The Influence of Authentic Leadership on Employee Performance through Employee Engagement at the Public Drinking Water Company Tirta Kanjuruan Malang Regency

Authors

  • Ivan Widjaja STIE Artha Bodhi Iswara
  • Dewi Yustiana STIE Artha Bodhi Iswara
  • Koen Irianto Uripan STIE Artha Bodhi Iswara

DOI:

https://doi.org/10.70062/globalmanagement.v2i2.222

Keywords:

Authentic Leadership, Employee Engagement, Performance Employees, PLS-SEM

Abstract

This study aims to analyse the effect of authentic leadership on employee performance with employee engagement as a mediating variable at the Regional Drinking Water Company (PERUMDA) Tirta Kanjuruhan, Malang Regency. Authentic leadership is a leadership style that emphasises transparency, ethics, and honest relationships between leaders and employees, which is believed to increase employee engagement and performance. This study used a quantitative approach with a survey method. Data were collected through questionnaires distributed to employees of PERUMDA Tirta Kanjuruhan and analysed using Partial Least SquaresStructural Equation Modeling (PLS-SEM) technique. The results showed that authentic leadership has a positive and significant effect on employee engagement and employee performance. In addition, employee engagement was shown to act as a mediating variable that strengthens the relationship between authentic leadership and employee performance. The findings confirm the importance of authentic leadership in creating a work environment that supports employee engagement, which ultimately improves individual and organisational performance. This study provides implications for company management in developing more effective leadership strategies to improve employee productivity and well-being.

References

I. G. Adiputra, "The Influence of Financial Literacy, Financial Attitude and Locus of Control on Financial Satisfaction: Evidence From the Community in Jakarta," KnE Social Sciences, vol. 2021, pp. 636–654, 2021, doi: 10.18502/kss.v5i5.8848.

S. H. Awan, N. Habib, C. S. Akhtar, and S. Naveed, "Effectiveness of Performance Management System for Employee Performance Through Engagement," SAGE Open, vol. 10, no. 4, 2020, doi: 10.1177/2158244020969383.

A. F. Bari, A. Yunanto, and I. Shaferi, "The Role of Financial Self Efficacy in Moderating Relationships Financial Literacy and Financial Management Behaviour," International Sustainable Competitiveness Advantage, vol. 2018, pp. 51–60. [Online]. Available: http://jp.feb.unsoed.ac.id/index.php/sca-1/article/viewFile/1870/1745

K. F. Chong et al., "The Effects of Financial Literacy, Self-Efficacy and Self-Coping on Financial Behaviour of Emerging Adults," Journal of Asian Finance, Economics and Business, vol. 8, no. 3, pp. 905–915, 2021, doi: 10.13106/jafeb.2021.vol8.no3.0905.

J. W. Creswell, Designing and Constructing Mixed Methods Research. London: Sage Publications, 2019. [Online]. Available: https://books.google.nl/books?hl=nl&id=51UXBAAAQBAJ

D. Daraba, H. Wirawan, R. Salam, and M. Faisal, "Working from Home during the Coronavirus Pandemic: Investigating the Role of Authentic Leadership, Psychological Capital, and Gender on Employee Performance," Cogent Business and Management, vol. 8, no. 1, 2021, doi: 10.1080/23311975.2021.1885573.

S. E. Dare et al., "The Road to Financial Satisfaction: Testing the Paths of Knowledge, Attitudes, Sense of Control, and Positive Financial Behaviours," Journal of Financial Therapy, vol. 11, no. 2, pp. 1–30, 2020, doi: 10.4148/1944-9771.1240.

V. I. Dewi, E. Febrian, N. Effendi, and M. Anwar, "Financial Literacy among the Millennial Generation: Relationships Between Knowledge, Skills, Attitude, and Behaviour," Australasian Accounting, Business and Finance Journal, vol. 14, no. 4, pp. 24–37, 2020, doi: 10.14453/aabfj.v14i4.3.

A. P. Duarte, N. Ribeiro, A. S. Semedo, and D. R. Gomes, "Authentic Leadership and Improved Individual Performance: Affective Commitment and Individual Creativity’s Sequential Mediation," Frontiers in Psychology, vol. 12, May 2021, pp. 1–11, doi: 10.3389/fpsyg.2021.675749.

M. Duran and J. Sanchez, "Employee Engagement and Wellbeing in Times of COVID-19: A Proposal of the 5Cs Model," International Journal of Environmental Research and Public Health, vol. 18, no. 5470, pp. 2–15, 2021.

M. N. Farida, Y. Soesatyo, and T. S. Aji, "Influence of Financial Literacy and Use of Financial Technology on Financial Satisfaction through Financial Behaviour," International Journal of Education and Literacy Studies, vol. 9, no. 1, pp. 86–95, 2021, doi: 10.7575/aiac.ijels.v.9n.1p.86.

F. S. Goestjahjanti et al., "Impact of Talent Management, Authentic Leadership and Employee Engagement on Job Satisfaction: Evidence from South East Asian Industries," Journal of Critical Reviews, vol. 7, no. 19, pp. 67–88, 2020. [Online]. Available: https://www.researchgate.net/publication/342975537

A. H. Nasab and L. Afshari, "Authentic Leadership and Employee Performance: Mediating Role of Organizational Commitment," Leadership and Organisation Development Journal, vol. 40, no. 5, pp. 548–560, 2019, doi: 10.1108/LODJ-01-2019-0026.

J. F. Hair, M. Sarstedt, L. Hopkins, and V. G. Kuppelwieser, "Partial Least Squares Structural Equation Modelling (PLS-SEM): An Emerging Tool in Business Research," European Business Review, vol. 26, no. 2, pp. 106–121, 2019, doi: 10.1108/EBR-10-2013-0128.

A. N. Ismullah, "The Role of Authentic Leadership and Psychological Capital on Employee Innovative Work Behaviour," World Development, vol. 1, no. 1, pp. 1–15, 2018. [Online]. Available: http://www.fao.org/3/I8739EN/i8739en.pdf

B. Kaya and O. M. Karatepe, "Does Servant Leadership Better Explain Work Engagement, Career Satisfaction and Adaptive Performance than Authentic Leadership?," International Journal of Contemporary Hospitality Management, vol. 32, no. 6, pp. 2075–2095, 2020, doi: 10.1108/IJCHM-05-2019-0438.

Downloads

Published

2025-05-15

How to Cite

Ivan Widjaja, Dewi Yustiana, & Koen Irianto Uripan. (2025). The Influence of Authentic Leadership on Employee Performance through Employee Engagement at the Public Drinking Water Company Tirta Kanjuruan Malang Regency. Global Management: International Journal of Management Science and Entrepreneurship, 2(2), 120–126. https://doi.org/10.70062/globalmanagement.v2i2.222

Similar Articles

<< < 2 3 4 5 6 7 

You may also start an advanced similarity search for this article.