The Effect of Leadership, Employee Engagement, and Work Environment on Employee Performance in the Manufacturing Industry
DOI:
https://doi.org/10.37641/jimkes.v14i2.4623Keywords:
Employee Engagement, Employee Performance, Leadership, Work EnvironmentAbstract
Employee performance is a strategic determinant for the sustainability and competitiveness of the organization, especially in the manufacturing industry that faces pressure on efficiency and production accuracy. This study aims to analyze the influence of leadership, employee engagement, and work environment on employee performance, both partially and simultaneously. The study used a quantitative approach by collecting data through a structured questionnaire given to all 66 permanent employees as respondents, so this study used a total sampling technique. The collected data were analyzed using multiple linear regression to test the relationships between variables. The results of the study show that leadership, employee engagement, and work environment each have a significant partial effect on employee performance, and simultaneously, these three variables are proven to have a significant influence on improving employee performance. These findings confirm that organizational effectiveness is largely determined by the synergy between a supportive leadership style, high employee engagement, and a conducive work environment. This research makes a theoretical contribution in strengthening the understanding of the determinants of employee performance in the context of the manufacturing industry and provides practical implications for company management in formulating performance improvement strategies through strengthening leadership, optimizing engagement, and improving the work environment.
Downloads
References
Abdulfatai, Y. (2021). Leadership and effective human resource management in organization. RUDN Journal of Public Administration, 8(3), 277–296.
Abdurachman, D., Ramdhan, R. M., Karsoma, A., Winarno, A., & Hermana, D. (2023). Integrating leadership in job demand resources (JD-R) for personal performance in military institution. Sustainability, 15(5), 4004-4016.
Ahakwa, I., Yang, J., Tackie, E. A., & Atingabili, S. (2021). The influence of employee engagement, work environment and job satisfaction on organizational commitment and performance of employees: A sampling weights in PLS path modelling. SEISENSE Journal of Management, 4(3), 34–62.
Aidara, S., Mamun, A. A., Nasir, N. A. M., Mohiuddin, M., Nawi, N. C., & Zainol, N. R. (2021). Competitive advantages of the relationship between entrepreneurial competencies and economic sustainability performance. Sustainability, 13(2), 864-876.
Aiyub, A., Yusuf, E., Bintan, R., Adnan, A., & Azhar, A. (2021). The effect of employee engagement on employee performance with organizational commitment as intervening variable and perceived organizational support as a moderating variable at the regional secretariat of Bireuen District. Jurnal Visioner & Strategis, 10(2), 145-157.
Al Marshoudi, F. B., Jamaluddin, Z., & Al Balushi, F. I. (2023). Transformational leadership mediates the relationship between employee engagement and performance in production media. International Journal of Management, 1(2), 89-101.
Alzoubi, H. M., In’airat, M., & Ahmed, G. (2022). Investigating the impact of total quality management practices and Six Sigma processes to enhance the quality and reduce the cost of quality: The case of Dubai. International Journal of Business Excellence, 27(1), 94–109.
Andreas, D. (2022). Employee performance: The effect of motivation and job satisfaction. Produktif: Jurnal Kepegawaian dan Organisasi, 1(1), 28–35.
Andriansyah, M., Rubini, B., & Setyaningsih, S. (2024). Organizational support and servant leadership: The mediating role of work motivation and integrity in work productivity. Journal of Vasyl Stefanyk Precarpathian National University, 11(4), 122–138.
Arifin, S., Kuswandi, K., & Rahayu, S. (2025). The influence of leadership style, work ethic, and job satisfaction on the performance of local government office employees. Jurnal Ilmiah Manajemen Kesatuan, 13(1), 551–562.
Bakker, A. B., & De Vries, J. D. (2021). Job demands–resources theory and self-regulation: New explanations and remedies for job burnout. Anxiety, Stress & Coping, 34(1), 1–21.
Basalamah, M. S. A., & As’ad, A. (2021). The role of work motivation and work environment in improving job satisfaction. Golden Ratio of Human Resource Management, 1(2), 94–103.
Bellibaş, M. Ş., Kılınç, A. Ç., & Polatcan, M. (2021). The moderation role of transformational leadership in the effect of instructional leadership on teacher professional learning and instructional practice: An integrated leadership perspective. Educational Administration Quarterly, 57(5), 776–814.
Bowden, J. L.-H., Tickle, L., & Naumann, K. (2021). The four pillars of tertiary student engagement and success: A holistic measurement approach. Studies in Higher Education, 46(6), 1207–1224.
Farooq, A., Abbey, A. B. N., & Onukwulu, E. C. (2024). A conceptual framework for ergonomic innovations in logistics: Enhancing workplace safety through data-driven design. Gulf Journal of Advance Business Research, 2(6), 435–446.
Ghasemi, F., Mahdinia, M., & Doosti-Irani, A. (2025). Safety-specific transformational leadership and safety outcomes at workplaces: A scoping review study. BMC Public Health, 25(1), 2723-2735.
Govindasamy, P., Cumming, T. M., & Abdullah, N. (2024). Validity and reliability of a needs analysis questionnaire for the development of a creativity module. Journal of Research in Special Educational Needs, 24(3), 637–652.
Irayani, I., Melvani, F. N., Azrin, A., & Mikial, M. (2025). Behavioral theory and organizational culture: The interplay of transformational leadership, team dynamics, and motivation in driving change at Tridinanti University of Palembang. The Eastasouth Management and Business, 3(2), 220–229.
Kim, J. S. (2023). Effect of psychological meaningfulness on job involvement, proactive behavior, and performance: Focusing on the mediating effect of self-efficacy. Sustainability, 15(13), 1008-1018.
Kim, M., & Beehr, T. A. (2023). Empowering leadership improves employees’ positive psychological states to result in more favorable behaviors. The International Journal of Human Resource Management, 34(10), 2002–2038.
Koroglu, Ş., & Ozmen, O. (2022). The mediating effect of work engagement on innovative work behavior and the role of psychological well-being in the job demands–resources (JD-R) model. Asia-Pacific Journal of Business Administration, 14(1), 124–144.
Kurniadi, A., Sudarmiatin, S., & Wardana, L. W. (2024). The role of MSMEs in local economic improvement and labor absorption in Indonesia. Nusantara Economics and Entrepreneurships Journals, 2(1), 333–341.
Kurniawan, I. S., Kusuma, N. T., Suyanto, S., Nikmah, U., Purbowo, F. A., Susilowati, H., & Sholihah, M. (2024). Job satisfaction for sustainability: The impact of toxic work environment and workload mediated by emotional exhaustion. In E3S Web of Conferences (Vol. 571, p. 01013). London: EDP Sciences.
Lamprinou, V. D. I., Tasoulis, K., & Kravariti, F. (2021). The impact of servant leadership and perceived organisational and supervisor support on job burnout and work–life balance in the era of teleworking and COVID-19. Leadership & Organization Development Journal, 42(7), 1071–1088.
López-Cabarcos, M. Á., Vázquez-Rodríguez, P., & Quiñoá-Piñeiro, L. M. (2022). An approach to employees’ job performance through work environmental variables and leadership behaviours. Journal of Business Research, 140(1), 361–369.
Lu, X., Yu, H., & Shan, B. (2022). Relationship between employee mental health and job performance: Mediation role of innovative behavior and work engagement. International Journal of Environmental Research and Public Health, 19(11), 6599-6610.
Mazzetti, G., & Schaufeli, W. B. (2022). The impact of engaging leadership on employee engagement and team effectiveness: A longitudinal, multi-level study on the mediating role of personal- and team resources. PLoS ONE, 17(6), 269-191.
Mazzetti, G., Robledo, E., Vignoli, M., Topa, G., Guglielmi, D., & Schaufeli, W. B. (2023). Work engagement: A meta-analysis using the job demands–resources model. Psychological Reports, 126(3), 1069–1107.
Montgomery, D. C., Peck, E. A., & Vining, G. G. (2021). Introduction to linear regression analysis (6th ed.). New Jersey: John Wiley & Sons.
Mourtzis, D., & Panopoulos, N. (2022). Digital transformation process towards resilient production systems and networks. In Supply network dynamics and control (pp. 11–42). Cham: Springer.
Muhammad, M., Suleiman, W., Mamun, M. A., Jewel, R. M., & Mozumder, M. A. S. (2025). Mediating effect of appraisal fairness between the relationship of appraisal satisfaction and employee performance appraisal: A case of Bauchi State Teachers Service Commission, Nigeria. Cogent Business & Management, 12(1), 245-257.
Naranjo, J. E., Mora, C. A., Bustamante Villagómez, D. F., Mancheno Falconi, M. G., & Garcia, M. V. (2025). Wearable sensors in industrial ergonomics: Enhancing safety and productivity in Industry 4.0. Sensors, 25(5), 1526-1539.
Noya, J. (2024). Physical and non-physical work environment on employee performance. Asian Journal of Management, Entrepreneurship and Social Science, 4(2), 908–921.
Nuraena, S., Yuniar, N., & Prasetya, F. (2024). The relationship between physical work environment, non-physical work environment, and organizational commitment on the performance of nurses in the inpatient ward of Kendari City Hospital. Journal of Health Science and Medical Therapy, 2(2), 135–148.
Nurlina, N. (2022). Examining linkage between transactional leadership, organizational culture, commitment and compensation on work satisfaction and performance. Golden Ratio of Human Resource Management, 2(2), 108–122.
Purwanto, A., Purba, J. T., Bernarto, I., & Sijabat, R. (2021). Effect of management innovation, transformational leadership, and knowledge sharing on market performance of Indonesian consumer goods company. Jurnal Aplikasi Manajemen, 19(2), 424–434.
Radu, C. (2023). Fostering a positive workplace culture: Impacts on performance and agility. In Human resource management—An update. London: IntechOpen.
Riyanto, S., Endri, E., & Herlisha, N. (2021). Effect of work motivation and job satisfaction on employee performance: Mediating role of employee engagement. Problems and Perspectives in Management, 19(3), 162–174.
Roziq, M., Reawaroe, H. P., & Rosyidi, A. I. (2021). Investment perspectives in human resources management and its contribution on organizational performance and competitive advantages. Journal of Management and Leadership, 4(1), 1–13.
Schaufeli, W. B. (2021). Engaging leadership: How to promote work engagement? Frontiers in Psychology, 12(1), 754-768.
Setyawati, A., Pahrudin, C., Agusinta, L., Sitanggang, R., & Susanto, P. C. (2025). Employee performance through employee engagement in cargo companies. Jurnal Ilmiah Manajemen Kesatuan, 13(2), 1249–1256.
Sitopu, Y. B., Sitinjak, K. A., & Marpaung, F. K. (2021). The influence of motivation, work discipline, and compensation on employee performance. Golden Ratio of Human Resource Management, 1(2), 72–83.
Sony, M., & Mekoth, N. (2022). Employee adaptability skills for Industry 4.0 success: A road map. Production & Manufacturing Research, 10(1), 24–41.
Surianto, S., & Nurfahira, N. (2024). The role of work environment and leadership in enhancing employee performance. Economics and Digital Business Review, 5(2), 1054–1070.
Suryadi, Y., Dewi, N. L. Y., Trisnawati, T., & Al-Amin, A.-A. (2024). The impact of transformational leadership on organizational performance and employee motivation. Transforma Jurnal Manajemen, 2(2), 108–119.
Tortorella, G., Miorando, R., Caiado, R., Nascimento, D., & Portioli Staudacher, A. (2021). The mediating effect of employees’ involvement on the relationship between Industry 4.0 and operational performance improvement. Total Quality Management & Business Excellence, 32(1–2), 119–133.
Tran, T. T. H., Pham, T. B. L., Robinson, K., & Paparoidamis, N. (2025). Exploring the effect of family–work conflict on employee productivity in teleworking during crisis: A cross-national comparative study. International Marketing Review, 42(1), 1–34.
Udin, U., Dharma, R. D., Dananjoyo, R., & Shaikh, M. (2023). The role of transformational leadership on employee performance through organizational learning culture and intrinsic work motivation. International Journal of Sustainable Development and Planning, 18(1), 432-444.
Wahyu, M., Kuswandi, K., & Rahayu, S. (2025). The influence of work environment, work culture, and individual characteristics on employee performance. Jurnal Ilmiah Manajemen Kesatuan, 13(1), 421–432.
Wang, Y. (2024). Exploring the impact of workload, organizational support, and work engagement on teachers’ psychological wellbeing: A structural equation modeling approach. Frontiers in Psychology, 14(1), 57-70.
Załoga, W. (2024). The role of effective interpersonal communication in shaping organizational leadership. Zeszyty Naukowe: Organizacja i Zarządzanie/Politechnika Śląska, 200(1), 651-659.
Zhenjing, G., Chupradit, S., Ku, K. Y., Nassani, A. A., & Haffar, M. (2022). Impact of employees’ workplace environment on employees’ performance: A multi-mediation model. Frontiers in Public Health, 10(1), 890-902.
