Determinants influencing productivity in unicorn startups: Roles of new ways of working and work engagement

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Despite its growth, Indonesia’s startup industry struggles with high failure rates; this industry relies on employee productivity and promoting new work methods that reshape modern workplaces. The study aims to examine the impact of new ways of working on employee productivity and work engagement in Indonesian unicorn startups post-pandemic while also observing the current situation using importance-performance analysis. The data analysis uses structural equation modeling (SEM) with partial least squares (PLS) and Smart-PLS software. This study analyzes survey data from 56 leaders of Indonesian unicorn startups. It delves into the complex relationships between these variables based on the leaders’ perspectives. According to the findings, new ways of working impact employee productivity (β = 0.521; p-value < 0.05), new ways of working impact work engagement (β = 0.856; p-value < 0.05), work engagement impact employee productivity (β = 0.379; p-value < 0.05), and new ways of working impact employee productivity through work engagement (β = 0.325; p-value < 0.05). The findings indicate that new ways of working significantly affect work engagement and productivity. It also identifies work engagement as a key driver of employee productivity. Interestingly, the effect of new ways of working on employee performance is also mediated by work engagement, highlighting the relationship between these factors.

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    • Figure 1. Conceptual framework
    • Figure 2. Importance-performance analysis
    • Figure 3. Convergent validity test
    • Table 1. Respondents’ demographics
    • Table 2. Importance-performance analysis – New ways of working
    • Table 3. Importance-performance analysis – Work engagement
    • Table 4. Importance-performance analysis – Employee productivity
    • Table 5. Discriminant validity test
    • Table 6. Reliability test
    • Table 7. Coefficient of determination
    • Table 8. F-square test result
    • Table 9. Hypothesis testing result
    • Table 10. Model fit results
    • Table A1. Questionnaire of personal data
    • Table A2. Work engagement, new ways of working, and employee productivity questionnaire
    • Conceptualization
      Jefta Harlianto, Harjanto Prabowo, Rano Kartono Rahim, Nugroho J. Setiadi
    • Data curation
      Jefta Harlianto
    • Formal Analysis
      Jefta Harlianto
    • Investigation
      Jefta Harlianto
    • Methodology
      Jefta Harlianto, Harjanto Prabowo, Rano Kartono Rahim, Nugroho J. Setiadi
    • Project administration
      Jefta Harlianto
    • Resources
      Jefta Harlianto
    • Validation
      Jefta Harlianto
    • Visualization
      Jefta Harlianto
    • Writing – original draft
      Jefta Harlianto
    • Writing – review & editing
      Jefta Harlianto, Harjanto Prabowo, Rano Kartono Rahim, Nugroho J. Setiadi
    • Supervision
      Harjanto Prabowo, Rano Kartono Rahim, Nugroho J. Setiadi