The Effect of Competence, Transformational Leadership, Rewards, and Punishments on Sustainability Employee Performance, Moderated By Work Facilities in 4PL Companies

Abstract

Sustainable employee performance is increasingly important for logistics companies operating in dynamic and highly competitive business environments. PT CAS, a Fourth-Party Logistics (4PL) company, has experienced declining employee performance, highlighting the need to identify organizational and human resource factors that support long-term performance sustainability. This study aims to examine the effects of employee competence, transformational leadership, and reward and punishment on sustainable employee performance and to investigate the moderating role of workplace facilities. A quantitative explanatory research design was employed involving all 159 employees of PT CAS through census sampling. Data were collected using a structured questionnaire with a five-point Likert scale and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results demonstrate that employee competence (? = 0.331; p < 0.001), transformational leadership (? = 0.201; p = 0.002), and reward and punishment (? = 0.155; p = 0.015) positively and significantly affect sustainable employee performance. Employee competence emerged as the strongest predictor. Workplace facilities did not significantly moderate these relationships; however, they had a positive direct effect on sustainable employee performance (? = 0.148; p = 0.022). The study concludes that sustainable employee performance in 4PL companies is primarily strengthened through employee competence, transformational leadership, and consistent reward and punishment practices, while adequate workplace facilities provide direct performance support.