Yudistira, Tommy (2025) EVALUATING THE IMPACT OF ORGANIZATIONAL CULTURE AND HUMAN RESOURCES PRACTICES ON BUSINESS PERFORMANCE MEDIATED BY EMPLOYEE ENGAGEMENT IN THE CONSTRUCTION INDUSTRY. Graduate thesis, Institut IPMI.

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Abstract

Over the past two decades, Indonesia has experienced a notable surge in its construction sector, primarily propelled by increased investments in infrastructure, rapid urbanization, and overall economic expansion. This growth has drawn the attention of significant stakeholders, both domestic and international, thereby reshaping the industry's landscape. An overview of this dynamic sector reveals its dominance by key entities such as state-owned enterprises like PT Wijaya Karya (Wika) and PT Pembangunan Perumahan (PP), alongside prominent private corporations like PT Agung Podomoro Land and PT Lippo Karawaci. This study aims to determine the effect of organizational culture and Human Resources Management practices on employee engagement, the effect of employee engagement, organizational culture, and Human Resources Management practices on business performance. And to determine whether engagement can mediate organizational culture and Human Resources Management practices on business performance. This study uses a quantitative approach with a population of employees of the office division or project, totaling 710 individuals. The sample in this study consisted of 249 respondents who were obtained using Krejcie and Morgan's sampling method. The analysis method used in this study is SEM-PLS with an analysis tool, namely SMART-PLS. The findings reveal that both organizational culture and HR practices significantly influence employee engagement and business performance. Moreover, employee engagement is found to play a mediating role, strengthening the effect of organizational culture and HR practices on business outcomes. The novelty of this research lies in its integration of the Resource- Based View (RBV) and the job demands resources model, providing empirical evidence that intangible resources such as HR practices and organizational culture can be transformed into sustainable competitive advantage through employee engagement. This study extends the external engagement and HRM theories within the under explored context of the Indonesian construction industry. This research contributes by positioning employee engagement not only as an outcome of HR strategies but also as a strategic mediator that converts organizational culture and HR practices into tangible performance improvements. The findings offer insights for construction companies in Indonesia to strengthen their culture and HR systems in order to foster employee engagement and enhance overall business performance. Keywords: Organizational Culture, Human Resources, Employee Engagement, Business Performance.

Item Type:	Thesis (Graduate)
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Thesis > Master of Business Administration
Depositing User:	Dwi Selviyana
Date Deposited:	17 Dec 2025 02:57
Last Modified:	17 Dec 2025 02:57
URI:	http://repository.ipmi.ac.id/id/eprint/2892

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