The research was conducted by Endah Wiyati, Attrie Charis Immanuel, I Made Suparta, and Mohammad Sihab Ridwan, all affiliated with Universitas 17 Agustus 1945 Surabaya. Their findings were published in the Formosa Journal of Business and Economic Statistics (FJBES) and offer practical insights for cooperatives and businesses facing increasing economic uncertainty and workforce challenges.
The study arrives at a critical moment for organizations across Indonesia. Cooperatives and companies alike are operating in an environment characterized by rapid market changes, shifting consumer expectations, and growing competition. These pressures have forced organizations to rethink traditional management approaches and prioritize employee well-being as a strategic asset rather than merely an administrative concern.
Internal records from Koperasi KAREB revealed warning signs that prompted the investigation. Between 2024 and 2025, employee absenteeism and tardiness increased from 1.2 percent to 3.0 percent, indicating declining employee engagement. During the same period, employee perceptions of organizational support fell from an "excellent" category of 85–90 percent to only 80 percent, while participation and autonomy levels also gradually decreased.
According to the researchers, these trends suggested that employees increasingly felt less supported and less involved in workplace decision-making, conditions that can weaken motivation and productivity.
To better understand the issue, the researchers surveyed 123 permanent employees from Koperasi KAREB. All participants held at least a diploma or bachelor's degree. Data were collected through online questionnaires and analyzed using statistical techniques designed to examine how different workplace factors interact and influence employee performance.
The findings consistently showed that all three workplace factors examined—job crafting, perceived organizational support, and psychological empowerment—had significant positive effects on both employee engagement and employee performance.
Among the most important findings were:
- Employees who actively modify or redesign aspects of their jobs, a behavior known as job crafting, reported stronger engagement and higher performance.
- Employees who perceived strong support from their organization demonstrated greater commitment and productivity.
- Psychological empowerment emerged as the strongest predictor of employee engagement.
- Employee engagement significantly enhanced performance and acted as a bridge connecting organizational practices with employee outcomes.
- Together, the variables studied explained 59.5 percent of employee performance variations, indicating that workplace support and empowerment play a substantial role in organizational success.
The research highlights psychological empowerment as particularly important for long-term organizational resilience. Employees who perceive their work as meaningful, believe in their own competence, and feel capable of influencing workplace outcomes are more likely to remain dedicated and productive.
The researchers argue that employee engagement serves as the central mechanism through which organizational resources are transformed into superior performance.
"Psychological empowerment was identified as a primary engine for long-term success," the authors from Universitas 17 Agustus 1945 Surabaya wrote in their study. They noted that when employees experience meaning, competence, autonomy, and impact in their jobs, their internal motivation becomes a reliable driver of sustained organizational performance.
The study also reinforces established organizational theories. Drawing on the Job Demands-Resources (JD-R) framework and Social Exchange Theory, the researchers explain that employees tend to reciprocate organizational support with stronger engagement and better performance. In practical terms, when organizations invest in their employees through recognition, trust, and autonomy, employees often respond with greater loyalty, energy, and productivity.
The implications extend far beyond Koperasi KAREB.
For businesses and cooperatives, the findings suggest that improving performance is not solely a matter of increasing supervision or imposing stricter procedures. Instead, organizations may achieve better results by creating environments that encourage initiative, recognize employee contributions, and provide meaningful decision-making authority.
The researchers recommend that organizations institutionalize employee support systems, implement transparent recognition and feedback mechanisms, and adopt leadership styles that decentralize decision-making. Formal programs that encourage job crafting and strengthen employee engagement may also help organizations build more resilient workforces.
As labor markets become increasingly competitive, organizations that empower employees rather than simply manage them could gain a significant strategic advantage.
The study further suggests that human-centered management practices may become essential for maintaining productivity and retaining talented employees in the future.
Author Profiles
Endah Wiyati, S.E., M.M. is a researcher and academic at the Faculty of Economics and Business, Universitas 17 Agustus 1945 Surabaya. Her expertise focuses on human resource management and organizational behavior.
Attrie Charis Immanuel, S.E., M.M. is a lecturer at the Faculty of Economics and Business, Universitas 17 Agustus 1945 Surabaya, specializing in organizational management and human resource development.
I Made Suparta, S.E., M.M. is an academic at Universitas 17 Agustus 1945 Surabaya with research interests in strategic management and organizational studies.
Mohammad Sihab Ridwan, S.E., M.M. is a lecturer and researcher at the Faculty of Economics and Business, Universitas 17 Agustus 1945 Surabaya. His research focuses on human resource management, employee performance, and organizational behavior.
Source
Article Title: The Influence of Job Crafting, Perceived Organizational Support, and Psychological Empowerment on Employee Performance Through Employee Engagement as an Intervening Variable at Koperasi Kareb
Journal: Formosa Journal of Business and Economic Statistics (FJBES)
Year: 2026
Authors: Endah Wiyati, Attrie Charis Immanuel, I Made Suparta, Mohammad Sihab Ridwan
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