The Importance of Money in Shaping Employee Intention to Stay In Small Businesses: The Moderating Roles of Growth Mindset and Caring Climate
Employee retention is a critical challenge for small and medium enterprises (SMEs), particularly in developing economies like Indonesia, where financial constraints and high turnover rates jeopardize organizational stability. This study investigates the relationship between monetary importance and i...
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| Format: | Article |
| Language: | Indonesian |
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Universitas 17 Agustus 1945 (UNTAG) Semarang
2025-01-01
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| Series: | Media Ekonomi dan Manajemen |
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| Online Access: | https://jurnal.untagsmg.ac.id/index.php/fe/article/view/5529 |
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| author | Martinus Parnawa Putranta Russel P.J. Kingshott Debora Wintriarsi Handoko Theresia Agung Maryudi Harsiwi |
| author_facet | Martinus Parnawa Putranta Russel P.J. Kingshott Debora Wintriarsi Handoko Theresia Agung Maryudi Harsiwi |
| author_sort | Martinus Parnawa Putranta |
| collection | DOAJ |
| description | Employee retention is a critical challenge for small and medium enterprises (SMEs), particularly in developing economies like Indonesia, where financial constraints and high turnover rates jeopardize organizational stability. This study investigates the relationship between monetary importance and intention to stay, moderated by caring climate and growth mindset. Using purposive sampling, data were collected through an online survey from 198 employees of small businesses in Central Java, all of whom had worked for their organizations for at least one year. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed hypotheses. The results revealed that monetary importance did not have a significant direct effect on intention to stay. However, caring climate positively moderated this relationship, enhancing retention through a supportive and empathetic workplace environment. In contrast, growth mindset negatively moderated the relationship, suggesting that employees with a strong growth orientation prioritize non-financial motivators such as professional development opportunities. These findings highlight the importance of tailoring retention strategies to individual and contextual factors, combining financial incentives with non-monetary approaches. This study contributes to the literature on retention strategies by integrating organizational and psychological perspectives within the SME context. |
| format | Article |
| id | doaj-art-ebe5f5d8b6404c04a132ce4fc61fe1b4 |
| institution | Kabale University |
| issn | 0854-1442 2503-4464 |
| language | Indonesian |
| publishDate | 2025-01-01 |
| publisher | Universitas 17 Agustus 1945 (UNTAG) Semarang |
| record_format | Article |
| series | Media Ekonomi dan Manajemen |
| spelling | doaj-art-ebe5f5d8b6404c04a132ce4fc61fe1b42025-01-20T07:46:15ZindUniversitas 17 Agustus 1945 (UNTAG) SemarangMedia Ekonomi dan Manajemen0854-14422503-44642025-01-0140123024510.56444/mem.v40i1.55291997The Importance of Money in Shaping Employee Intention to Stay In Small Businesses: The Moderating Roles of Growth Mindset and Caring ClimateMartinus Parnawa Putranta0Russel P.J. Kingshott1Debora Wintriarsi Handoko2Theresia Agung Maryudi Harsiwi3Scopus ID [36659691000] Universitas Atma Jaya YogyakartaFaculty of Business and Law, Curtin University, PerthFaculty of Business and Economics Atma Jaya University YogyakartaFaculty of Business and Economics Atma Jaya University YogyakartaEmployee retention is a critical challenge for small and medium enterprises (SMEs), particularly in developing economies like Indonesia, where financial constraints and high turnover rates jeopardize organizational stability. This study investigates the relationship between monetary importance and intention to stay, moderated by caring climate and growth mindset. Using purposive sampling, data were collected through an online survey from 198 employees of small businesses in Central Java, all of whom had worked for their organizations for at least one year. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed hypotheses. The results revealed that monetary importance did not have a significant direct effect on intention to stay. However, caring climate positively moderated this relationship, enhancing retention through a supportive and empathetic workplace environment. In contrast, growth mindset negatively moderated the relationship, suggesting that employees with a strong growth orientation prioritize non-financial motivators such as professional development opportunities. These findings highlight the importance of tailoring retention strategies to individual and contextual factors, combining financial incentives with non-monetary approaches. This study contributes to the literature on retention strategies by integrating organizational and psychological perspectives within the SME context.https://jurnal.untagsmg.ac.id/index.php/fe/article/view/5529importance of money, intention to stay, caring climate, growth mindset, small business, employee retention |
| spellingShingle | Martinus Parnawa Putranta Russel P.J. Kingshott Debora Wintriarsi Handoko Theresia Agung Maryudi Harsiwi The Importance of Money in Shaping Employee Intention to Stay In Small Businesses: The Moderating Roles of Growth Mindset and Caring Climate Media Ekonomi dan Manajemen importance of money, intention to stay, caring climate, growth mindset, small business, employee retention |
| title | The Importance of Money in Shaping Employee Intention to Stay In Small Businesses: The Moderating Roles of Growth Mindset and Caring Climate |
| title_full | The Importance of Money in Shaping Employee Intention to Stay In Small Businesses: The Moderating Roles of Growth Mindset and Caring Climate |
| title_fullStr | The Importance of Money in Shaping Employee Intention to Stay In Small Businesses: The Moderating Roles of Growth Mindset and Caring Climate |
| title_full_unstemmed | The Importance of Money in Shaping Employee Intention to Stay In Small Businesses: The Moderating Roles of Growth Mindset and Caring Climate |
| title_short | The Importance of Money in Shaping Employee Intention to Stay In Small Businesses: The Moderating Roles of Growth Mindset and Caring Climate |
| title_sort | importance of money in shaping employee intention to stay in small businesses the moderating roles of growth mindset and caring climate |
| topic | importance of money, intention to stay, caring climate, growth mindset, small business, employee retention |
| url | https://jurnal.untagsmg.ac.id/index.php/fe/article/view/5529 |
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