectional design, self-reported data, and non-probability sampling limit causal interpretation and generalization. SOHRM had an average variance extracted of 0.467, below the conventional convergent-validity threshold, and four initial indicators were excluded. Service-oriented Human Resources (HR) practices were related to service performance directly and through employee engagement. This study connects the ability–motivation–opportunity and job demands–resources perspectives with service provision in heritage-tourism MSMEs. This study identifies an engagement-related pathway in smaller tourism enterprises while showing the need for further validation of the reduced SOHRM measure.

Keywords

Employee Engagement Service-Oriented Human Resource Management Service Performance Tourism MSMEs