Proceeding of The International Conference on Management, Entrepreneurship, and Business
Vol. 2 No. 2 (2025): Proceeding of the International Conference on Management, Entrepreneurship, and

Employer Branding Meets Digital Capability: An Empirical Study on Employee Engagement and Turnover Intention in SMEs

Mila Sartika (Unknown)
Vincent Didiek Wiet Aryanto (Unknown)
Kusni Ingsih (Unknown)



Article Info

Publish Date
18 Nov 2025

Abstract

This study aims to analyze the influence of employer branding and digital capability on turnover intention, with employee engagement serving as a mediating variable, in Small and Medium Enterprises (SMEs) in Central Java Province. The research design uses a quantitative approach with an explanatory research method. The research sample consists of 205 SMEs employees selected using purposive sampling techniques with criteria of a minimum of six months of service and active use of digital technology in their work. Data were collected through a Likert-scale questionnaire and analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS). The results indicate that employer branding has a positive effect on employee engagement and a negative effect on turnover intention. Digital capability has a positive effect on employee engagement, but its direct effect on turnover intention is not significant. Employee engagement was found to mediate the relationship between employer branding and turnover intention, as well as between digital capability and turnover intention. These findings reinforce the relevance of Social Exchange Theory and the Resource-Based View in the context of human resource management in the SME sector, while also providing practical implications that strengthening employer branding and enhancing employees' digital competencies can reduce turnover intention.

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Journal Info

Abbrev

ICMEB

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

The paper topics published in the Proceeding of the International Conference on Management, Entrepreneurship, and Business the sub-groups of Human Resource Management, Financial Management, Marketing Management, Public Sector Management, Operations Management, Supply Chain Management, Corporate ...