Unlocking the Potential of SMEs: The Mediating Role of Job Satisfaction in the Relationship Between Employee Engagement and Well-being on Organizational Commitment

Abstract

Purpose: This Research to analyze “The Mediating Role of Job Satisfaction in the Relationship Between Employee Engagement and Well-being on Organizational Commitment”. Theoretical Reference: The study was conducted on the food industry in Indonesia using a quantitative approach, and responses from 347 employees. Method: The analysis technique used is structural equation modeling (SEM) using SmartPLS software. Result and Conclusion: Employee Engagement has a positive influence on job satisfaction, but does not have a significant relationship with Organizational Commitment. Meanwhile, Employee Well-Being was positively associated with job satisfaction but did not have a significant correlation with Organizational Commitment. Furthermore, it was found that job satisfaction is positively related to organizational commitment. In the context of mediation, Job Satisfaction is proven to mediate the relationship between Employee Engagement and Organizational Commitment, as well as between Employee well-being and Organizational Commitment. Therefore, to increase organizational commitment, organizations can focus on efforts to increase job satisfaction, especially through strengthening employee engagement. Implications of Research: Owners and managers focus on improving employee engagement and employee well-being to increase job satisfaction. Increased job satisfaction can contribute positively to organizational commitment. Understanding that job satisfaction mediates the relationship between employee engagement and organizational commitment, as well as between employee well-being and organizational commitment, provides the foundation for the development of effective human resource management strategies. This includes the creation of a supportive work environment, attention to employee well-being, and ensuring active involvement in the work. This effort is expected to improve organizational performance and strengthen employee commitment to food SMEs in Indonesia. Value: The novelty of this study is the inconsistently of results in the previous article.