Digital Competencies and Flexible Work Practices as Performance Determinants Through Textile Center Employee Engagement

Agustina Novitasari Simhanandi; Subagyo Subagyo; M Anas

doi:10.55227/ijhess.v5i2.1881

Authors

Agustina Novitasari Simhanandi Master of Economics Education, Postgraduate, Universitas Nusantara PGRI Kediri, Indonesia
Subagyo Subagyo Master of Economics Education, Postgraduate, Universitas Nusantara PGRI Kediri, Indonesia
M Anas Master of Economics Education, Postgraduate, Universitas Nusantara PGRI Kediri, Indonesia

DOI:

https://doi.org/10.55227/ijhess.v5i2.1881

Keywords:

Digital Competence, Flexible Work Practices, Employee Engagement, Employee Performance, Textile Industry

Abstract

The era of digitalization requires the adaptation of organizations, including the MSME sector, in integrating technology, but there are still obstacles in its implementation. Micro, Small and Medium Enterprises in the mosquito net and curtain textile industry in Blawe Village are experiencing problems related to the weak digital capabilities of employees and the implementation of a less flexible work system, thus affecting business productivity and competitiveness. This study aims to examine the relationship between digital competency development, flexible work practices, and employee performance by involving employee involvement as mediators. The method used is a quantitative approach of the type of explanatory survey of 111 MSME workers with purposive sampling techniques with SEM-PLS analysis and the SmartPLS 4.0 application. The results of the study showed that all hypotheses proved to be positive significantly. Digital competence has a significant effect on employee engagement (β=0.344; p=0.001) and employee performance (β=0.174; p=0.010). Flexible work practices had a significant effect on employee engagement (β=0.409; p=0.001) and employee performance (β=0.258; p=0.001). Employee involvement had a significant effect on employee performance (β=0.507; p=0.000). The mediating effect of employee engagement was also shown to be significant on the digital competency pathway on performance (β=0.174; p=0.009) and flexible work practices on performance (β=0.208; p=0.001). In conclusion, the development of digital capabilities and flexible work practices have a strategic role in increasing employee productivity in the center of the mosquito net and curtain industry in Blawe Village, both through direct and indirect influences

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