Journal of Economics and Management
Vol. 4 No. 2 (2026): Journal of Economics and Management, June 2026

When Agility Meets Engagement: Unveiling The Mechanism Of Employee Performance Enhancement

Irawati (Department of Management, Institut Teknologi dan Bisnis Indragiri, Indonesia)
Puspa Dewi (Department of Management, Institut Teknologi dan Bisnis Indragiri, Indonesia)
Ivalaina Astarina (Department of Management, Institut Teknologi dan Bisnis Indragiri, Indonesia)
Tomy Fitrio (Department of Management, Institut Teknologi dan Bisnis Indragiri, Indonesia)



Article Info

Publish Date
19 Jun 2026

Abstract

This study aims to develop a conceptual model of workforce agility, learning agility, and employee performance in Regional-Owned Enterprises (BUMD) in Indragiri Hulu Regency, with employee engagement as a mediating variable. Previous studies have reported inconsistent findings regarding the effect of workforce agility on employee performance and have generally examined workforce agility and learning agility separately. This study addresses this gap by integrating both constructs into a single model. A cross-sectional survey was conducted using a 5-point Likert-scale questionnaire administered to all employees of BUMD in Indragiri Hulu Regency, resulting in 169 respondents. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.1. The results show that workforce agility has no direct effect on employee performance, whereas learning agility does. Employee engagement mediates the relationships between workforce agility, learning agility, and employee performance. The novelty of this study lies in integrating workforce and learning agility with employee engagement as a mediating variable in the BUMD context. The findings extend the Job Demands-Resources Theory and Dynamic Capabilities Framework by highlighting employee engagement as a key mechanism linking agility and performance. Practically, BUMD managers should strengthen employee engagement and continuous learning to improve organizational adaptability and employee performance.

Copyrights © 2026






Journal Info

Abbrev

ecoma

Publisher

Subject

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

Description

Journal of Economics and Management (ECOMA) is a peer-reviewed, open access, and online journal about research, reports, book reviews, and commentaries on all aspects of Economics and Management which is published by Lembaga Publikasi Ilmiah Nusantara or PUBLINE Institute. ECOMA provides open access ...