Wiga : Jurnal Penelitian Ilmu Ekonomi
Vol. 15 No. 2 (2025): September 2025

The Role of Work Engagement as Mediator in Improving Organizational Performance in Manufacturing Companies

Setyawan, Agustinus (Unknown)
Yuswardi, Yuswardi (Unknown)
Jerry, Jerry (Unknown)



Article Info

Publish Date
08 Sep 2025

Abstract

This study investigates the role of work engagement as a mediator in enhancing organizational performance, particularly within the manufacturing industry. Employing a quantitative research design, the researchers collected data through structured questionnaires distributed to employees across four leading manufacturing companies in Batam, Indonesia. The sample size comprised 300 valid respondents, determined based on the total questionnaire items multiplied by ten, aligning with established sampling formulas. To analyze the hypothesized relationships, the study utilized Partial Least Squares Structural Equation Modeling (PLS-SEM), following the procedural guidelines of Ghozali (2021) and Hair et al. (2019). The data underwent rigorous testing, including assessments of reliability, validity, and multicollinearity, before conducting hypothesis testing. The results confirmed that work engagement significantly mediates the effects of organizational innovation and talent management on organizational performance, with all mediation effects supported by high T-values (>1.96). Meanwhile, the influence of HR practices and knowledge management on performance through work engagement showed mixed results. Based on these findings, the research recommends that organizations formulate effective strategies to foster work engagement, thereby improving overall performance. The study contributes to the theoretical understanding of the mediating role of work engagement and offers practical insights for organizational leaders.

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Journal Info

Abbrev

wiga

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Wiga : Jurnal Penelitian Ilmu Ekonomi is published twice a year in March and September, published by Sekolah Tinggi Ilmu Ekonomi Widya Gama since March 2011. Wiga : Jurnal Penelitian Ilmu Ekonomi is intended as a forum for publishing scientific articles in the field of economics : Accounting, ...