International Journal of Business Economics (IJBE)
Vol 6, No 2 (2025): MARCH - AUGUST 2025

Leader-Member Exchange and Employee Performance: The Mediating Role of Work Engagement and Job Satisfaction

Siswadi, Yudi (Unknown)
Farisi, Salman (Unknown)
Arif, Muhammad (Unknown)
Astuti, Rini (Unknown)



Article Info

Publish Date
14 May 2025

Abstract

Purpose — This study investigates and evaluates the direct or indirect effects of leader-member exchange on work engagement and job satisfaction on employee performance.Methodology — This study adopts a causal approach, examining causal relationships between variables. It involved 200 employees from a Pharmaceutical Company in Medan, North Sumatra, Indonesia, with a sample size of 197 employees. Questionnaires were employed in this study's data collection process. Smartpls (Partial Least Squares) 3.0 software was utilised for structural equation modelling in statistical analysis.Findings — The findings of this study reveal that direct leader-member exchange, work engagement, and job satisfaction significantly affect employee performance. Leader-member exchange significantly affects performance through work engagement and employee job satisfaction at the Pharmaceutical Company in Medan, North Sumatra, Indonesia.Originality/Novelty — This study's novelty highlights the mediating role of work engagement and job satisfaction in the relationship between Leader-Member Exchange (LMX) and employee Performance improvement, providing new insights into such psychological mechanisms.Implications — This research provides information for the Pharmaceutical Company in Medan, North Sumatra, Indonesia, and related parties to improve employee performance by increasing job satisfaction and work engagement and improving existing leadership to provide employee comfort.

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Journal Info

Abbrev

ijbe

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

International Journal of Business Economics (IJBE) is a media publication manuscript that contains the results of the Field Research Management applying peer-reviewed. Manuscripts published in the International Journal of Business Economics (IJBE) includes the results of scientific research original ...