<![CDATA[Background: Digital transformation encourages healthcare organizations to adopt Learning Management Systems (LMS) for flexible and measurable employee development. However, prior studies report inconsistent direct and mediated effects of LMS on performance, particularly in pharmaceutical retail. Objective: This study examines the effects of LMS implementation on employee engagement and performance at ApotekKU Bali, including the mediating role of employee engagement. Methods: A quantitative design and purposive sampling with a saturated (census) approach were applied. Of 413 questionnaire respondents, 409 met the analysis criteria. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). Results: LMS implementation positively affected employee engagement (β = 0.714; p < 0.05), while employee engagement positively affected performance (β = 0.718; p < 0.05). LMS had no significant direct effect on performance (β = 0.090; p > 0.05). Employee engagement fully mediated this relationship (indirect effect = 0.512; p < 0.05; VAF = 85.1%). The model explained 51.0% of employee engagement variance and 61.6% of performance variance. Conclusion: LMS improves performance through employee engagement rather than directly. Organizations should combine technological implementation with strategies that strengthen employees’ psychological engagement in digital learning.]]>
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