Millatina Azizah Virdiani
Universitas Indonesia, Depok, Indonesia

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The Influence of High-Performance Work Practices and Ethical Leadership on Employee Performance: The Mediating Role of Work Engagement Millatina Azizah Virdiani; Riani Rachmawati
Danadyaksa: Post Modern Economy Journal Vol. 4 No. 1 (2026): Post Modern Economy Journal
Publisher : Yayasan Pendidikan Islam Bustanul Ulum Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.69965/danadyaksa.v4i1.564

Abstract

Many organizations continue to face challenges in achieving optimal employee performance in increasingly competitive business environments. Traditional approaches, such as providing training, rewards, and employee empowerment, are often insufficient to sustain high levels of performance. Organizations must also foster ethical leadership that promotes employee engagement and motivation. This study examines the effects of High-Performance Work Practices (HPWP) and ethical leadership on employee performance, with work engagement serving as a mediating variable. While previous studies have frequently focused on either organizational practices or leadership style independently, this research integrates both perspectives to provide a more comprehensive understanding of employee performance. A quantitative research design was employed using survey data collected from employees in the Greater Jakarta area (JABODETABEK) who had worked in their organizations for at least one year. The data were analyzed using Structural Equation Modeling (SEM). The findings indicate that both HPWP and ethical leadership have significant positive effects on work engagement. In turn, work engagement significantly enhances employee performance. Furthermore, work engagement mediates the relationships between HPWP and employee performance, as well as between ethical leadership and employee performance. These results suggest that organizations can improve employee performance by implementing high-performance human resource practices and promoting ethical leadership behaviors that strengthen employees’ psychological attachment to their work. The study contributes to the literature by demonstrating the complementary roles of organizational practices and leadership in fostering employee engagement and performance. Practically, the findings highlight the importance of creating a supportive and ethical work environment to achieve sustainable organizational success.