THE ROLE OF JOB SATISFACTION IN MEDIATING THE INFLUENCE OF WORK ENVIRONMENT AND WORK MOTIVATION ON EMPLOYEE PERFORMANCE AT AGUNG BALI SOUVENIRS IN BADUNG BALI Volume: 6 Number: 3 Page: 441 - 461 Article History: Received: 2025-02-13 Revised: 2025-03-10 Accepted: 2025-05-15 I Gusti Ayu Inten Miranti ARIMBAWA1. Ni Luh Putu INDIANI2. Ida Ayu SURASMI3 1,2,3Master of Management Postgraduate Program Warmadewa University. Indonesia Corresponding author: I Gusti Ayu Inten Miranti Arimbawa E-mail: miranti. arimbawa@gmail. Abstract: Bali is one of the islands that, along with the increase in tourist visits, needs to develop several facilities to meet the needs of tourists when they visit. One of them is Souvenirs. Souvenirs are a very important aspect, particularly when viewed from the perspective of Bali as a tourist destination. Selling souvenirs is a promising business opportunity, given the interest and allocation of domestic tourist funds for souvenirs. With the numerous souvenir centers in Bali, ranging from traditional to modern, that sell souvenirs, they must compete with their competitors to improve their human resources and achieve good performance, ultimately meeting company goals. Therefore, it is essential to research to analyze the factors that influence employee satisfaction and performance, thereby supporting performance results and achieving company goals. This study aims to analyze the role of job satisfaction in mediating the influence of work environment and work motivation on employee performance at Agung Bali Oleh-oleh in Badung Bali. The population of this study consisted of all employees working at Agung Bali Oleh-oleh, located in Badung. Bali. The sample used was 70 respondents from employees working at Agung Bali OlehOleh. The data collection method was a questionnaire. The analysis technique used to answer the hypothesis was inferential analysis using Partial Least Square (PLS). Keywords: Work Environment. Work Motivation. Job Satisfaction and Employee Performance INTRODUCTION Bali is one of the islands that, along with the increase in tourist visits, needs to develop several facilities to meet the needs of tourists when they visit. Referring to the Results of the Foreign Tourist Behavior Survey (Superwisma. conducted by the Bank Indonesia Bali Representative Office, foreign tourist spending in the 2015 period was for accommodation at 26. 69, food and drink at 53% and shopping at 14. 80%, followed by other expenditure compositions such as sightseeing and so on. Tourists come to Bali, in addition to enjoying the natural beauty, also engage in shopping activities to purchase souvenirs. According to Arcana et al. , one of the purposes for which money is used during the trip is to buy souvenirs. Shopping is in second place with a percentage of 5%, after sight-seeing with a percentage of 50. In addition to shopping, which is the most common activity carried out by domestic tourists in Bali after Sightseeing, the allocation of domestic tourist spending for purchasing souvenirs also takes second place. Shopping is the second most popular tourist attraction for domestic tourists visiting Bali, and tourists allocate a significant portion of their funds to purchase souvenirs. Souvenirs are very important in Bali as a tourist destination. selling souvenirs is a promising business opportunity, given the interest and allocation of funds from domestic tourists for souvenirs, as indicated in the This open-access article is distributed under a Creative Commons Attribution (CC-BY-NC) 4. 0 license available data. Thus, the local community's economic conditions can improve by selling souvenirs. Shopping centers have the second-highest percentage, after holiday recreation facilities, at 21. while holiday recreation facilities have a percentage of 52. At the same time, rest facilities are 6%, monuments 5. 3%, sports recreation facilities 4. 9%, others 4. 6% and handicrafts 2. From the data above, it is evident that many domestic tourists shop while on vacation in Bali. Now, shopping centers, particularly souvenir centers in Bali, are diverse and widely spread, ranging from traditional to modern souvenir centers. Shopping activities are the type of activity or tourist attraction that is most in demand by domestic tourists when visiting Bali after sightseeing (Anggriewan et al. , 2. One of the Bali souvenir centers that tourists often visit is Agung Bali Oleh-Oleh. Many tourists visit this Bali souvenir center because the marketing carried out by Agung Bali Souvenirs has reached overseas. Additionally, the products available are quite comprehensive, with standard prices, and various discounts are also offered, which can attract many tourists. Agung Bali souvenirs are located at Jl Dewi Sri No. Legian. Kec. Kuta. Badung Regency. The products sold by Agung Bali Souvenirs are typical Balinese souvenir items, consisting of various kinds of souvenirs or knickknacks made by local artisans, such as key chains, carved statues, and a range of clothing items, including t-shirts, house dresses, and others, all featuring a Balinese island theme. With the increasing number of new Balinese souvenirs, of course. Agung Bali Balinese souvenirs must be able to improve human resources by paying attention to job satisfaction and employee performance in order to face increasingly competitive competition if employees can work comfortably in their work environment and also have the motivation to progress, develop and be creative in providing interesting ideas for the company and also feel satisfied in working, then employees will be able to provide good performance for the company and the impact will be able to increase profits for the To assess employee performance, the following table provides data on sales turnover at Agung Bali from 2021 to 2023. Table 1. Total Sales Turnover Agung Bali 2021-2023 Years Amount Average Sales Turnover (R. Increase/Decrease in Sales (R. Percentage Increase (%) . 3,72 1,86 Table 1 shows that the average turnover rate for the last three years is 1. 86%, and it has decreased annually. It suggests that employee performance is not optimal, which has contributed to a decrease in turnover at Agung Bali over the past three years. It is because based on interviews with several employees at Agung Bali, it is due to an unconducive work environment due to gaps between employees, poor teamwork, and comfort in several workrooms that are not optimal, such as, for example, the arrangement of clothing stock that is piled up untidily according to place and size which makes employees confused when serving customers to choose the desired clothing size, employee motivation that always decreases. After all, they do not receive direction from management to develop and provide creative ideas to advance Agung Bali, and employees feel dissatisfied with their work because of job descriptions that are not suitable for the tasks they are assigned, often requiring them to work concurrently. Additionally, pressure on management to ensure employees meet monthly sales turnover targets must be addressed. In addition, based on interviews with several visitors who shop, there are many complaints about the service provided by This open-access article is distributed under a Creative Commons Attribution (CC-BY-NC) 4. 0 license employees to customers, which is caused by the influence of the work environment and poor employee motivation, causing employee satisfaction to decrease and have an impact on the service provided and leading to a decrease in employee performance causing a decrease in revenue turnover at Agung Bali souvenirs. These problems are what causes a decrease in customers visiting Agung Bali Souvenirs, which has an impact on the company's turnover. According to Yanuari . , performance is the result of a process that refers to and is measured over a certain period based on previously established provisions or agreements. Performance is the result of work and work behavior that has been achieved in completing tasks and responsibilities given in a certain period (Lesmana & Damanik, 2. According to Salsabilla and Suryawan . , several factors that influence employee performance include motivation, job satisfaction, and work environment. The quality of superior-subordinate interactions can be excellent, and with good organizational support, employees will reciprocate by behaving and participating more actively in the company. It is the meaning of a work environment where, if the interaction between employees has been established very well, it can have a positive effect on improving employee performance. The Grand Theory in this study is the Social Exchange Theory. Social exchange theory is one of the most influential theories for understanding behavior in a company (Cropanzano and Mitchell, 2. The main components of social exchange theory, involving perceptions of the quality of superior-subordinate interactions and perceptions of organizational support, are the views that employees who have been treated well by their organization will tend to reciprocate by behaving and participating more in the organization (Blau. Blau's social exchange theory . posits that the basic nature of social exchange relationships, specifically the obligations and basis for measuring the contributions of each party, is not clearly defined. Job satisfaction also affects employee performance. Job satisfaction is a reflection of an individual's feelings and attitudes towards what they have received from the company. Job satisfaction is a pleasant or unpleasant emotional state with which employees view their work (Saputra, 2. The success of a company is also greatly influenced by how the company achieves employee job satisfaction. Solihatun et al. stated that job satisfaction is a pleasant or positive emotional state that can be generated based on the results of a person's job assessment or work Rahayu and Aprianti . stated that job satisfaction is a set of an employee's feelings about whether their work is pleasant or not. This statement is also supported by previous research related to the effect of job satisfaction on employee performance conducted by Feri et al. Hidayat . Agustinah et al. Nurhidayati & Anggraini . and Ritongga & Bahri . which stated that job satisfaction has a positive and significant effect on employee performance. The work environment also affects employee performance, as evidenced by the results of research conducted by Aolisso and Lao . and Yuliantari and Prasasti . The work environment is one of the important factors in creating employee performance. Because the work environment has a direct impact on employees' ability to complete their work, which ultimately improves organizational performance. According to Sedarmayanti . , the work environment is divided into two, namely, the physical work environment and the non-physical work environment. The physical work environment encompasses all the physical conditions surrounding the workplace that can impact employees. The physical work environment comprises several indicators, including lighting, temperature, humidity, air circulation, noise, cleanliness, vibration, color schemes, makeup, and safety in the workplace. The non-physical work environment refers to the environment surrounding employees, encompassing work relationships, including those with superiors and This statement is also supported by previous research related to the influence of the work This open-access article is distributed under a Creative Commons Attribution (CC-BY-NC) 4. 0 license environment on employee performance conducted by Solihatun et al. Ritongga & Bahri . Uma & Swasti . Susanti et al. and Marcelia et al. which stated that the work environment has a positive and significant effect on employee performance. This differs from the research conducted by Bague et al. Nurhidayati & Anggraini . , and Suhartono et al. , which stated that the work environment has no significant effect on employee performance. Based on the results of this study, a research gap remains regarding the influence of the work environment on employee performance. Work motivation factors can also impact employee performance and job satisfaction, as evidenced by research conducted by Susanti et al. and Yuliantini & Santoso . The primary indicator that a person needs to achieve a certain goal is how to cultivate their motivation. They can fulfill their needs and desires through effort and hard work. Motivation is a drive that grows within a person. Both from within and from outside themselves to do a job with high enthusiasm using all the abilities and skills they have to achieve organizational goals (Hidayat. This is in accordance with previous research related to the effect of work motivation on employee performance conducted by Yanuari . Suhartono et al. Salsabila & Suryawan . and Talashina & Ngatno . which stated that work motivation has a positive and significant effect on employee performance. Different from research conducted by Marcelia et al. Susanti et al. and Agustinah et al. , which states that work motivation does not have a significant effect on employee performance. Based on the results of this study, a research gap remains regarding the effect of work motivation on employee performance. Based on the theoretical and empirical studies presented, it is essential to conduct further research with the title "Analysis of the Influence of Work Environment and Work Motivation on Employee Performance Mediated by Job Satisfaction at Agung Bali Souvenir Shop. Work Environment. The work environment encompasses everything surrounding the worker and has an impact on the implementation of assigned tasks (Fitriani et al. , 2. The better a person's work environment, the better their work performance will be. According to Farizki . , the work environment is also a factor in determining the suitability of the work environment. this can be seen in the time required to complete the workload. Of course, both good and bad work environments can speed up or slow down a person's work process. The non-physical work environment, which involves the development of relationships among employees, between employees and superiors, and between employees and subordinates, can create a positive work environment that has a significant impact on employee performance within the Company (Fitri & Ferdian, 2. According to Sedarmayanti . , work environment indicators are as follows: Lighting Includes sufficient light entering each employee's workspace, which affects the working conditions of each employee. The air temperature here refers to the level of air temperature in each employee's workspace. Correct air temperature settings in the workspace provide employees with comfort while they . Noise refers to the sensitivity of employees to sounds in the workplace, which can impact their productivity and activities. Use of color, including choosing the right color for each employee's workspace . The space needed is the process of arranging work positions between employees, including work aids such as tables and chairs. Workability encompasses conditions that provide a sense of security and calm, enabling each employee to carry out their work effectively. This open-access article is distributed under a Creative Commons Attribution (CC-BY-NC) 4. 0 license . Employee relations with other employees help create harmonious relationships, which in turn can benefit the company in its efforts to achieve organizational goals. Rivalita and Ferdian . explain that non-physical work environment indicators include: Relationship with co-workers. The relationship between employees and coworkers can be strengthened through effective communication, enabling them to resolve work-related . Responsibility of superiors, functions carried out by superiors. Superiors who are responsible for their duties and authorities who are fair to all employees so that there is no gap between employees in the selection of a job that is done. Safety system, namely a program that identifies whether each employee feels safe at work. Work safety is very necessary for each employee to back up employees from work accidents or work errors made by the employee himself Based on the theory and several previous researchers, the following hypotheses are H1: The work environment has a positive and significant effect on job satisfaction H2: The work environment has a positive and significant effect on employee performance. Work Motivation. Pariesti et al. define work motivation as a condition that influences the generation, direction and maintenance of behavior related to the work environment. Motivation is defined as a driver or drive within humans that can generate, direct and organize behavior. Motivation is another meaning of the drive to do something. Motivation is a driver for individuals and organizations to take action because there is a target or goal to be achieved (Bague et al. , 2. The core of Maslow's theory is that human needs are composed of a hierarchy. The lowest level of need is physiological needs, and the highest is the need for self-actualization. Robbins and Judge . are described in a hierarchy of five basic human needs according to Maslow, namely: Physiological needs (Physiological need. , including hunger, thirst, shelter, sexual and other physical needs. Safety needs (Security or safety need. , including the desire to be protected from physical and emotional danger. Social needs (Affiliation or acceptance need. , including feelings of affection, belonging, acceptance and friendship. Esteem needs include internal rewards, such as self-respect, autonomy, and achievement, as well as external reward factors, including status, recognition, and attention. Self-actualization needs (Also Known as Needs for self-actualizatio. refer to the drive to become one's best self, utilizing one's abilities to achieve growth, reach one's potential, and experience self-fulfillment. In Hasibuan's research . , five indicators were used to measure employee work motivation as follows. Physical needs. That is where humans need motivation within themselves to achieve what they These physical needs can be met through decent employee salary payments, bonuses, overtime pay, and allowances, such as food and transportation expenses. The need for safety and security. In this instance, an organization must provide its employees with safe and comfortable work facilities. These facilities can include work safety guarantees, pension funds, and other necessary safety equipment for the workplace. This open-access article is distributed under a Creative Commons Attribution (CC-BY-NC) 4. 0 license . Social needs. That is a need that someone fulfills through interaction with another person. This interaction takes the form of establishing friendships, being accepted by someone or an individual in a group, and having the desire to be loved and to love in return. The need for appreciation according to their abilities. That is something related to recognition from others for a work achievement that has been accomplished. It is akin to the desire of employees to be respected and appreciated by their superiors for the achievements they have This recognition will encourage or motivate employees to work. Based on the theory and several previous researchers, the following hypothesis is formulated: H2: Work motivation has a positive and significant effect on job satisfaction H3: Work motivation has a positive and significant effect on employee performance. Job Satisfaction. Job satisfaction can reflect a person's feelings about the work they do. According to Priansa . , job satisfaction is the general attitude of an individual toward their Job satisfaction can also be interpreted as a feeling that supports or does not support the employee in relation to their work and their condition (Mangkunegara, 2. According to Luthans . , job satisfaction is the result of employee perceptions of how well their work provides what is considered important. According to Jackson & Mathis . , job satisfaction is a positive emotional state that is the result of evaluating a person's work experience. Sutrisno . states that job satisfaction is a pleasant or unpleasant emotional state that employees experience when viewing their work. Job satisfaction indicators according to Sunarta . , indicators of job satisfaction, namely: The work itself is the main source of satisfaction, as it provides interesting tasks that facilitate employee progress. Salary, which is financial compensation that is in accordance with the workload. The promotion is an opportunity for employees to advance and take on greater responsibility within the company, including opportunities for advancement, promotions, awards, training and self-development. Supervision is the ability of leaders to provide attention and technical assistance and treat their subordinates well. Co-workers, namely co-workers who are easy to work with and support each other in the work Based on the theory and several previous researchers, the following hypothesis is formulated: H5: Job satisfaction has a positive and significant effect on employee performance. Employee Performance. According to Maamari and Saheb . 8: . , employee performance can be defined as activities that are officially recognized as part of the job and contribute to the organization's goals. There are two dimensions of performance: the action dimension, known as the behavioral aspect, and the outcome dimension, known as the performance aspect. The behavioral aspect of performance is considered consistent with the work situation and job specifications, which then becomes a means to achieve the organization's goals and objectives, namely, the outcome dimension or performance aspect. Performance is the result of work that is qualitatively and quantitatively achieved by an employee in carrying out his duties in accordance with the responsibilities given to him (Mangkunegara, 2019:. Performance is said to be good and satisfactory if the goals achieved are in accordance with the standards that have been set. Meanwhile, according to Robbins . , performance is a function of the interaction between ability, motivation, and opportunity. In this study, performance can be measured based on the following indicators (Robbins & Judge, 2017:. This open-access article is distributed under a Creative Commons Attribution (CC-BY-NC) 4. 0 license . Work quality refers to the quality of employee work results that are aligned with the company's established standards and provisions. The minimum level of error in work results also indicates work quality. Work quantity is the amount of work results of an employee when associated with company . Timeliness, specifically being able to complete tasks on time and maximizing the available time for other activities. Cost-effectiveness is the level at which organizational resources, such as humans, finances, technology, and raw materials, can be maximized in the sense of obtaining the highest profit or reducing losses arising from each unit or example of the use of an existing resource. Interpersonal relationships are the level at which an employee can develop feelings of mutual respect, goodwill, and cooperation between themselves and other employees, as well as with Based on the theory and several previous researchers, the following hypothesis is formulated: H6: Job satisfaction mediates the relationship between the work environment and employee H7: Job satisfaction mediates the influence of work motivation on employee performance. The research's conceptual framework is described as follows. Figure 1. Research Framework METHODS Research will be conducted at Agung Bali Souvenirs in Badung Bali. It is based on the fact that Bali Island is one of the islands that, along with the increase in tourist visits to Bali, requires several facilities to be developed that can facilitate and meet the needs of tourists when visiting. One of them is Souvenirs. Souvenirs are very important. When viewed from Bali as a tourist destination, selling souvenirs is a promising business opportunity, given the interest and allocation of domestic tourist funds for souvenirs. With the numerous souvenir centers in Bali, ranging from traditional to modern, that sell souvenirs, they must compete with their competitors to improve their human resources and achieve good performance, ultimately meeting company goals. The population in this study consisted of all employees working at Agung Bali Souvenirs, totaling 70 individuals. The determination of the sample used in this study was the census/total sampling method. Sugiyono . explained that census/total sampling is a sampling technique where all members of the population are used as respondents. The respondents in this study comprised a population of 70 The data collection method employed is a survey method, utilizing a questionnaire. The This open-access article is distributed under a Creative Commons Attribution (CC-BY-NC) 4. 0 license statement items are measured using a Likert scale using five numbers from 1 . trongly disagre. to 5 . trongly agre. The data analysis technique employed is inferential analysis, which is used to examine the relationship between the variables studied in this study: work environment, work motivation, job satisfaction, and employee performance. RESULT AND DISCUSSION Validity and Reliability Test. Table 2 shows that all research instruments for research variables have met the validity test requirements, where the total Pearson Correlation score for each instrument is above 0. 30 and has a significance value of less than 5% . , so the instrument is suitable for use as a measuring tool for the variables studied (Ghozali, 2018: . Table 2. Validity Result Variables Work Work motivation Job satisfaction Employee Question Items X1. X1. X1. X1. X1. X1. X1. X2. X2. X2. X2. X2. X2. X2. Y2. Y2. Y2. Y2. Y2. Y2. Y2. Y1. Y1. Y1. Y1. Y1. Y1. Y1. Correlation Significance 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 Information Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid The results of the reliability test in Table 3 show that the reliability test of Cronbach's Alpha value for each variable is above 0. 60, so all instruments have met the reliability requirements. Table 3. Reliability Result Variables Work environment Work motivation Cronbach's Alpha Information Reliable Reliable This open-access article is distributed under a Creative Commons Attribution (CC-BY-NC) 4. 0 license Job satisfaction Employee performance Reliable Reliable Hypothesis. Table 4. Hypotheses Result Work Environment (X. -> Job Satisfaction (Y. Work Environment (X. -> Employee Performance (Y. Job Satisfaction (Y. -> Employee Performance (Y. Work Motivation (X. -> Job Satisfaction (Y. Work Motivation (X. -> Employee Performance (Y. Work Environment (X. -> Job Satisfaction (Y. > Employee Performance (Y. Work Motivation (X. -> Job Satisfaction (Y. -> Employee Performance (Y. Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) T Statistics (|O/STDEV P Values 1,717 3,665 Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) T Statistics (|O/STDEV P Values 1,597 Table 4 shows that: The work environment has a positive effect of 0. 149 on job satisfaction, and the relationship is not significant . -value> 0. , as the t-statistic value is smaller than 1. 96, which is 1. The work environment has a positive effect of 0. 142 on employee performance, and the relationship is significant at p < 0. 05, with a t-statistic value of 2. 133, which is greater than 1. Job satisfaction has a positive effect of 0. 105 on employee performance, and the relationship is not significant 0. 087 > 0. 05, and the t-statistic value is smaller than 1. 96, which is 1. Work motivation has a positive effect of 0. 448 on job satisfaction, and the relationship is significant at 0. 000 < 0. 05, and the t-statistic value is greater than 1. 96, which is 3. Work motivation has a positive effect of 0. 763 on employee performance, and the relationship is not significant . < 0. , as the t-statistic value is greater than 1. 96, which is 14. The work environment, as measured by job satisfaction, has a positive effect of 0. the relationship is not significant, as the p-value of 0. 382 is greater than 0. 05, indicating no This open-access article is distributed under a Creative Commons Attribution (CC-BY-NC) 4. 0 license significant impact on employee performance. It means that job satisfaction does not act as a mediating variable between the influence of the work environment on employee performance. Work motivation through job satisfaction has a positive effect of 0. 051, but the relationship is not significant . = 0. 111> 0. on employee performance. It means that job satisfaction does not act as a mediating variable between the influence of work motivation on employee performance. The Influence of Work Environment on Job Satisfaction. Based on the test analysis results regarding the influence of the work environment on job satisfaction, it is evident that the work environment has a positive effect on job satisfaction. however, the relationship is not statistically significant, as the significance value is above 0. It means that the better the employee's work environment, the greater the increase in job satisfaction. however, the increase is not statistically It is because other factors can increase employee job satisfaction, as a comfortable or uncomfortable environment does not necessarily affect employee satisfaction. Another factor that can impact employee satisfaction is the characteristics of the respondents, who are predominantly aged 20-30 years. It was found that employee job satisfaction can be increased when the salary given exceeds the UMR, as at that age, it is a consumptive age to purchase various goods in order to fulfill their desires. The work environment, in general, means a place where employees carry out their work activities. In the workplace, no one can be separated from their environment. Optimizing a person's performance can also be influenced by the work environment. The work environment encompasses everything surrounding the worker and has an impact on the implementation of assigned tasks (Fitriani et al. , 2. This study is in line with the research conducted by Waworundeng et al. , research stated that the work environment does not have a significant effect on employee job satisfaction at PT Wenang Cemerlang Pas and Daryanto et al. also in their research stated that the work environment does not have a significant effect on job satisfaction at PT ABC. In contrast to the research that found a positive relationship between the work environment and job satisfaction, the research conducted by Bague et al. in their research stated that the work environment has a positive and significant effect on the job satisfaction of employees at Bank Mandiri KC Pare-pare. Solihatun et al. also stated in their research that the work environment has a positive and significant effect on job satisfaction of employees of PT Herba Emas Wahidatama. Nurhidayati & Anggraini . also in their research stated that the work environment has a positive and significant effect on job satisfaction of employees of PT Bank BRI Syariah in Jombang Regency. The Influence of Work Environment on Employee Performance. Based on the test analysis results regarding the influence of the work environment on employee performance, it is evident that the work environment has a positive effect on employee performance, and this relationship is significant, with a p-value of less than 0. It means that the better the employee's work environment, the greater the increase in employee performance, and the influence is significant. comfortable and conducive work environment can provide employees with the necessary support to generate innovative ideas, ultimately contributing to the achievement of company goals and enhancing employee performance. A comfortable and conducive work environment is characterized by the situation and conditions that foster effective communication and teamwork, enabling employees to collaborate and achieve maximum work performance. According to Fitri and Ferdian . , the work environment should be designed to foster a working relationship that binds workers to the organization. The work environment is good if its employees can carry out work activities optimally, safely, healthily and comfortably. A poor work environment can also have a negative impact on the company, as it prevents employees from working efficiently. This open-access article is distributed under a Creative Commons Attribution (CC-BY-NC) 4. 0 license Several studies that are in line with this study are studies conducted by Solihatun et al. whose research shows that the work environment has a positive and significant effect on employee performance at PT Herba Emas Wahidatama. Ritongga & Bahri . also in their research shows that the work environment has a positive and significant effect on employee performance at PT. Mode Fashion Medan. Uma, and Swasti . also demonstrate, in their research, that the work environment has a positive and significant effect on employee performance at PT. Susanti et al. also demonstrate, in their research, that the work environment has a positive and significant effect on employee performance at PT. SR Internasional, as well as research conducted by Marcelia et al. , states that the work environment has a positive and significant effect on employee performance at the Muara Tawar PLTGU Project. Different from the research conducted by Bague et al. their research stated that the work environment does not have a significant effect on employee performance at Bank Mandiri KC Pare-pare. Nurhidayati & Anggraini . also in their research results stated that the work environment does not have a significant effect on employee performance at PT Bank BRI Syariah in Jombang Regency and Suhartono et al. who stated that the work environment does not have a significant effect on employee performance in the Power Generation Industry. The Influence of Work Motivation on Job Satisfaction. Based on the test analysis results regarding the influence of work motivation on job satisfaction, it is evident that work motivation has a positive effect on job satisfaction, and the relationship is significant, as indicated by a significance value below 0. It means that the higher employee work motivation, the greater the increase in employee job satisfaction, and the effect is significant. By motivating employees through job promotions and providing them with the freedom to innovate and develop, employees can derive satisfaction from their work, which can have a positive impact on their work results. Yanuari . stated that motivation is formed from an employee's attitude in facing work situations. Motivation is a condition that drives employees to make efforts to achieve organizational goals. organization can succeed well if accompanied by activities to utilize human resources, especially employees, optimally. Therefore, organizations must be aware of the techniques that can be used to maintain survival. Yuliantini and Santoso . stated that the elements of work motivation consist of behavioral direction, level of effort, and level of persistence. Several studies have found a positive relationship between work motivation and job satisfaction that is in line with this study, namely the study conducted by Feri et al. , which states that work motivation has a positive and significant effect on job satisfaction of employees of PT Champion Kurnia Djaja Technologies. Hidayat . also in his study stated that work motivation has a positive and significant effect on employee job satisfaction at PT Asuransi Binagriya Upakara and Salsabila & Suryawan . in their study stated that work motivation has a positive and significant effect on employee job satisfaction at PT KWS. In contrast to the study conducted by Agustinah et al. , which stated that work motivation does not have a significant effect on employee job satisfaction at UKM Batik Tulis in Malang Raya. Susanti et al. also stated that work motivation does not have a significant effect on employee job satisfaction at PT SR. International and Marcelia et al. stated that work motivation has no significant effect on employee job satisfaction at the PLTGU Muara Tawar Project. The Influence of Work Motivation on Employee Performance. Based on the test analysis results regarding the influence of work motivation on employee performance, it is evident that work motivation has a positive effect on employee performance, and this relationship is significant, as indicated by a significance value of less than 0. It means that employee work motivation increases employee performance, which in turn increases, and the effect is significant. Motivating This open-access article is distributed under a Creative Commons Attribution (CC-BY-NC) 4. 0 license employees will have a positive impact on their willingness to work harder and deliver good results for the company. If this motivation has increased, the employee's work results will also be maximized, which will have a positive impact on their overall performance. Pariesti et al. define work motivation as a condition that influences the awakening, directing and maintaining behavior related to the work environment. Motivation is defined as a driver or drive in humans that can cause, direct, and organize behavior. Motivation is another meaning of the drive to do Motivation is a driver for individuals and organizations to take action because there is a target or goal to be achieved (Bague et al. , 2. Several studies have found a positive relationship between motivation and employee performance that is in line with this study, namely the study conducted by Syahputra & Sugiono . , which stated that work motivation has a positive and significant effect on employee performance at PT DHL Supply Chain Indonesia. Suhartono et al. also in his study stated that work motivation has a positive and significant effect on employee performance in the Power Generation Industry and Salsabila & Suryawan . which stated that work motivation has a positive and significant effect on employee performance at PT KWS. In contrast to the study conducted by Marcelia et al. , the study stated that work motivation does not have a significant effect on employee performance at the Muara Tawar PLTGU project. Susanti et al. also in his study stated that work motivation does not have a significant effect on employee performance at PT SR. International and Agustinah et al. stated that work motivation has no significant effect on employee performance at UKM Batik Tulis in Malang Raya. The Influence of Job Satisfaction on Employee Performance. Based on the test analysis results regarding the effect of job satisfaction on employee performance, it is evident that job satisfaction has a positive impact on employee performance, although the relationship is not statistically significant. It means that the higher the job satisfaction, the higher the employee performance will be, but the effect is not significant. The insignificant effect of job satisfaction on employee performance is due to the presence of other factors that can influence employee performance, such as the work environment and work motivation. It means that whether or not employees are satisfied with their work does not impact the quality of the work they do, which aims to achieve performance results in order to meet company goals. Job satisfaction is an important aspect that individuals value in their work. Between individuals, they exhibit different behaviors, resulting in varying levels of satisfaction (Sunarta, 2. Job satisfaction is an employee's view of their work, whether it is pleasant or unpleasant (Handoko et al. , 2. Several studies that are in line with this study that found a positive and insignificant relationship between job satisfaction and employee performance are studies conducted by Syahputra & Sugiono . , which stated that job satisfaction does not have a significant effect on employee performance at PT DHL Supply Chain Indonesia. Ariansi & Kurnia . which stated that job satisfaction is not significant on employee performance at PT. Telkom Magelan and Daryanto et al . which stated that job satisfaction has no significant effect on employee performance at PT ABC. In contrast to the research conducted by Feri et al. , which stated that job satisfaction has a positive and significant effect on employee performance at PT Champion Kurnia Djaja Technologies, and Ritongga & Bahri . , which stated that job satisfaction has a positive and significant effect on employee performance at PT Mode Fashion Medan. The Role of Job Satisfaction in Mediating the Influence of Work Environment on Employee Performance. Based on the test analysis results, which examined the influence of the work environment on job satisfaction and employee performance, it is evident that the prediction results yielded an estimate of the interaction effect with a significance value of 0. 382, indicating that the This open-access article is distributed under a Creative Commons Attribution (CC-BY-NC) 4. 0 license relationship is not significant. In the context of job satisfaction, the work environment has a negligible influence on employee performance. It means that a person's satisfaction with their work, combined with a comfortable work environment, cannot significantly impact their performance It means that job satisfaction cannot explain how the overall work environment can affect employee performance. It means that whether employees are satisfied or dissatisfied with their work, the work environment still has a more significant impact on employee performance. If the employee's work environment is comfortable and conducive, their performance will likely increase, regardless of whether they are satisfied with their work. Job satisfaction plays a significant role in shaping the work environment and influencing employee performance, as it is an important element in improving employee performance both directly and indirectly. Additionally, job satisfaction is closely tied to employees' attitudes toward their work and the work environment within an organization. Job satisfaction is an important aspect that must be managed effectively by each organization to maintain employee performance. Similarly, the work environment is also a crucial element that significantly impacts employee performance. A conducive work environment will support employees in working better (Sunarta, 2. Several studies that align with this study have found a mediating role of satisfaction in the relationship between the work environment and employee performance. Nurhidayati and Anggraini . stated that job satisfaction does not mediate the influence of the work environment on employee performance at PT. Bank BRI Syariah in Jombang Regency. Bague et al. stated that the role of job satisfaction does not mediate the influence of the work environment on employee performance at Bank Mandiri KC Pare-pare. In contrast to the research conducted by Ritongga & Bahri . also stated that job satisfaction is able to mediate the influence of the work environment on employee performance at PT Mode Fashion Medan, and Suhartono et al. stated that satisfaction is able to mediate the work environment on employee performance in the Power Generation Industry. The Role of Job Satisfaction in Mediating the Influence of Work Motivation on Employee Performance. Based on the results of the test analysis on the influence of work motivation through job satisfaction on employee performance, it is known that the prediction results obtained an estimate of the interaction effect with a significance value> 0. 05 of 0. 111, so it can be said that the job satisfaction construct does not mediate the relationship between work motivation and employee In the context of job satisfaction, work motivation has a limited effect on employee It means that a person's satisfaction in their work, accompanied by motivational encouragement to advance, cannot affect how their performance results. It means that job satisfaction cannot explain the work motivation variable as a whole, which can affect employee It means that even though employees derive satisfaction from their work, it will not have an impact on increasing employee work motivation, which in turn will improve employee The primary area that needs improvement is employee motivation to innovate and develop, which will have a significant impact on their performance. Job satisfaction has a role in influencing employee work motivation and performance. Because job satisfaction is an important element in improving employee performance both directly and indirectly. Additionally, job satisfaction is closely tied to employees' attitudes toward their work and the work environment within an organization. Job satisfaction is an important aspect that must be managed effectively by every organization to maintain employee performance (Handoko et al. , 2. Several studies that align with this study have found the mediating role of job satisfaction in the relationship between work motivation and employee performance. Agustinah et al. stated that job satisfaction was unable to mediate the influence of motivation on employee performance in This open-access article is distributed under a Creative Commons Attribution (CC-BY-NC) 4. 0 license Batik Tulis UMKM Employees in Malang Raya. Marcelia et al. stated that job satisfaction was unable to mediate the influence of work motivation on employee performance at PLTGU Muara Tawar, and Susanti et al. stated that the role of job satisfaction was unable to mediate the influence between motivation and employee performance at PT. SR Internasional. Different from the research conducted by Feri et al. stated that job satisfaction is able to mediate the influence of work motivation on employee performance at PT Champion Kurnia Djaja Technologies. Hidayat . also stated that job satisfaction is able to mediate the influence of work motivation on employee performance at PT Asuransi Binagriya Upakara and Syahputra & Sugiono . who stated that job satisfaction is able to mediate the influence of work motivation on employee performance at PT DHL Supply Chain Indonesia. CONCLUSION The work environment has a positive and insignificant effect on job satisfaction at Agung Bali Oleh-Oleh. It means that if the employee's work environment provides a sense of comfort, then job satisfaction will increase, and the effect is not significant. The work environment has a positive and significant effect on employee performance at Agung Bali Oleh-Oleh. It means that if the work environment is good, employee performance will increase, and the effect is significant. Work motivation has a positive and significant effect on job satisfaction at Agung Bali Oleh-Oleh. It means that if an employee's work motivation is high, job satisfaction will increase, and the effect is Work motivation has a positive and significant effect on employee performance at Agung Bali Oleh-Oleh. It means that if an employee's work motivation is high, their performance will increase, and the effect is significant. Job satisfaction has a positive and insignificant effect on employee performance at Agung Bali Oleh-Oleh. It means that if employee job satisfaction increases, then employee performance will also increase, and the effect is not significant. Job satisfaction does not act as a mediating variable between the influence of the work environment on employee It means that job satisfaction is unable to mediate the impact of the work environment on employee performance. It means that if employees have high job satisfaction, then neither a comfortable nor an uncomfortable work environment will be able to improve employee Job satisfaction does not act as a mediating variable between the influence of work motivation on employee performance. It means that job satisfaction is not able to mediate work motivation on employee performance. It means that if employees have high job satisfaction and are also highly motivated, it will not be able to improve employee performance. Suggestion. The company must be able to provide a comfortable environment for employees, enabling them to work more effectively. Especially for indicators with low values. I have a good relationship with my coworkers and feel the same status at work. The company or leader must be fair in assigning the same status to each employee at work so that there is no jealousy between employees, which can lead to strained relationships. It can have a negative impact on both employee job satisfaction and performance. In the work motivation variable, the company or leader must be able to provide motivational encouragement to employees, enabling them to be more active in their Based on the indicators that still have values below average, namely. I follow the rules at work. I strive to improve. I attempt to develop skills aligned with the company's goals, and I aim to deliver good work results for the company. Motivating employees can be achieved in various ways, such as providing rewards for employees who achieve good performance results or offering promotions as awards. This approach can increase employee motivation to work, ultimately impacting their performance results. In the job satisfaction variable, the company or leader must be able to find out whether employees are satisfied with their work or not. Judging from the indicators This open-access article is distributed under a Creative Commons Attribution (CC-BY-NC) 4. 0 license that have values below average, namely. I am satisfied with the direction and guidance provided by the leader to improve my work. I am pleased with my good relationship with my coworkers, and I am satisfied with the current working conditions. The company or leader should be able to provide direction and guidance to their employees, creating a comfortable working atmosphere, supporting facilities, and appropriate team colleagues. It will enable employees to work more effectively, increasing employee satisfaction, which in turn will positively impact employee performance. The employee performance variable, as indicated by the indicators still below average. I am able to perform the job with good results, work effectively with the team, and demonstrate a commitment to working well. The company or leader should always monitor the results of employee work to achieve maximum results and provide clear understanding to employees, enabling them to complete their tasks effectively. It fosters a high sense of commitment among employees, holding them responsible for the outcomes of their work. Limitation. The results of this study cannot be generalized to the industry, meaning that this study is only able to explain the unique characteristics of Agung Bali souvenirs, as the factors influencing employee performance may differ in industries other than Agung Bali souvenirs. Suggestions for further research. Further research should expand this study to include factors beyond work environment and work motivation that can impact employee performance and job Variables such as work stress, servant leadership, workload, and job characteristics can be explored to identify additional factors that influence employee performance through job It is also recommended that further researchers expand the scope of the research to provide a broader view, allowing the results to be generalized. REFERENCES