Academic journal article Academy of Entrepreneurship Journal


Academic journal article Academy of Entrepreneurship Journal


Article excerpt


Entrepreneurship through small and medium enterprise (SME) has an important role for Indonesian economy because it could increase the economic growth of a country (Muafi, 2015; Sugandini et al., 2017). In order to survive in global competition nowadays, every SME should be able to improve the employee engagement in their company so that the company performance wills also increasing.

It is known that employee engagement has gotten attention from the practitioner in entrepreneurship because it is related to employee and business (Stroud, 2009). Employee engagement appears as development effort from previous concept such as employee work satisfaction, employee commitment and employee organizational behaviour. If the employee is actively involved in the company, then it means that the company has a positive work climate. This means that they have high enthusiasm to work; even sometimes they do far beyond their main job that is written in their working contract.

Employee engagement is a development from two previous concepts which are organizational commitment and organizational citizenship behaviour (OCB) (Robinson et al., 2004; Rafferty et al., 2005). The concept of employee engagement has similarity with both of the previous concept and sometimes the definition is overlapping. Robinson et al. (2004) stated that both of the previous concepts which are organizational commitment and OCB are not complete enough, so in the concept of employee engagement nowadays has includes business awareness. Rafferty et al. (2005) also differentiate between concept of employee engagement with the previous concepts, where the employee engagement is more showing the process of giving and accepting that is profitable for the employee and organization/company.

The previous researches are mostly focused to organizational commitment such as research of Hakanen et al. (2006) and Demerouti et al. (2001). Other than that, only found one study who studied two measurement of employee engagement (Saks, 2006). Researches of employee engagement are only focused to find the antecedents and consequences of employee engagement without paying attention to the theory that underlies that relationship. Most of the research result about this relationship shows a biased result, because the antecedents and consequences that were identified by the existence research is limited to the employee engagement which is relatively new in the research of organizational behaviour (Ellis and Sorensen, 2007; Macey and Schneider, 2008; Rafferty et al., 2005; Saks, 2006). This research is focused to the employee in leather craft centre SME in the Province of DIY, Indonesia. The interview research with some manager show a facts that there is a high employee turns over and low employee commitment to the organization. This becomes a trigger for the researcher to analyse the antecedents and consequences factor of employee engagement. The researcher also wants to give theory contribution to the development of antecedent and consequences variable of employee engagement that is not only have an impact to the organizational performance but also organizational commitment and LMX that is still rarely found in the previous research.


Work Satisfaction and Employee Engagement

Ali and Farooqi (2014) did a research that one of the goals is to analyse the effect of work satisfaction toward employee engagement on 207 public division employees in Gujranwala Sector University. The research result explained that work satisfaction become the cause of the existence of employee work engagement and employee performance. Biswas and Bhatnagar (2013) added that an employee who experienced pleasant emotional state in work place will feel more satisfied with their job. Employee engagement is potentially could be improved through the satisfied employee (Abraham, 2012a & 2012b). Work satisfaction is the antecedent from work engagement (Alarcon and Lyons, 2011; Barnes and Collier, 2013; Brunetto et al. …

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