Leadership styles and job insecurity in Indonesian start-ups: The role of challenges and engagement
-
Author(s)Abiqail YolandaLink to ORCID Index: https://orcid.org/0009-0004-2431-9013
,
Ady PurnamaLink to ORCID Index: https://orcid.org/0009-0006-3932-5111
,
Jefta HarliantoLink to ORCID Index: https://orcid.org/0000-0002-4918-9209
,
Anita MaharaniLink to ORCID Index: https://orcid.org/0000-0003-3942-9755
-
DOIhttp://dx.doi.org/10.21511/ppm.22(4).2024.12
-
Article InfoVolume 22 2024, Issue #4, pp. 149-162
- 132 Views
-
20 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Even though Indonesia’s start-up scene is experiencing rapid growth, the industry is grappling with considerable hurdles, such as a high rate of business closures, strong dependence on employee efficiency, and heavy reliance on technology. This paper examines the correlation between leadership styles, job challenges, job engagement, and job insecurity in Indonesian start-ups, which face unique challenges affecting employee job security. Unlike most research on how job insecurity impacts job engagement, this study explores whether higher job engagement impacts job insecurity, providing practical insights for leaders. The study was structured using a quantitative approach known as structural equation modeling-partial least squares (SEM-PLS), which analyzed 198 responses from Indonesian start-up employees. This study found that leadership styles significantly affect job insecurity (β = 1.337, p-value < 0.05), however, leadership styles do not substantially affect job engagement (β = 0,435, p-value > 0.05). Another finding states that job challenges do not significantly affect job engagement (β = 0.491, p-value > 0.05) and job insecurity (β = –0.037, p-value > 0.05). Job engagement significantly influences job insecurity (β = –0.428, p-value < 0.05). This study specifically targets employees in Indonesian start-ups to uncover mechanisms and offer practical recommendations for enhancing job security and motivation. The findings underscore the significant impact of leadership style on job insecurity, emphasizing the importance of engaging and motivating employees through personalized leadership style approaches to enhance job stability and overall workforce effectiveness in Indonesian start-ups.
- Keywords
-
JEL Classification (Paper profile tab)J24, M54, J28, J63
-
References53
-
Tables6
-
Figures2
-
- Figure 1. Conceptual model
- Figure 2. Hypothesis model result
-
- Table 1. Outer loading factors, AVE, Cronbach’s alpha, and composite reliability
- Table 2. Fornell-Lacker criterion
- Table 3. R-square, Q2, and SRMR
- Table 4. Bootstrapping
- Table 5. Total indirect effects
- Table 6. Hypotheses results
-
- Abu Nasra, M., & Arar, K. (2020). Leadership style and teacher performance: Mediating role of occupational perception. International Journal of Educational Management, 34(1), 186-202.
- Amzat, I. H., Taslikhan, M., Walters, L. M., & Walters, T. (2020). Likert’s 4-management system instrument psychometric properties-university management-Malaysia. Pertanika Journal of Social Sciences & Humanities, 28(3), 1621-1641.
- Ayu, M. A., & Ghazali, A. (2023). The impact of perceived organizational support on employee motivation in Indonesia technology start-up companies post pandemic Covid 19. International Journal of Current Science Research and Review, 6(5), 3069-3079.
- Babakus, E., Yavas, U., & Karatepe, O. M. (2017). Work engagement and turnover intentions: Correlates and customer orientation as a moderator. International Journal of Contemporary Hospitality Management, 29(6), 1580-1598.
- Blank, S. G., & Dorf, B. (2012). The startup owner’s manual: The step-by-step guide for building a great company. K&S Ranch Publishing LLC.
- Bortolini, R. F., Nogueira Cortimiglia, M., Danilevicz, A. de M. F., & Ghezzi, A. (2018). Lean startup: A comprehensive historical review. Management Decision, 59(8), 1765-1783.
- Breevaart, K., Bakker, A. B., Demerouti, E., & Derks, D. (2016). Who takes the lead? A multi-source diary study on leadership, work engagement, and job performance. Journal of Organizational Behavior, 37(3), 309-325.
- Caplan, S., & Whittemore, R. (2013). Barriers to treatment engagement for depression among Latinas. Issues in Mental Health Nursing, 34(6), 412-424.
- Chin, W. W., Peterson, R. A., & Brown, S. P. (2008). Structural equation modeling in marketing: Some practical reminders. Journal of Marketing Theory and Practice, 16(4), 287-298.
- Cho, K. M., Hong, T. H., & Hyun, C. T. (2009). Effect of project characteristics on project performance in construction projects based on structural equation model. Expert Systems with Applications, 36(7), 10461-10470.
- Decuypere, A., & Schaufeli, W. (2020). Leadership and work engagement: Exploring explanatory mechanisms. German Journal of Human Resource Management, 34(1), 69-95.
- Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
- Gage, D. (2012, September 20). From the venture capital secret: 3 out of 4 start-ups fail. The Wall Street Journal.
- Getahun Asfaw, A., & Chang, C. C. (2019). The association between job insecurity and engagement of employees at work. Journal of Workplace Behavioral Health, 34(2), 96-110.
- Ghozali, I., & Latan, H. (2015). Partial least squares konsep, teknik dan aplikasi menggunakan program SmartPLS 3.0 [Partial least squares concepts, techniques, and applications using SmartPLS 3.0 program] (2nd ed.). Semarang: Badan Penerbit Universitas Diponegoro. (In Indonesian).
- Gonos, J., & Gallo, P. (2013). Model for leadership style evaluation. Management, 18(2), 157-188.
- Greenhalgh, L., & Rosenblatt, Z. (1984). Job insecurity: Toward conceptual clarity. The Academy of Management Review, 9(3), 438-448.
- Guberina, T., Wang, A. M., & Obrenovic, B. (2023). An empirical study of entrepreneurial leadership and fear of COVID-19 impact on psychological wellbeing: A mediating effect of job insecurity. PLoS ONE, 18(5).
- Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). SAGE Publications, Inc.
- Hair, J., Hollingsworth, C. L., Randolph, A. B., & Chong, A. Y. L. (2017). An updated and expanded assessment of PLS-SEM in information systems research. Industrial Management and Data Systems, 117(3), 442-458.
- Hardiansyah, R., & Tricahyono, D. (2019). Identifikasi faktor-faktor kesuksesan start up digital di kota Bandung [Identification of Success Factors for Digital Startups in Bandung City]. Jurnal Ekonomi Universitas Riau. (In Indonesian).
- Harlin, U., & Berglund, M. (2021). Designing for sustainable work during industrial start-ups – The case of a high-growth entrepreneurial firm. Small Business Economics, 57(2), 807-819.
- Hendratmi, A., Ryandono, M. N. H., & Sukmaningrum, P. S. (2020). Developing Islamic crowdfunding website platform for start-up companies in Indonesia. Journal of Islamic Marketing, 11(5), 1041-1053.
- Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135.
- Hobfoll, S. E. (2001). The influence of culture, community, and the nested-self in the stress process: Advancing conservation of resources theory. Applied Psychology: An International Review, 50(3), 337-421.
- Hong, Y., Kim, M. J., & Sohn, Y. W. (2023). The relationship between job insecurity and safety behavior: The buffering role of leadership ethics. Sustainability, 15(18), Article 13910.
- Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1-55.
- Huang, G. H., Niu, X., Lee, C., & Ashford, S. J. (2012). Differentiating cognitive and affective job insecurity: Antecedents and outcomes. Journal of Organizational Behavior, 33(6), 752-769.
- Jung, H. S., Jung, Y. S., & Yoon, H. H. (2021). COVID-19: The effects of job insecurity on the job engagement and turnover intent of deluxe hotel employees and the moderating role of generational characteristics. International Journal of Hospitality Management, 92.
- Katadata. (2020, July 10). Pandemi Covid-19 memukul perusahaan digital – Startup [Covid-19 pandemic hits digital companies – Startups]. Katadata.co.id. (In Indonesian).
- Kumar, M., Jauhari, H., Rastogi, A., & Sivakumar, S. (2018). Managerial support for development and turnover intention: Roles of organizational support, work engagement and job satisfaction. Journal of Organizational Change Management, 31(1), 135-153.
- McCauley, C. D. (2019). Job challenge profile. Center for Creative Leadership.
- Northouse, P. G. (2016). Leadership: Theory and practice (7th ed.). Los Angeles: SAGE Publications.
- Ozturk, A., Karatepe, O. M., & Okumus, F. (2021). The effect of servant leadership on hotel employees’ behavioral consequences: Work engagement versus job satisfaction. International Journal of Hospitality Management, 97.
- Pratomo, A. G. (2016). 28 startup dapat kucuran dana Rp2,09 triliun [Startup receives funding of IDR 2.09 trillion]. (In Indonesian).
- Rabiul, M. K., & Yean, T. F. (2021). Leadership styles, motivating language, and work engagement: An empirical investigation of the hotel industry. International Journal of Hospitality Management, 92.
- Radic, A., Arjona-Fuentes, J. M., Ariza-Montes, A., Han, H., & Law, R. (2020). Job demands–job resources (JD-R) model, work engagement, and well-being of cruise ship employees. International Journal of Hospitality Management, 88.
- Rangrez, S. N., Amin, F., & Dixit, S. (2022). Influence of role stressors and job insecurity on turnover intentions in start-ups: Mediating role of job stress. Management and Labour Studies, 47(2), 199-215.
- Roldán, J. L., & Sánchez-Franco, M. J. (2012). Variance-based structural equation modeling: Guidelines for using partial least squares in information systems research. In Research Methodologies, Innovations and Philosophies in Software Systems Engineering and Information Systems (pp. 193-221). IGI Global.
- Sasikirana, M., Hadi, C., & Eko, M. (2023). Leadership style training intervention on perceptions of job performance assessment in managers at Bank BRI Regional Office Padang. International Journal of Research and Review, 10(4), 358-364.
- Schaufeli, W. B., Bakker, A. B., & van Rhenen, W. (2009). How changes in job demands and resources predict burnout, work engagement, and sickness absenteeism. Journal of Organizational Behavior, 30(7), 893-917.
- Schaufeli, W. B., Martínez, I. M., Pinto, A. M., Salanova, M., & Bakker, A. B. (2002). Burnout and engagement in university students: A cross-national study. Journal of Cross-Cultural Psychology, 33(5), 464-481.
- Schreurs, B., van Emmerik, H., Notelaers, G., & de Witte, H. (2010). Job insecurity and employee health: The buffering potential of job control and job self-efficacy. Work & Stress, 24(1), 56-72.
- Shin, Y., & Hur, W. M. (2021). When do job-insecure employees keep performing well? The buffering roles of help and prosocial motivation in the relationship between job insecurity, work engagement, and job performance. Journal of Business and Psychology, 36(4), 659-678.
- Skala, A. (2019). The start-up as a result of innovative entrepreneurship. In Digital Start-ups in Transition Economies (pp. 1-40). Springer International Publishing.
- Thompson, R., & Barclay, D. W. (1995). The partial least squares approach to causal modeling: Personal computer adoption and use as an illustration. Technology Studies, 2(2).
- Tomas, J., Maslić Seršić, D., & De Witte, H. (2019). Psychological climate predicting job insecurity through occupational self-efficacy. Personnel Review, 48(2), 360-380.
- Vinod Nair, A., McGregor, A., & Caputi, P. (2020). The impact of challenge and hindrance demands on burnout, work engagement, and presenteeism. A cross-sectional study using the job demands-resources model. Journal of Occupational and Environmental Medicine, 62(8), E392-E397.
- Vinzi, V. E., Chin, W. W., Henseler, J., & Wang, H. (2010). Handbook of partial least squares: Concepts, methods and applications. Springer.
- Wang, D., Kan, W., Qin, S., Zhao, C., Sun, Y., Mao, W., Bian, X., Ou, Y., Zhao, Z., & Hu, Y. (2021). How authentic leadership impacts on job insecurity: The multiple mediating role of psychological empowerment and psychological capital. Stress and Health, 37(1), 60-71.
- Wang, H. J., Le Blanc, P., Demerouti, E., Lu, C. Q., & Jiang, L. (2019). A social identity perspective on the association between leader-member exchange and job insecurity. European Journal of Work and Organizational Psychology, 28(6), 800-809.
- Wang, Q., Khan, S. N., Sajjad, M., Sarki, I. H., & Yaseen, M. N. (2023). Mediating role of entrepreneurial work-related strains and work engagement among job demand–resource model and success. Sustainability, 15(5), Article 4454.
- Zaech, S., & Baldegger, U. (2017). Leadership in start-ups. International Small Business Journal: Researching Entrepreneurship, 35(2), 157-177.
-
Effect of work motivation and job satisfaction on employee performance: Mediating role of employee engagement
Setyo Riyanto ,
Endri Endri 
,
Novita Herlisha
doi: http://dx.doi.org/10.21511/ppm.19(3).2021.14
Problems and Perspectives in Management Volume 19, 2021 Issue #3 pp. 162-174 Views: 9894 Downloads: 7852 TO CITE АНОТАЦІЯTechnological developments are things that must be followed by companies to achieve a competitive advantage to improve performance. To achieve and improve performance, companies need active employee engagement by encouraging motivation and fulfilling their job satisfaction. This study aims to analyze the effect of motivation and job satisfaction on performance with employee engagement as a mediating variable. The research sample is Information Technology (IT) companies located in the cities of Jakarta and Bandung, Indonesia. Research respondents are system developers who handle system development activities for a project or part of an ongoing project. By using the convenience sampling technique 103 responses were obtained from IT developers. The research model analysis method uses Partial Least Square (PLS) with SMART PLS Ver 3.0 software. Empirical findings prove that motivation has a positive effect on the performance of IT employees, while job satisfaction is independent. Employee engagement does not directly affect employee performance, but the effect of mediation through motivation and job satisfaction can have a significant effect on employee performance. The research findings have managerial implications, in increasing high employee involvement, motivation needs to be encouraged to be more active and innovative, and facilitate the achievement of the desired results.
Acknowledgment
This study was made possible because of the full support of the Region III Education Service Institute (LL-DIKTI III), the Ministry of Education and Culture of the Republic of Indonesia, and the Research Center at Mercu Buana University, Jakarta. -
Quantitative study of selected Facebook marketing communication engagement factors in the optics of different post types
Ľudovit Nastišin ,
Richard Fedorko ,
Vladimir Vavřečka ,
Radovan Bačik ,
Martin Rigelsky
doi: http://dx.doi.org/10.21511/im.15(3).2019.02
The objective of the research was to identify statistically significant differences in selected engagement indicators on Facebook – likes and shares in relation to the different types of content that brands on this platform add to. The analysis was performed on a sample of three global companies from the top 25 most valuable brands in the world and their posts. Using quantitative statistical methods – MANOVA (Multivariate analysis of variance) and Gammes-Howell post hoc test, a total of 1,280 brand posts were analyzed in order to differentiate the liking and sharing of content types. Data collection was carried out in the first half of 2018. The findings pointed to two statistically significant differences that were also interpreted in the discussion of the research. The findings have shown that in case of liking, in two cases out of three, there is a statistically significant difference in terms of the type of content added, when photos came out as those with the greatest potential to get like from Facebook users and fans. At the same time, the same finding appeared in the case of sharing, which is an even stronger form of engagement. Likewise, photos were shown to be the most promising in terms of potential content sharing by Facebook users and fans. The study provided some clues as to where this research should go further and explore the relationship more deeply in view of the more extensive quantitative research, and also the potential qualitative approach. The future research directions include analyzing companies of different types and sizes and also taking into account the contribution from other social networks with the same or similar engagement indicators.
-
Perceived health risk, online retail ethics, and consumer behavior within online shopping during the COVID-19 pandemic
Yuniarti Fihartini ,
Arief Helmi ,
Meydia Hassan ,
Yevis Marty Oesman
doi: http://dx.doi.org/10.21511/im.17(3).2021.02
Innovative Marketing Volume 17, 2021 Issue #3 pp. 17-29 Views: 4519 Downloads: 1730 TO CITE АНОТАЦІЯThe risk of virus contracting during the COVID-19 pandemic has changed consumer preference for online shopping to meet their daily needs than shopping in brick-and-mortar stores. Online shopping presents a different environment, atmosphere, and experience. The possibility of ethical violations is higher during online than face-to-face transactions. Therefore, this study was conducted to investigate the influence of perceived health risk and customer perception of online retail ethics on consumer online shopping behavior during the COVID-19 pandemic, involving seven variables, namely perceived health risk, security, privacy, non-deception, reliability fulfillment, service recovery, and online shopping behavior. The data were collected through an online survey by employing the purposive sampling technique to a consumer who has shopped online during the COVID-19 pandemic in Indonesia. 315 valid responses were obtained and analyzed through quantitative method using SEM-Amos. The results showed that perceived health risk and four variables of online retail ethics including security, privacy, reliability fulfillment, and service recovery affected online shopping behavior. Meanwhile, non-deception was found to have an insignificant effect. The coefficient value proved perceived health risk to be more dominant in influencing online shopping behavior than the variables of online retail ethics. Thus, consumers pay more concern for their health during online shopping. However, positive consumer perceptions of the behavior of online retail websites in providing services also can encourage consumers to shop online during this pandemic.
