Enhancing Employee Engagement in Indonesian Logistics and Forwarders Industry: The Moderating Role of a Democratic Leadership Style

The quality of employee skills and job commitments, measured based on their retention, is essential in the current rapidly changing technological world. This study aimed to identify the influences of corporate governance (CG), internal control (IC), and corporate reputation (CR) on employee engageme...

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Main Authors: Haryanto Haryanto, Harry Suharman, Poppy Sofia Koeswayo, Haryono Umar
Format: Article
Language:English
Published: MDPI AG 2022-11-01
Series:Economies
Subjects:
Online Access:https://www.mdpi.com/2227-7099/10/11/284
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author Haryanto Haryanto
Harry Suharman
Poppy Sofia Koeswayo
Haryono Umar
author_facet Haryanto Haryanto
Harry Suharman
Poppy Sofia Koeswayo
Haryono Umar
author_sort Haryanto Haryanto
collection DOAJ
description The quality of employee skills and job commitments, measured based on their retention, is essential in the current rapidly changing technological world. This study aimed to identify the influences of corporate governance (CG), internal control (IC), and corporate reputation (CR) on employee engagement (EE) with democratic leadership style as the moderating variable. Data from 276 companies with 606 respondents were collected using a Google form questionnaire sent to logistics companies that are members of the Indonesian Logistics and Forwarders Association (ILFA) and analyzed using the Partial Least Square–Structural Equation Modeling (PLS–SEM) with the help of SmartPLS 4.0.7.8 software. The results showed that corporate governance, reputation, and internal control positively influence employee engagement. Furthermore, the democratic leadership style does not strengthen the effects of corporate governance, internal control, and corporate reputation on employee engagement. This implies that leaders of the Indonesian logistics and forwarders industry should find a more suitable leadership style for their respective organizations because democratic leadership may not always be the best choice.
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spelling doaj.art-7b6539817e4640ff9d195894ed708bff2023-11-24T08:07:07ZengMDPI AGEconomies2227-70992022-11-01101128410.3390/economies10110284Enhancing Employee Engagement in Indonesian Logistics and Forwarders Industry: The Moderating Role of a Democratic Leadership StyleHaryanto Haryanto0Harry Suharman1Poppy Sofia Koeswayo2Haryono Umar3Department of Accounting, Faculty of Economics and Business, Padjadjaran University, Bandung 45363, IndonesiaDepartment of Accounting, Faculty of Economics and Business, Padjadjaran University, Bandung 45363, IndonesiaDepartment of Accounting, Faculty of Economics and Business, Padjadjaran University, Bandung 45363, IndonesiaDepartment of Accounting, Faculty of Economics and Business, Perbanas Institute, Jakarta 12940, IndonesiaThe quality of employee skills and job commitments, measured based on their retention, is essential in the current rapidly changing technological world. This study aimed to identify the influences of corporate governance (CG), internal control (IC), and corporate reputation (CR) on employee engagement (EE) with democratic leadership style as the moderating variable. Data from 276 companies with 606 respondents were collected using a Google form questionnaire sent to logistics companies that are members of the Indonesian Logistics and Forwarders Association (ILFA) and analyzed using the Partial Least Square–Structural Equation Modeling (PLS–SEM) with the help of SmartPLS 4.0.7.8 software. The results showed that corporate governance, reputation, and internal control positively influence employee engagement. Furthermore, the democratic leadership style does not strengthen the effects of corporate governance, internal control, and corporate reputation on employee engagement. This implies that leaders of the Indonesian logistics and forwarders industry should find a more suitable leadership style for their respective organizations because democratic leadership may not always be the best choice.https://www.mdpi.com/2227-7099/10/11/284leadership stylecorporate governanceinternal controlcorporate reputationemployee engagement
spellingShingle Haryanto Haryanto
Harry Suharman
Poppy Sofia Koeswayo
Haryono Umar
Enhancing Employee Engagement in Indonesian Logistics and Forwarders Industry: The Moderating Role of a Democratic Leadership Style
Economies
leadership style
corporate governance
internal control
corporate reputation
employee engagement
title Enhancing Employee Engagement in Indonesian Logistics and Forwarders Industry: The Moderating Role of a Democratic Leadership Style
title_full Enhancing Employee Engagement in Indonesian Logistics and Forwarders Industry: The Moderating Role of a Democratic Leadership Style
title_fullStr Enhancing Employee Engagement in Indonesian Logistics and Forwarders Industry: The Moderating Role of a Democratic Leadership Style
title_full_unstemmed Enhancing Employee Engagement in Indonesian Logistics and Forwarders Industry: The Moderating Role of a Democratic Leadership Style
title_short Enhancing Employee Engagement in Indonesian Logistics and Forwarders Industry: The Moderating Role of a Democratic Leadership Style
title_sort enhancing employee engagement in indonesian logistics and forwarders industry the moderating role of a democratic leadership style
topic leadership style
corporate governance
internal control
corporate reputation
employee engagement
url https://www.mdpi.com/2227-7099/10/11/284
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AT poppysofiakoeswayo enhancingemployeeengagementinindonesianlogisticsandforwardersindustrythemoderatingroleofademocraticleadershipstyle
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