Danadyaksa: Post Modern Economy Journal
Vol. 4 No. 1 (2026): Post Modern Economy Journal

The Influence of High-Performance Work Practices and Ethical Leadership on Employee Performance: The Mediating Role of Work Engagement

Millatina Azizah Virdiani (Universitas Indonesia, Depok, Indonesia)
Riani Rachmawati (Universitas Indonesia, Depok, Indonesia)



Article Info

Publish Date
03 Sep 2026

Abstract

Many organizations continue to face challenges in achieving optimal employee performance in increasingly competitive business environments. Traditional approaches, such as providing training, rewards, and employee empowerment, are often insufficient to sustain high levels of performance. Organizations must also foster ethical leadership that promotes employee engagement and motivation. This study examines the effects of High-Performance Work Practices (HPWP) and ethical leadership on employee performance, with work engagement serving as a mediating variable. While previous studies have frequently focused on either organizational practices or leadership style independently, this research integrates both perspectives to provide a more comprehensive understanding of employee performance. A quantitative research design was employed using survey data collected from employees in the Greater Jakarta area (JABODETABEK) who had worked in their organizations for at least one year. The data were analyzed using Structural Equation Modeling (SEM). The findings indicate that both HPWP and ethical leadership have significant positive effects on work engagement. In turn, work engagement significantly enhances employee performance. Furthermore, work engagement mediates the relationships between HPWP and employee performance, as well as between ethical leadership and employee performance. These results suggest that organizations can improve employee performance by implementing high-performance human resource practices and promoting ethical leadership behaviors that strengthen employees’ psychological attachment to their work. The study contributes to the literature by demonstrating the complementary roles of organizational practices and leadership in fostering employee engagement and performance. Practically, the findings highlight the importance of creating a supportive and ethical work environment to achieve sustainable organizational success.

Copyrights © 2026






Journal Info

Abbrev

danadyaksa

Publisher

Subject

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

Description

Danadyaksa: Post Modern Economy Journal is an open-access, peer-reviewed journal whose objective is to publish original research papers related to the economy, Sharia economy, and business issues. This journal is also dedicated to disseminating the published articles freely for international ...