Leadership styles and job insecurity in Indonesian start-ups: The role of challenges and engagement

  • 36 Views
  • 5 Downloads

Creative Commons License
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.

view full abstract hide full abstract
    • 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
    • Conceptualization
      Abiqail Yolanda, Jefta Harlianto, Anita Maharani
    • Formal Analysis
      Abiqail Yolanda, Ady Purnama
    • Investigation
      Abiqail Yolanda, Ady Purnama, Jefta Harlianto
    • Methodology
      Abiqail Yolanda, Jefta Harlianto
    • Resources
      Abiqail Yolanda, Ady Purnama, Jefta Harlianto, Anita Maharani
    • Writing – original draft
      Abiqail Yolanda
    • Writing – review & editing
      Abiqail Yolanda, Ady Purnama, Jefta Harlianto, Anita Maharani
    • Project administration
      Ady Purnama
    • Software
      Ady Purnama
    • Data curation
      Jefta Harlianto
    • Supervision
      Jefta Harlianto, Anita Maharani
    • Validation
      Jefta Harlianto, Anita Maharani