IJCOPE Journal

UGC Logo DOI / ISO Logo

International Journal of Creative and Open Research in Engineering and Management

A Peer-Reviewed, Open-Access International Journal Supporting Multidisciplinary Research, Digital Publishing Standards, DOI Registration, and Academic Indexing.
Journal Information
ISSN: 3108-1754 (Online)
Crossref DOI: Available
ISO Certification: 9001:2015
Publication Fee: 599/- INR
Compliance: UGC Journal Norms
License: CC BY 4.0
Peer Review: Double Blind
Volume 02, Issue 05

Published on: May 2026

EFFECT OF EMPLOYEE ENGAGEMENT ON ORGANIZATIONAL PERFORMANCE

Dharshini V

Dr. Dinesh Babu Mahendiran

MBA School of Management Studies

Vels Institute of Science Technology & Advanced Studies Chennai
DOI:https://doi.org/10.55041/ijcope.v2i5.366

Article Status

Plagiarism Passed Peer Reviewed Open Access

Available Documents

Download PDF Review Report

Abstract

Employee engagement has emerged as a critical strategic lever for improving organizational performance in contemporary business environments. This study examines the effect of employee engagement on organizational performance, with innovative work behaviour serving as a mediating variable. Using a descriptive research design, primary data were collected from 200 employees working across multiple departments through a structured Likert-scale questionnaire measuring three constructs: Employee Engagement (Vigor, Absorption, Dedication), Innovative Work Behaviour (Generation, Exploration, Implementation), and Organizational Performance (Financial and Non-Financial). Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS 3 and 4. Findings reveal that employee engagement significantly and positively influences both innovative work behaviour (β = 0.764, p < 0.001) and organizational performance (β = 0.751, p < 0.001). Innovative work behaviour further mediates the engagement–performance relationship (β = 0.085, p < 0.001). The model explains 58.3% variance in innovative work behaviour and 70.3% variance in organizational performance, reflecting strong predictive power. The study recommends that organizations invest in structured engagement strategies, supportive leadership, and innovation-enabling work cultures to sustain high performance.

Keywords: Employee Engagement, Organizational Performance, Innovative Work Behaviour, PLS-SEM, Job Satisfaction, Vigor, Dedication, Absorption.

How to Cite this Paper

V, D. (2026). Effect of Employee Engagement on Organizational Performance. International Journal of Creative and Open Research in Engineering and Management, <i>02</i>(05). https://doi.org/10.55041/ijcope.v2i5.366

V, Dharshini. "Effect of Employee Engagement on Organizational Performance." International Journal of Creative and Open Research in Engineering and Management, vol. 02, no. 05, 2026, pp. . doi:https://doi.org/10.55041/ijcope.v2i5.366.

V, Dharshini. "Effect of Employee Engagement on Organizational Performance." International Journal of Creative and Open Research in Engineering and Management 02, no. 05 (2026). https://doi.org/https://doi.org/10.55041/ijcope.v2i5.366.

Search & Index

Google Scholar Crossref DOI ResearchGate

References


  1. Al-dalahmeh, M., Masa'deh, R., Abu Khalaf, R. K., & Obeidat, B. Y. (2018). The effect of employee engagement on organizational performance via the mediating role of job satisfaction: The case of IT employees in Jordanian banking sector. Modern Applied Science, 12(6), 17. https://doi.org/10.5539/MAS.V12N6P17

  2. Anwar, S., Tawab, R., & Sami, A. (2020). Impact of employee engagement on organisational performance: Systematic review of 2014–2019. Systematic Literature Review and Meta-Analysis Journal, 1(1), 1–6.

  3. Asma-Baño, A., Khatun, A., & Kumar, D. (2024). Examining drivers of engagement and employee engagement in relation to organizational performance: A study of banking sector in Hyderabad city. Migration Letters, 21(S3), 1067–1081.

  4. Badgel, A., Ramesh, A., Kulkarni, S. M., & Jadhav, M. V. S. The impact of employee engagement on organizational performance: A review. Journal of Science Engineering Technology and Management Science, ISSN 3049-0952.

  5. Bukagile, G. (2025). The effect of employee engagement on organisational performance: A case study of Muhimbili Orthopaedic Institute (MOI), Tanzania. African Journal of Empirical Research, 6(4), 701–709.

  6. Dhanda, U. (2015). Employee engagement: The key success factor. International Journal of Research, 3(5), 77–87.

  7. Islam, M., & Islam, S. (2021). Impact of employee engagement on organizational commitment and performance: A review of private companies in Bangladesh. Dhaka University Journal of Business Studies, 41–58.

  8. Kumari, R., & Sharma, K. (2018). Employee engagement: Factors affecting organizational excellence. International Journal of Advance Research, Ideas and Innovations in Technology, 4(4), 122–125.

  9. Muller, R., Smith, E. E., & Lillah, R. (2018). The impact of employee engagement on organisational performance: A balanced scorecard approach. International Journal of Economics and Finance, 10(2), 22–39.

  10. Rajendran, N., & Doraisamy, L. (2022). The impact of employee engagement on organizational performance: A study on Malaysian pharmaceutical organization. International Journal of Academic Research in Business & Social Sciences, 12(7).

Ethical Compliance & Review Process

  • •All submissions are screened under plagiarism detection.
  • •Review follows editorial policy.
  • •Authors retain copyright.
  • •Peer Review Type: Double-Blind Peer Review
  • •Published on: May 12 2026
CCBYNC

This article is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. You are free to share and adapt this work for non-commercial purposes with proper attribution.

View License
Back to Volume 02, Issue 05View All Issues Next Article

← Previous Article

Effect of Classroom Seating Arrangements on Student Participation

Next Article →

Effect of Influencer Marketing on Brand Awareness
Scroll to Top