Abstract
The research aims to analyze the mediating role of employee engagement between job satisfaction and reward as the antecedents, the connection between employee engagement and Leader-Member Exchange, and commitment as the consequences. Meanwhile, this primary study's purpose is to determine whether (and how) employee engagement and antecedents influence Leader-Member Exchange and Organizational Commitment. The population of wooden batik craft centers in Bantul regency is 57 centers and in Gunung Kidul regency is 20 centers. A census did sampling with 292 crafters consisting of 148 crafters in Bantul regency and 144 crafters in Gunung Kidul regency. The data collection technique used in this research was to use a questionnaire. This research uses the AMOS Structural Equation Modelling technique. The results confirm that job satisfaction, reward, employee engagement, Leader-Member Exchange, and Commitment are interrelated. Job satisfaction and reward had a positive relationship with employee engagement. Furthermore, employee engagement mediated the connection between Leader-Member Exchange and Commitment, and Leader-Member Exchange had a positive relationship with commitment
Highlights
As one of Indonesia's provinces, Yogyakarta has many potentials in the creative industry with many tourist destinations in Yogyakarta because it has an existing history, culture, and nature
Companies are no longer only looking for prospective employees who have above average abilities, but they are looking for prospective employees who can invest themselves in being fully involved in work, be proactive, and have a high commitment to quality performance standards (Bakker, 2011)
The results showed an indirect effect of job satisfaction on leader-member exchange mediated by employee engagement amounting to 0.507
Summary
As one of Indonesia's provinces, Yogyakarta has many potentials in the creative industry with many tourist destinations in Yogyakarta because it has an existing history, culture, and nature. The low Employee engagement of handicraft SMEs in Yogyakarta is unique because these artisans can quickly move from one SMEs to another without feeling guilty about the previous manager. These craftsmen will set up their businesses (Sugandini et al, 2018; Istiningsih et al, 2020) This is detrimental to SMEs because: SMEs lose skilled human resources, and SMEs have to re-educate new artisans. These two things interfere with the performance of SMEs. These two things interfere with the performance of SMEs By observing this phenomenon, Employee engagement becomes an exciting issue to research in SMEs in Yogyakarta. Companies are no longer only looking for prospective employees who have above average abilities, but they are looking for prospective employees who can invest themselves in being fully involved in work, be proactive, and have a high commitment to quality performance standards (Bakker, 2011)
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