Employee performance of state-owned enterprises in Indonesia: The influence of job characteristics and work environment and employee engagement as an intervening variable

Abstract

The purpose of this study was to determine whether employee performance is influenced by job characteristics, work environment, and employee engagement. The method used in this research was quantitative, employing a random sampling technique with 211 participants and data collection through a questionnaire. The data analysis technique used was Structural Equation Modeling Partial Least Square (SEM PLS). The results of this study indicate that (1) employee engagement is significantly influenced by job characteristics, (2) employee engagement is significantly influenced by the work environment, (3) employee performance is influenced by job characteristics, (4) employee performance is influenced by the work environment but not significantly, (5) employee performance is significantly influenced by employee engagement, (6) employee performance is significantly influenced by job characteristics through employee engagement, and (7) employee performance is significantly influenced by the work environment through employee engagement. It is expected that good employee performance will increase employee productivity.