Muhammad Taufik Lesmana

This study focuses on highlighting the performance of employees in Sharia banking. The research gap in this study is the impact of job crafting on employee performance. Thus, this study aims to investigate the role of career competencies and job crafting against employee performance mediated by employee engagement of Sharia banking employees in North Sumatra, Indonesia. The paper used the stratified random sampling technique with disproportionate random samples. The sample involved 386 Sharia bank employees in North Sumatra, Indonesia. The data were analyzed using the SEM PLS approach. The hypotheses results suggest that job crafting and employee engagement have a significant impact on employee performance, job crafting has a significant effect on employees’ engagement, career competencies have a major impact on job crafting (< 0.05), career competencies do not have an impact on employee engagement and employee performance (> 0.05). Indirectly, career competencies influence employee engagement and employee performance through job crafting. Career competencies influence employee performance through job crafting and employee performance. Job crafting has a significant impact on employee performance at employee engagement < 0.05, and career competencies do not have a significant effect on employee performance through employee engagement. The implications are that job crafting has a role inherent in the individual level of an employee and as a strategy to emphasize employee engagement and employee performance in the Sharia banking sphere in North Sumatra, Indonesia.

Acknowledgment
This study is supported by the Ministry of Education, Culture, Research, and Technology of the Republic of Indonesia for funding on categories of basic research of high-ranking University (PDUPT) Program in 2022 on Economics issue with contract number: 256/ES/PG.02.00.PT/2022 ; 120/LL1/LT/K/2022 AND 204/II.3-AU/UMSU-LP2M/C/2022. Furthermore, thanks are conveyed to all levels of management at Universitas Muhammadiyah Sumatera Utara and the leaders of the Faculty of Economics and Business. Then thanks also go to BSI (Bank Syariah Indonesia), Bank Muamalat, BMS (Bank Mega Syariah), and all employees of Islamic Banking in North Sumatra who have contributed to this research.

Small and Medium Enterprises (SMEs) in Indonesia have a strategic role in the national economy and face challenges in global competition. These challenges include limited access to capital, limitations in technology adoption, low innovation capacity, and the need for more human resource development. Many SMEs also operate informally, facing obstacles in obtaining policy support or broader market access. This study aims to analyze the effect of Customer Relationship Management (CRM) and market orientation on SMEs’ performance, with innovation capabilities as a mediating variable. The study was conducted on 348 respondents who were SMEs business actors producing packaged food in North Sumatra. The method used is quantitative through surveys and data analysis using the Structural Equation Modeling (SEM) Partial Least Squares (PLS) technique. The results of the study indicate that Customer Relationship Management (CRM) has a positive influence on SMEs performance (p=0.000) and innovation capabilities (p=0.011). Besides, market orientation also contributes significantly to SMEs’ performance (p=0.000) and innovation capabilities (p=0.000). Innovation capabilities have been proven to improve SMEs’ performance (p=0.000). In the indirect effect, innovation capabilities mediate between CRM and SMEs’ performance (p=0.013) and between market orientation and SMEs’ performance (p=0.000). These results indicate that CRM and market orientation not only have a direct effect on SMEs’ performance but also indirectly through increasing innovation capabilities.

Acknowledgment
Gratitude to the Directorate General of Higher Education, Research, and Technology of the Ministry of Education, Culture, Research, and Technology of the Republic of Indonesia (Kementerian Pendidikan, Kebudayaan, Riset, dan Teknologi Republik Indonesia, Direktorat Jenderal Pendidikan Tinggi, Riset, Dan Teknologi) for providing financial support through funding for Regular Fundamental Research in 2024 with contract number 103/E5/PG.02.00.PL/2024; 16/LL1/AL.04.03/2024; 10/II.3-AU/UMSU-LP2M/C/2024. Gratitude to the Leaders of the University and the Leaders of Universitas Muhammadiyah Sumatera Utara (UMSU) [University of Muhammadiyah Sumatera Utara] for their support and provision of facilities during the research process. Thank you to all parties who have contributed directly and indirectly to supporting and assisting this research. The assistance, time, and attention given are significant in completing this research.