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

Haryanto Haryanto (), Harry Suharman, Poppy Sofia Koeswayo and Haryono Umar
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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

Economies, 2022, vol. 10, issue 11, 1-23

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.

Keywords: leadership style; corporate governance; internal control; corporate reputation; employee engagement (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2022
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