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

Author

Listed:
  • Haryanto Haryanto

    (Department of Accounting, Faculty of Economics and Business, Padjadjaran University, Bandung 45363, Indonesia)

  • Harry Suharman

    (Department of Accounting, Faculty of Economics and Business, Padjadjaran University, Bandung 45363, Indonesia)

  • Poppy Sofia Koeswayo

    (Department of Accounting, Faculty of Economics and Business, Padjadjaran University, Bandung 45363, Indonesia)

  • Haryono Umar

    (Department of Accounting, Faculty of Economics and Business, Perbanas Institute, Jakarta 12940, Indonesia)

Abstract

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.

Suggested Citation

  • Haryanto Haryanto & Harry Suharman & Poppy Sofia Koeswayo & Haryono Umar, 2022. "Enhancing Employee Engagement in Indonesian Logistics and Forwarders Industry: The Moderating Role of a Democratic Leadership Style," Economies, MDPI, vol. 10(11), pages 1-23, November.
    • Handle: RePEc:gam:jecomi:v:10:y:2022:i:11:p:284-:d:973481
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    References listed on IDEAS

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    1. A. E Adegboyegun & E Ben-Caleb & A. O Ademola & E. O Oladutire & G. M Sodeinde, 2020. "Internal Control Systems and Operating Performance: Evidence from Small and Medium Enterprises (SMEs) in Ondo State," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(4), pages 469-479.
    2. Artyom Shirin & Nicola Kleyn, 2017. "An Evaluation of the Effects of Corporate Reputation on Employee Engagement: The Case of a Major Bank in South Africa," International Studies of Management & Organization, Taylor & Francis Journals, vol. 47(3), pages 276-292, July.
    3. A. E. Adegboyegun & E. Ben-Caleb & A. O. Ademola & E. O. Oladutire & G. M. Sodeinde, 2020. "Internal Control Systems and Operating Performance: Evidence from Small and Medium Enterprises (SMEs) in Ondo State," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(4), pages 469-479, April.
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