Psychological well-being as a driver of MSMEs performance: Insights from Tangkahan ecotourism

https://doi.org/10.35912/ahrmr.v5i2.3337
Published: Jun 30, 2025

Abstract:

Purpose: This study aims to explore the relationship between job satisfaction, mental health, motivation, stress management, and performance of MSME actors engaged in the Tangkahan ecotourism sector. The main focus of this study is to understand what psychological factors and working conditions contribute the most to improving the performance of MSMEs in the sector.

Methodology/approach: This study involved 117 MSME participants from university and government training programs. Data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) and supported by field observations to validate and strengthen the obtained quantitative finding.

Results/findings: The study found that job satisfaction and mental health positively and significantly affect MSME performance, while motivation shows no significant impact. Psychological conditions and work environment play greater roles. Stress management indirectly enhances performance by improving mental health, despite its insignificant direct effect on performance.

Conclusion: This study concludes that psychological well-being and job satisfaction are key factors in improving the performance of MSME actors in the ecotourism sector. Therefore, it is important for stakeholders to create a mentally supportive work environment and implement effective stress management strategies to optimize the productivity of MSMEs.

Limitations: This study has limitations in the geographical scope and characteristics of the respondents, which only includes MSME actors in the Tangkahan ecotourism area. Therefore, the results of this study cannot be generalized to other MSME regions or sectors.

Contribution: This study contributes to MSME empowerment policy by emphasizing mental health and job satisfaction improvement. The findings guide universities, governments, and institutions in designing effective interventions to enhance MSME actors’ productivity and overall performance.

Keywords:
1. CIPP Policy Evaluation
2. Halal Tourism
3. West Nusa Tenggara
Authors:
1 . Ahmad Prayudi
Universitas Medan Area, Medan, Sumatera Utara, Indonesia
2 . Henny Pratiwi
Universitas Medan Area, Medan, Sumatera Utara, Indonesia
3 . Muhammad Reza Aulia
Universitas Teuku Umar, Aceh Barat, Aceh, Indonesia
4 . Warsani Purnama Sari
Universitas Medan Area, Medan, Sumatera Utara, Indonesia
5 . Teuku Muhammad Syauqi
niversity of Dharmawangsa, Medan, Sumatera Utara, Indonesia
6 . Fantashir Awwal Fuqara
Universitas Teuku Umar, Aceh Barat, Aceh, Indonesia
7 . Alfis Yuhendra
Universitas Teuku Umar, Aceh Barat, Aceh, Indonesia
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How to Cite
Prayudi, A., Pratiwi, H., Aulia, M. R., Sari, W. P., Syauqi, T. M., Fuqara, . F. A., & Yuhendra, . A. (2025). Psychological well-being as a driver of MSMEs performance: Insights from Tangkahan ecotourism. Annals of Human Resource Management Research, 5(2), 349–361. https://doi.org/10.35912/ahrmr.v5i2.3337
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Issue & Section
Vol. 5 No. 2 (2025): June
Articles
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References

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    Ahmada, H. A., Fakhr, R., & Divers, A. (2023). Examining the Interplay of Reward Systems, Employee Engagement, And Psychological Wellbeing in the Zanzibar Workplace: A Comprehensive Analysis. Journal of Chemical Health Risks, 13(4), 932-942.

    Aprilia, N., Indiworo, R. H. E., & Meiriyanti, R. (2023). Kepuasan Kerja Sebagai Pemediasi Pada Pengaruh Kompensasi dan Motivasi Kerja Terhadap Kinerja Karyawan di UMKM Java Loenpia. MANABIS: Jurnal Manajemen dan Bisnis, 2(4), 227-239. doi:https://doi.org/10.54259/manabis.v2i4.2261

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    Filimonau, V., Matyakubov, U., Matniyozov, M., Shaken, A., & Mika, M. (2024). Women Entrepreneurs in Tourism in a Time of a Life Event Crisis. Journal of Sustainable Tourism, 32(3), 457-479. doi:https://doi.org/10.1080/09669582.2022.2091142

    Hermawati, A. (2020). Transglobal Leadership Approach to Sustainable Tourism Competitiveness at Tourism Sector-Engaged MSMEs through Integrated Human Resource Performance and Responsible Marketing. International Journal of Tourism Cities, 6(4), 863-883. doi:https://doi.org/10.1108/IJTC-06-2019-0085

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    Koomson, S. (2024). Contract Fulfilment, Quality Management, ICT Adoption, Government, and Co-Worker Support: A Conceptual Framework for Student Contentment in Higher Educational Institutions. Cogent Business & Management, 11(1), 1-17. doi:https://doi.org/10.1080/23311975.2024.2333607

    Lukito, D., Susanti, M., Susanto, Y., Judijanto, L., Ali, M., & Mahardhani, A. J. (2025). Determinants of Sustainable Employee Performance: A Study of Family Businesses in Indonesia. Asia Pacific Management Review, 30(2), 1-12. doi:https://doi.org/10.1016/j.apmrv.2024.12.004

    Martínez-Falcó, J., Sánchez-García, E., Marco-Lajara, B., & Millán-Tudela, L. A. (2024). Enhancing Employee Wellbeing and Happiness Management in the Wine Industry: Unveiling the Role of Green Human Resource Management. BMC Psychology, 12(1), 1-17. doi:https://doi.org/10.1186/s40359-024-01703-y

    Nanjundeswaraswamy, T., Nagesh, Bharath, S., & Vignesh. (2024). The Mediating Role of Self-Efficacy in the Relationship between Job Satisfaction and Commitment of Employees Working in the Textile Industry. Research Journal of Textile and Apparel, 28(4), 1031-1050. doi:https://doi.org/10.1108/RJTA-01-2023-0002

    Nora, E., Djatmika, E. T., & Pratikto, H. (2024). Workplace Spirituality and Its Influence on Innovative Work Behaviour in Micro, Small, and Medium Size Enterprises (MSMEs): The Role of Islamic Spiritual Values in the Contemporary Workplace. Manchester Journal of Transnational Islamic Law & Practice, 20(4).

    Nurhasanah, N., Pratama, Y. A. S., & Nurmaisyah, I. (2023). The Effect of Job Satisfaction, Work-Life Balance and Psychological Well-Being on Employee Performance at PT. JAS. Applied Quantitative Analysis, 2(2), 1-13. doi:https://doi.org/10.31098/quant.944

    Pradikto, A. A. P. R., Prasetya, A., & Hutahayan, B. (2025). A Review of How Leadership Justice, and Job Satisfaction Interact to Shape Counterproductive Work Behavior. Annals of Human Resource Management Research, 5(1), 105-124. doi:https://doi.org/10.35912/ahrmr.v5i1.2860

    Prayudi, A., Pratiwi, H., Aulia, M. R., & Sari, W. P. (2023). The Influence of Technical Competencies and Psychological Well-being on the Competitiveness of Micro, Small, and Medium Enterprises. Bulletin of Counseling and Psychotherapy, 5(3), 1-15. doi:https://doi.org/10.51214/002023051310000

    Purnomo, S., & Purwandari, S. (2025). A Comprehensive Micro, Small, and Medium Enterprise Empowerment Model for Developing Sustainable Tourism Villages in Rural Communities: A Perspective. Sustainability, 17(4), 1-40. doi:https://doi.org/10.3390/su17041368

    Rosiana, A., Tjahjono, H. K., Muafi, & Isfianadewi, D. (2024). The Impact of High-Performance Work System on Intellectual Capital, Organizational Resilience and Innovation Growth: Evidence from the Micro Small Medium Enterprise. Studies in Systems, Decision and Control, 223, 307-318. doi:https://doi.org/10.1007/978-3-031-51997-0_26

    Siregar, N. S. S., Prayudi, A., Sari, W. P., Rosalina, D., & Pratama, I. (2023). The Role of Social Media Literacy for Micro Small Medium Enterprises (MSMEs) and Innovation in Developing Tourism Village in Indonesia. Przestrze? Spo?eczna (Social Space), 23(2), 221-249.

    Sisodia, S., & Jan, S. (2025). Does Entrepreneurial Leadership Influence Employees' Emotional Wellbeing During Crisis?. In M. N. Tunio (Ed.), Supporting Psychological and Emotional Wellbeing Among Entrepreneurs (pp. 135-154). Hershey: IGI Global.

    Syahreza, D. S., Bahri, S., Akhyar, C., Bachri, N., & Muhamad, N. S. a. (2025). Impact of Self-Efficacy and Employee Empowerment on Employee Performance: Mediating Role of Job Satisfaction. Jurnal Organisasi dan Manajemen, 21(1), 50-64. doi:https://doi.org/10.33830/jom.v21i1.9597.2025

    Wei, X. (2023). Sustainability Metrics of Environmental Sustainability in Iranian Manufacturing Sector: Achieving Through Human Resources. Environmental Science and Pollution Research, 30(56), 118352-118365. doi:https://doi.org/10.1007/s11356-023-30583-9

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  1. Abolnasser, M. S. A., Abdou, A. H., Hassan, T. H., & Salem, A. E. (2023). Transformational Leadership, Employee Engagement, Job Satisfaction, and Psychological Well-Being among Hotel Employees after the Height of the COVID-19 Pandemic: A Serial Mediation Model. International Journal of Environmental Research and Public Health, 20(4), 1-27. doi:https://doi.org/10.3390/ijerph20043609
  2. Ahmada, H. A., Fakhr, R., & Divers, A. (2023). Examining the Interplay of Reward Systems, Employee Engagement, And Psychological Wellbeing in the Zanzibar Workplace: A Comprehensive Analysis. Journal of Chemical Health Risks, 13(4), 932-942.
  3. Aprilia, N., Indiworo, R. H. E., & Meiriyanti, R. (2023). Kepuasan Kerja Sebagai Pemediasi Pada Pengaruh Kompensasi dan Motivasi Kerja Terhadap Kinerja Karyawan di UMKM Java Loenpia. MANABIS: Jurnal Manajemen dan Bisnis, 2(4), 227-239. doi:https://doi.org/10.54259/manabis.v2i4.2261
  4. Bakhshi, P., Agrawal, R., Mendon, S., Birau, R., & B?rb?cioru, I. C. (2023). Framework of SDG Leadership among SMEs in South Asian Nations-Using Interpretive Structural Modelling. Cogent Business & Management, 10(3), 1-25. doi:https://doi.org/10.1080/23311975.2023.2253607
  5. BPS. (2023). Kecamatan Batang Serangan dalam Angka 2023. Langkat: Badan Pusat Statistik.
  6. Carvache-Franco, O., Gutiérrez-Candela, G., Guim-Bustos, P., Carvache-Franco, M., & Carvache-Franco, W. (2020). Effect of R&D Intensity on the Innovative Performance of Manufacturing Companies. Evidence from Ecuador, Peru and Chile. International Journal of Innovation Science, 12(5), 509-523. doi:https://doi.org/10.1108/IJIS-04-2020-0046
  7. Dagher, J., & Fayad, L. (2024). Business Process Reengineering: A Crucial approach for enhanced organizational sustainability. In H. El-Chaarani, I. E. Dandachi, S. E. Nemar, & Z. E. Abiad (Eds.), Navigating the Intersection of Business, Sustainability and Technology (pp. 25-59). Singapore: Springer.
  8. Dwikardana, S., & Teressia, A. (2022). Mapping HRM Implementation in Indonesia’s SMEs: In Search of new HRM Model. TRIKONOMIKA: Jurnal Ekonomi, 21(2), 92-100. doi:https://doi.org/10.23969/trikonomika.v21i2.5755
  9. Fazry, R. W. (2024). Maritime Human Resources Development Strategy in Indonesia (Literature Study). Journal of Law, Social Science and Humanities, 2(1), 84-97.
  10. Filimonau, V., Matyakubov, U., Matniyozov, M., Shaken, A., & Mika, M. (2024). Women Entrepreneurs in Tourism in a Time of a Life Event Crisis. Journal of Sustainable Tourism, 32(3), 457-479. doi:https://doi.org/10.1080/09669582.2022.2091142
  11. Hermawati, A. (2020). Transglobal Leadership Approach to Sustainable Tourism Competitiveness at Tourism Sector-Engaged MSMEs through Integrated Human Resource Performance and Responsible Marketing. International Journal of Tourism Cities, 6(4), 863-883. doi:https://doi.org/10.1108/IJTC-06-2019-0085
  12. Ichdan, D. A. (2024). Analysis of Employee Performance Through Productivity: the Role of Kaizen Culture, Motivation, and Work Discipline in the Manufacturing Industry. Annals of Human Resource Management Research, 4(1), 13-28. doi:https://doi.org/10.35912/ahrmr.v4i1.2158
  13. Ismarizal, B., Malihah, E., & Andari, R. (2023). Tourism Potential Analysis through Community-Based Tourism Approach: Talang Mamak and Melayu Tua Tribe Communities in Rantau Langsat Village. Media Komunikasi Geografi, 24(1), 64-72. doi:https://doi.org/10.23887/mkg.v24i1.59106
  14. Johansen, K. M., & Konu, H. (2025). Designing Transformative Nature-Based Wellbeing Tourism Experiences: A Case Study from the Finnish Lakeland Region. Tourism Recreation Research, 1-17. doi:https://doi.org/10.1080/02508281.2024.2443983
  15. Kartika, T., & Riana, N. (2020). Storynomics Tourism as an Effective Marketing Strategy on Tourism Destination (Case Study on Tangkuban Parahu, West Java-Indonesia). Tourism and Sustainable Development Review, 1(1), 33-40. doi:https://doi.org/10.31098/tsdr.v1i1.8
  16. Kimbu, A. N., Adam, I., Dayour, F., & de Jong, A. (2023). COVID-19-Induced Redundancy and Socio-Psychological Well-Being of Tourism Employees: Implications for Organizational Recovery in a Resource-Scarce Context. Journal of Travel Research, 62(1), 55-74. doi:https://doi.org/10.1177/00472875211054571
  17. Koomson, S. (2024). Contract Fulfilment, Quality Management, ICT Adoption, Government, and Co-Worker Support: A Conceptual Framework for Student Contentment in Higher Educational Institutions. Cogent Business & Management, 11(1), 1-17. doi:https://doi.org/10.1080/23311975.2024.2333607
  18. Lukito, D., Susanti, M., Susanto, Y., Judijanto, L., Ali, M., & Mahardhani, A. J. (2025). Determinants of Sustainable Employee Performance: A Study of Family Businesses in Indonesia. Asia Pacific Management Review, 30(2), 1-12. doi:https://doi.org/10.1016/j.apmrv.2024.12.004
  19. Martínez-Falcó, J., Sánchez-García, E., Marco-Lajara, B., & Millán-Tudela, L. A. (2024). Enhancing Employee Wellbeing and Happiness Management in the Wine Industry: Unveiling the Role of Green Human Resource Management. BMC Psychology, 12(1), 1-17. doi:https://doi.org/10.1186/s40359-024-01703-y
  20. Nanjundeswaraswamy, T., Nagesh, Bharath, S., & Vignesh. (2024). The Mediating Role of Self-Efficacy in the Relationship between Job Satisfaction and Commitment of Employees Working in the Textile Industry. Research Journal of Textile and Apparel, 28(4), 1031-1050. doi:https://doi.org/10.1108/RJTA-01-2023-0002
  21. Nora, E., Djatmika, E. T., & Pratikto, H. (2024). Workplace Spirituality and Its Influence on Innovative Work Behaviour in Micro, Small, and Medium Size Enterprises (MSMEs): The Role of Islamic Spiritual Values in the Contemporary Workplace. Manchester Journal of Transnational Islamic Law & Practice, 20(4).
  22. Nurhasanah, N., Pratama, Y. A. S., & Nurmaisyah, I. (2023). The Effect of Job Satisfaction, Work-Life Balance and Psychological Well-Being on Employee Performance at PT. JAS. Applied Quantitative Analysis, 2(2), 1-13. doi:https://doi.org/10.31098/quant.944
  23. Pradikto, A. A. P. R., Prasetya, A., & Hutahayan, B. (2025). A Review of How Leadership Justice, and Job Satisfaction Interact to Shape Counterproductive Work Behavior. Annals of Human Resource Management Research, 5(1), 105-124. doi:https://doi.org/10.35912/ahrmr.v5i1.2860
  24. Prayudi, A., Pratiwi, H., Aulia, M. R., & Sari, W. P. (2023). The Influence of Technical Competencies and Psychological Well-being on the Competitiveness of Micro, Small, and Medium Enterprises. Bulletin of Counseling and Psychotherapy, 5(3), 1-15. doi:https://doi.org/10.51214/002023051310000
  25. Purnomo, S., & Purwandari, S. (2025). A Comprehensive Micro, Small, and Medium Enterprise Empowerment Model for Developing Sustainable Tourism Villages in Rural Communities: A Perspective. Sustainability, 17(4), 1-40. doi:https://doi.org/10.3390/su17041368
  26. Rosiana, A., Tjahjono, H. K., Muafi, & Isfianadewi, D. (2024). The Impact of High-Performance Work System on Intellectual Capital, Organizational Resilience and Innovation Growth: Evidence from the Micro Small Medium Enterprise. Studies in Systems, Decision and Control, 223, 307-318. doi:https://doi.org/10.1007/978-3-031-51997-0_26
  27. Siregar, N. S. S., Prayudi, A., Sari, W. P., Rosalina, D., & Pratama, I. (2023). The Role of Social Media Literacy for Micro Small Medium Enterprises (MSMEs) and Innovation in Developing Tourism Village in Indonesia. Przestrze? Spo?eczna (Social Space), 23(2), 221-249.
  28. Sisodia, S., & Jan, S. (2025). Does Entrepreneurial Leadership Influence Employees' Emotional Wellbeing During Crisis?. In M. N. Tunio (Ed.), Supporting Psychological and Emotional Wellbeing Among Entrepreneurs (pp. 135-154). Hershey: IGI Global.
  29. Syahreza, D. S., Bahri, S., Akhyar, C., Bachri, N., & Muhamad, N. S. a. (2025). Impact of Self-Efficacy and Employee Empowerment on Employee Performance: Mediating Role of Job Satisfaction. Jurnal Organisasi dan Manajemen, 21(1), 50-64. doi:https://doi.org/10.33830/jom.v21i1.9597.2025
  30. Wei, X. (2023). Sustainability Metrics of Environmental Sustainability in Iranian Manufacturing Sector: Achieving Through Human Resources. Environmental Science and Pollution Research, 30(56), 118352-118365. doi:https://doi.org/10.1007/s11356-023-30583-9
  31. Wiratno, Withaningsih, S., Gunawan, B., & Iskandar, J. (2022). Ecotourism as a Resource Sharing Strategy: Case Study of Community-Based Ecotourism at the Tangkahan Buffer Zone of Leuser National Park, Langkat District, North Sumatra, Indonesia. Sustainability, 14(6), 1-18. doi:https://doi.org/10.3390/su14063399