Acta Acta Acta Acta logistica ogistica ogistica ogistica - International Scientific Journal about Logistics International Scientific Journal about Logistics International Scientific Journal about Logistics International Scientific Journal about Logistics Volume: 10 2023 Issue: 3 Pages: 463-476 ISSN 1339-5629 Employee engagement in logistics industry: a perspective in Indonesia Haryanto Haryanto, Harry Suharman, Poppy Sofia Koeswayo, Haryono Umar ~ 463 ~ Copyright © Acta Logistica, www.actalogistica.eu https://doi.org/10.22306/al.v10i3.419 Received: 18 Apr. 2023; Revised: 23 May 2023; Accepted: 20 June 2023 Employee engagement in logistics industry: a perspective in Indonesia Haryanto Haryanto Padjadjaran University, Jl. Dipati Ukur No. 35, Bandung, West Java 40132, Indonesia, haryanto2689@gmail.com, ORCID: 0000-0002-9040-6578, haryanto20001@mail.unpad.ac.id (corresponding author) Harry Suharman Padjadjaran University, Jl. Dipati Ukur No. 35, Bandung, West Java 40132, Indonesia, ORCID: 0000-0003-0787-0730, harry.suharman@unpad.ac.id Poppy Sofia Koeswayo Padjadjaran University, Jl. Dipati Ukur No. 35, Bandung, West Java 40132, Indonesia, ORCID: 0000-0002-7064-2602, poppy.sofia@unpad.ac.id Haryono Umar ABFI Institute Perbanas, Jl. Perbanas, Jakarta 12940, Indonesia, ORCID: 0000-0002-1204-6618, flamboyan24@gmail.com Keywords: logistic industry, leadership style, employee engagement, corporate reputation, internal control and corporate governance. Abstract: Indonesia has a lower employee engagement rate than other nations in Southeast Asia, and this phenomenon applies to all industries, including the logistics sector. The logistics industry generally contributes a critical portion of a nation's economy, so further study of the management effectiveness in logistics companies is essential. Any company requires a reliable workforce to function at its best. This research investigates some variables influencing employee engagement in the Indonesian logistics industry. The first variable is corporate governance; the second variable is internal control; corporate reputation is the third, where all these three are set as independent variables. The research also examines whether leadership style moderates the influences of the three independent variables on employee engagement. This study collected data research by distributing questionnaires to 742 respondents from 353 logistics firms. Statistical results came from the Partial Least Square-Structural Equation Modelling (PLS-SEM) method used in this study. The findings revealed that the three independent variables positively and significantly impacted employee engagement. The leadership style functioned as the moderating role in corporate governance’s impact and the corporate reputation’s effect proven in this research; in contrast, it did not apply to internal control’s impact. These results suggest that logistics companies in Indonesia can improve employee engagement by ensuring exemplary implementation of the three independent variables while adopting a leadership style that supports these efforts. 1 Introduction An important field of any national economic growth contributor is the logistics industry. According to [1], Indonesia’s logistics industries contributed 21.3% of the Gross Domestic Product (GDP) 2021. It indicates that this sector significantly contributes to the country’s economy, and its survival is critical. In 2018, Indonesia’s logistics performance index was ranked 46 th globally by The World Bank [2], categorizing it as one of the lowest regions. It indicates that this sector has substantial room for future growth, which must come from the government and private organizations. Companies must use their resources optimally to achieve corporate goals due to the increasing business competition [3]. This fact is also in addition to the need for change from conventional to digital-based companies with employee support. The pandemic also accelerated the necessity of transforming into a digital world, forcing all sectors to switch to digital-based operations immediately. The quality of human resources can be measured through employee engagement (EE), which shows how much they are psychologically and physically available [4]. High employee loyalty improves performance within the corporate space. This finding proves that a solid employee is required to strengthen the organization's competitiveness [5]. The new trend that emphasizes the necessity for employee engagement study is the frequent change of jobs by the millennial generation due to their lack of loyalty and concern about the work atmosphere rather than building a career and getting promoted while staying in the same workplace [6]. Secondly, most companies with open job vacancies need applicants with various work experience, and they expect newly recruited employees to adapt quickly to the environment without basic training [7]. Based on empirical evidence, most innovative companies with better customer service have higher stock performance and fewer employee resignations than their competitors [8]. Most leaders usually focus on the corporation's positive impact of high employee engagement because it significantly contributes to organizations, given its substantial role and numerous advantages. Gallup [9] stated that companies having more solid employee engagement grades outperform firms with low engagement rates in absenteeism, well-being, safety