Revealing the role of job involvement and employee loyalty as mediation variables

Abstract

Company performance is one measure for companies in order to create surplus value by producing a product or service to gain business profits. One of the factors that affect the performance of the company is the performance factor of its employees. Employee performance can be influenced by servant leadership style. Servant leadership prioritizes followers and prioritizes service to subordinates in a work relationship so that it will have an impact on the emergence of job involvement and employee loyalty to the company which will then affect the enhancement and improvement of employee performance. This study was conducted to determine the role of the job investment variable and employee loyalty variable as mediating variables in the effect of servant leadership on employee performance. This research was conducted using a saturated sample involving 182 employees who were respondents from a plastic manufacturing company packaging for Bottled Drinking Water (AMDK). The results of data processing with the SmartPLS 3.3.3 application resulted in the conclusion that servant leadership has a positive and significant effect on job involvement. Servant leadership has a positive but not significant effect on employee loyalty. Job involvement has a positive and significant effect on employee performance. Employee loyalty has a positive and significant effect on employee performance. Job involvement has a positive and significant effect on employee loyalty. Servant leadership has a positive and significant effect on employee performance through job involvement. Servant leadership has a positive but not significant effect on employee performance through employee loyalty. Servant leadership has a positive and significant effect on employee performance through job involvement and employee loyalty.