Unraveling the Performance Mechanism: How Employee Engagement and Hierarchical Culture Foster Employee Performance through Vroom's Expectancy Motivation

Abstract

  Purpose – This study examines the effects of employee engagement and hierarchical culture on employee performance through the mediating role of Vroom’s expectancy motivation at PT Metal Hitech Engineering. The study addresses declining production achievement and employee performance by explaining the psychological mechanism through which organizational and behavioral factors enhance performance. Design/methodology/approach – A quantitative explanatory approach with a descriptive and verificative design was employed. Data were collected from all 250 employees using a total sampling technique and structured questionnaires. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The measurement model was evaluated through convergent validity, discriminant validity, and reliability tests, while the structural model was assessed using path coefficients, R², Q², and bootstrapping with 5,000 resamples. Finding/Results – The results indicate that employee engagement and hierarchical culture positively and significantly influence employee performance. Employee engagement significantly affects Vroom’s expectancy motivation (β = 0.453; p < 0.001), hierarchical culture positively influences motivation (β = 0.444; p < 0.001), and expectancy motivation significantly improves employee performance (β = 0.465; p < 0.001). Moreover, expectancy motivation partially mediates the relationships between employee engagement and performance (β = 0.211; p < 0.001) and between hierarchical culture and performance (β = 0.207; p < 0.001). Originality/Value – This study extends Expectancy Theory by integrating employee engagement, hierarchical culture, and Vroom’s expectancy motivation into a comprehensive model of employee performance in the manufacturing sector. The findings provide both theoretical insights and practical guidance for organizations seeking to improve performance through stronger employee engagement, structured organizational culture, and motivation-based human resource strategies.