Employee engagement in logistics industry: a perspective in Indonesia

Abstract

Indonesia has a lower employee engagement rate than other nations in Southeast Asia, and this phenomenon applies to all industries, including the logistics sector. The logistics industry generally contributes a critical portion of a nation's economy, so further study of the management effectiveness in logistics companies is essential. Any company requires a reliable workforce to function at its best. This research investigates some variables influencing employee engagement in the Indonesian logistics industry. The first variable is corporate governance; the second variable is internal control; corporate reputation is the third, where all these three are set as independent variables. The research also examines whether leadership style moderates the influences of the three independent variables on employee engagement. This study collected data research by distributing questionnaires to 742 respondents from 353 logistics firms. Statistical results came from the Partial Least Square-Structural Equation Modelling (PLS-SEM) method used in this study. The findings revealed that the three independent variables positively and significantly impacted employee engagement. The leadership style functioned as the moderating role in corporate governance’s impact and the corporate reputation’s effect proven in this research; in contrast, it did not apply to internal control’s impact. These results suggest that logistics companies in Indonesia can improve employee engagement by ensuring exemplary implementation of the three independent variables while adopting a leadership style that supports these efforts.