Antecedents and consequences of employee engagement in the SMEs of crafts

Irma Dwi Istiningsih, Dyah Sugandini and Purbudi Wahyuni
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Irma Dwi Istiningsih: Faculty of Economy and Business, Universitas Pembangunan Nasional Veteran Yogyakarta, Indonesia
Dyah Sugandini: Faculty of Economy and Business, Universitas Pembangunan Nasional Veteran Yogyakarta, Indonesia
Purbudi Wahyuni: Faculty of Economy and Business, Universitas Pembangunan Nasional Veteran Yogyakarta, Indonesia

International Journal of Research in Business and Social Science (2147-4478), 2020, vol. 9, issue 7, 23-31

Abstract: The research aims to analyze the mediating role of employee engagement between job satisfaction and reward as the antecedents, the connection between employee engagement and Leader-Member Exchange, and commitment as the consequences. Meanwhile, this primary study's purpose is to determine whether (and how) employee engagement and antecedents influence Leader-Member Exchange and Organizational Commitment. The population of wooden batik craft centers in Bantul regency is 57 centers and in Gunung Kidul regency is 20 centers. A census did sampling with 292 crafters consisting of 148 crafters in Bantul regency and 144 crafters in Gunung Kidul regency. The data collection technique used in this research was to use a questionnaire. This research uses the AMOS Structural Equation Modelling technique. The results confirm that job satisfaction, reward, employee engagement, Leader-Member Exchange, and Commitment are interrelated. Job satisfaction and reward had a positive relationship with employee engagement. Furthermore, employee engagement mediated the connection between Leader-Member Exchange and Commitment, and Leader-Member Exchange had a positive relationship with commitment. Key Words: Leader-Member Exchange, Commitment, and employee engagement

Date: 2020
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