Sustainable leadership, organizational culture and organizational commitment: a pathway to enhanced employee performance through employee engagement in Malaysia’s oil and gas sector

Abstract

This study examines the relationships between sustainable leadership, organizational culture, organizational commitment, employee engagement, and employee performance within Petronas, Malaysia. Using a quantitative research approach, data was collected from employees across various job levels and divisions through a structured survey. The minimum sample size was determined using G*Power, and the actual sample comprised 304 respondents. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed for data analysis. The findings indicate that sustainable leadership and organizational culture significantly influence employee engagement and performance, while organizational commitment does not exhibit a direct effect. Employee engagement mediates the effects of sustainable leadership and organizational culture on performance, but not organizational commitment. These findings contribute to Stakeholder Theory and Social Exchange Theory, highlighting that employees reciprocate ethical leadership and supportive cultures with higher engagement and performance. The study emphasizes the importance of fostering sustainable leadership, organizational culture and enhancing employee engagement to improve performance in Malaysia’s oil and gas sector. Future research should explore other mediating factors and industry-specific dynamics.