Heliyon 7 2021) 206902 (Contents lists available at ScienceDirect Heliyon Journal amepage: vor.celconihelivon Research article Investigating the effect of authentic leadership and employees’ ® psychological capital on work engagement: evidence from Indonesia her Risma Niswaty®, Hillman Wirawan"**, Haedar Akib", M. Said Saggaf, Dahyar Daraba® {The Bpuenen of Anse Seles Fut of Sel Secs Crests Net Maser, Makar, Suan Slade * he parent of Poel, Fcl of Med. Ube Noam, Maks Silane Selon, ose seh of aye Fay of Hea, Drak Onin, Gong Vira, Asi 08, SRMR and RMSEA- .09, GF and CFI close to 95 and Average Variance Extracted (AVE) higher than 50 for each dimension. Confirmatory Factor Analysis (CFA) confirmed the model was good fit (72/Af = 2.4, RMSEA .06, CFI = 95) with AVE was 58, .62, .52 and .61 for seléawarenes,2 Mwy a balanced processing, intemalized moral perspective, and relation: transparency respectively. The Componite Reliability (CR) was also ‘acceptable with all coeicients higher than .75 for each dimension. The Iner-item correlation with Alpha Gronbach yielded .86 for the full measure. The results suggested thatthe measure had a valid construct ‘and reliable for esearch purposes. 32.2, Psychological Capital Psychological Capital Questionnaire (short version oF PCQ Clathans ‘el, 2015) was used to measure Participants’ Ievel of PsyCap in four different dimensions (Le., Hope, Optimism, Resilience, and Efficacy). The scale has 12 items with three items for each dimension. Inthe previous validation studies, the PCQ satisfied validity and reliability standard for research purposes (Antunes eta, 2017; Géngens-Fkermans and Herbert, 2012). The seale response options ranged fom I (strongly disgrce) to 5 (strongly agree). The initial Bahasa Indonesia version of the POQ was retrieved from the scale publisher (Mind Garden). Using the same cutoff ‘rteria, this study found that the Confiematory Factor Analysis (CRA) ‘confirmed the model was close fit (7?/df = 2.6, RMSEA = 07, CF1=.90) ‘with AVE of £59, 67, 65, and .60 for Hope, Optimism, Resilience, and Efeacy, respectively. ll CRs were also acceptable (he, higher than.70) for each dimension. The alpha coefficient was .81 for the full-scale Inteitem correlations. The findings indicated that the Indonesia version of PCQ had an acceptable construct validity and was deemed reliable for research purposes 32.3. Work engagement ‘Work Engagement Scale (Sciufel! and Bakker, 2004) was used to measure employees Work Engagement. Like the other two measures, the scale went through a trnslate-back-translate procedure from English to Bahasa Indonesia, Based on the above cutoft criteria, the CFA results showed a good ft model (df = 2.8, RMSEA =.07, CFI =.95) with an ‘acceptable Alpha Gronbach (82) forthe fullscae inter-item correlations. ach dimension’ discriminant validity was also acceptable with AVE 65, (63, and .61 for Vigor, Dedication, and Absorption, respectively. The CR. ‘was also acceptable with a coefficient higher than .72 for each dime sion. The validation study supported that the data confirmed a three-factor structure with Vigor (six tems), Dedication (five items), and Absorption (six items). The items included “Time flies when I am working” and “Iam enthusiastic about my job.” Similarly, this sale also used a five-point Likert seale with response options from 1 (strongly lisagree) to 5 (strongly agree). Given the reals, the Work Engagement ‘Seale was valid and reliable for research purposes 4, Results and discussion 4.1, Results 4.1.1. Participants’ profile The following Table 1 desribed participants’ gender, job levels, and ‘education: ety 72021) 0592 ‘As seen in Table 1, most ofthe participants were male (62.5%) and 37-596 female. Nest, the data were collected mostly from junior staff and only 16 senior staf, In terms of education, 50% had a high school Aiploma because mos ofthe employees were reerulted after completing high schoo! and then enrolled in training and education forfour years. There were some (10.98%) who continued their education and held postgraduate degrees “Table 2 illustrates the participants age and tenure. Most participants, were in their late 20s and had worked for nearly six years, A small ‘numberof participants had worked for more than two deeades with age older than 50, These results indicated that the prtieipants represented various age and tenure groups 4.1.2. Descriptive statistics and corelarons In the fist step ofthe analysis, descriptive statistics and bivariate correlations were performed. The following Table 3 shows mean scores, standard deviations, and correlations between variables. AS seen in “Inble 3, all variables in this study were positively and significantly (p< £05 to p <.01) correlated with Authentic Leadership. Authentic Leadership was positively associated with PsyCap (r= 27, p< .01) and with Work Engagement (r= 38, p< 01), Similarly, PsyCap was positively associated with Work Engagement (r = .39, p < .01). Authentic Leadership and Work Engagement were positively associated with all PsyCap dimensions, except self-efficacy, while Authentic Lea: ership was positively associated with all Work Engagement dimensions. In addition, this study did not observe any significant correlations be: twwcen participants demographic variables with Authentic Leadership, Psyap, and Work Engagement. 4.1.3. Hypothesis esting using Souctural Equation Modeling (SEM) ‘To test the hypotheses, a Structural Equation Modeling (SEMD was employed using an IBM SPSS and AMOS statistical package (yee, 2001; ‘Weston and Gore, 2006). This study proposed a model in which Authentic Leadership directly predicted Work Engagement and indirectly via the role of employees’ PsyCap. ‘The proposed theoretical model was compared with another alternative model. The proposed model consisted of Authentic Lea: teship and PsyCap as predictors of Work Engagement where PsyCap mediated the relationship between Authentic Leadership and Work Engagement. The alternative model was employed to test if Authentic Leadership and PsyCap could improve the model if they were in the same factor. The model has a good ft IF thas a combination of 727A © 3, p >.05, RMSEA~ 09 and SRMR~ .09, and GF and CFI close to ‘95 (Bye, 2001; Ha and Bentler, 1999; Marsh and Balla, 1994 ‘Weston and Gore, 2006), Based on those criteria, the proposed theo: fetical model yielded a better fit (?/df ~ 2, p < .05, RMSEA ~ .07, SRMR = .07, GF = .95) than the altemative model (?/ar = 3, <.05, RMSEA = 09, SRMR = .09, CFI = 85). The results confirmed that Authentic Leadership directly contributed to Work Engagement or Indirectly via PsyCap. Please refer to the following Figure 2 for this studys empirical model. ‘Table 1. Partipants gender, job levels, ane eucaon Vera case Pee = ‘ener ‘ne 1 es Female n =s vase sult 176 our Manegenent 6 83 tocton asgrauate 21 109 Diploma 5 26 ih eo % 00 Note: N ~ 1922 Mwy a Table 2. Patcpans age and tema in ear. ‘Minimim ———_Manimom ‘lean Dion ie a @ MAD Note: N = 192 ‘Table 4 showed path coefficients of direct and indirect effets of Authentic Leadership on Work Engagement. All path coefficients were found to be positive and significant indicating that all proposed hy- potheses inthis study were supported. Therefore, Authentic Leadership positively predicted Work Engagement (Iiypothess 1) and PsyCap (iy pothesis 3), PsyCap postively predicted Work Engagement (Hypothesis 2), and PsyCap mediated the relationship between Authentic Leadership ‘and Work Engagement (!1ypothesis 4) The following Table 4 listed the path coefficients for each effect: 4.2. Discussion This study examined the effet of Authentic Leadership and PsyCap ‘on employees’ Work Engagement in the public sector. The indiccet effect, ‘of Authentic Leadership on Work Engagement was also investigated by ‘examining the mediating role of PsyCap. In general, this study conficmed the proposed theoretical model where Authentic Leadership diretly predicted Work Engagement or indirectly via PsyCap, The application of the JD-R model was confirmed as both type of resources (Le, Authentic Leadership and PsyCap) positively inluenced employees’ Work Engage ment. The JD-R model (Bakker, 2015 Bakker andl Demerouti, 2008) and the effortreward balance principle (Siegrist, 1996) emphasized that reward-ffort interaction should be balanced to give employees more ‘control over demanding work. Job and personal resources together provide employees with confidence control over exhausting job demand Gakker and Demerouti, 2007; Karasek, 1979; Xanthopoulou et al, 2000). Firstly, this study confirmed that Authentic Leadership positively predicted Work Engagement. Authentic leader characteristics allow a leader to better interact with their subordinates by exhibiting their authentic behaviors. For example, leaders may reveal that Uney have specific weaknesses, and they need support from others to achieve the ‘organization goals. Perceiving a leaders trustworthiness potentially en courages employees to engage at work as they receive support in ‘completing tasks. Authentic Leadership is also characterized by high self ety 72021) 0592 Figure 2 Epica model regulation (Walumbvea et al, 2010). This characteristic ensures em Ployees that they are working under a reliable boss. This study strengthened some previous findings where Authentic Leadership role was essential in predicting employees Work Engagement (Alok anc Israel, 2012; Walummbwa etal, 2010 Wang and Hsieh, 2013) (On the other hand, this study found that Authentic Leadership also, predicted employees! PsyCap. This particular finding was in line with some previous studies where Authentic Leadership contributed to em: ployees'PsyCap (Adil and Kamal, 2016; Rego et al, 2012, 2016; Wang etal, 2014; Woolley etal, 20115 Zubair and Kamal, 2015), Authentic Leaders provide supervisory support for employees’ selfdevelopment, and they focus on employees’ selFdevelopment (Walumbbw et al, 2010), Authentic Leadership potentially creates tremendous impact on employees! mental health, attitudes, and behaviors in the Indonesian public sectors. Leaders postive characteristics may direct employees selfdevelopment, improve their PsyCap, and restore potential resource loss, which i relevant to maintaining Work Engagement in Indonesian public organizations Furthermore, this study also confirmed that Authentic Leadership and PsyCap predicted Work Engagement. Like some recent studies in Indonesia (Daraba et aly 2021; Wirawan et aly, 2020), Authentic Leadership and PsyCap were significant predictors for employees’ at tudes and performance. Hosvever, some jobs (eg. military, mses) requite a particular type of resource (e.., positive supervisory behav: fors) over the others. For example, employees in the public sector might experience greater supervisory support tan thee postve pycolog Although leadership and psychological states had some positive ef feets on Work Engagement, in this study Authentic Leadership out performed the effect of PsyCap. In contrast, Wirawan et al. (2020) found ‘hatin some business organizations, the effect of PsyCap was stronger than Authentic Leadership, and the effects were mediated by employees job satisfaction, while in this current study Authentic Leadership and PoyCap directly predicted employees’ Work Engagement and PsyCap Table 3. Deseriptve stasis and eoerelations ie vant sea es va Fo eT i os oT © PyG@pTomt ez 755 aT 25H ae 7 Papi 1295 20 ae 5 PyGptige 22 ee ee 8 PxCpRatiene 1205 Las at a a 7a" ae awe 10 Peycapopinim sts az 2 as 7 date ae are 14 WeAbortion 21784256 10 maa Note: = 192, =p < 005, *#p < 001, M = Mean, SD = Standard Deviation [AL= Authentic Leadership, SE ~ Self Auth, IMP PsyGap ~ Psychological Capt, WE ~ Work Engagement internalized Moral Perspective, BP Ralanced Processing, RT — Relational eanepaeney2 Mwy a ety 72021) 0592 Table 4, Path coefficients of direct and indirect ees be ah imate Dist -Authestetadesip = Week Eagaemen a ycap ~ Wok ngage a atest eaesip ~ Psyap a0" Indie Authentic eneshp Py Work ngage aa 92, "p< 0.04. ‘could also mediate the effect of Authentic Leadership on Work Engage ment. Authentic Leadership had a stronger effet on Work Engagement than PsyCap, and it also directly influenced employees’ PsyCap. Em: ployees could view their leaders’ positive attitudes asa great source of ‘support more than their personal resources. Authentic Leadership stim ulated subordinates confidence and made them believe that they were supported Unlike other previous findings in business contexts (Wirawan eta, 2020) and publie sectors (Dara etal, 2021; Saleh eta, 2020; Tamar et al, 2020), this study focused on the direct effect of both leaders! Positive characteristics and employees psychological states on Work Engagement in public organisations. The results confirmed the dominant cffcet of leadership over employees! positive psychologial states. In different contexts, such asin busines, education, or hospitality, the effect, ‘of leaders’ positive behaviours and postive psychological states could ‘also change and it might depend on how subordinates value different resourees. Also, in atime of eriss employees potentially expect more support ffom leaders than from their personal resourees (Diran ct al, 2020) ‘The significant positive impact of Authentic Leadership on PsyCap and Work Engagement is shaped by how subordinates perceive their leaders (Bies et al, 2016). The magnitude of resources might be ‘determined by how subordinates perceive support from supervisor, ‘organization, and their own psychological states, Cultural dimensions (eg power distance) can accentuate some resources over others and finally influences many aspects of employees: work-life. This notion ‘appeared to be the case in Indonesia's public organizations. Some public organizations were dominated by high power distance and collectivism in which leadership significantly determines employee ‘outcomes (Hever et ail, 1999} Irawanto, 2009). While the role of power distance showed a dovnward trend in. Indonesia's private sectors (Viewer ct al, 1999) and consequently weakened the ‘Authentle Leaderships effect in business sectors (Wirawan et al, 12020), the role of Authentic Leadership could be more potent in Indonesia's public sectors. Supportive leaders! behaviors, such as Authentic Leadership, are ‘essential for helping employees coping with excessive stress. and Improving their wellbeing, performance, and turnover (arms et al, 2014). Although many tasks exposed employees, they would have ‘enough resources to deal with job demands, which later inereased the! ‘engagement, A reliable and credible leader provides employees with psychological (eg, efficacy) and job resources (eg, leadership support) {hat help employees strive in ther daily work routine Beyond the leadership role, many studies have suggested that PsyCap provided personal resourees for employees ane improved employees! ‘engagement (Chen, 2015; Pack et al, 2015; Simons and Buitendach, 2013 Thompson etal, 2015) PsyCap serves as employees psychological resources. Regardless of the (ype of organization, PsyCap consistently provides support for employees across different organizational contexts ‘As previously mentioned, Authentic Leadership might influence the ‘emergence of positive paychologial states and consequently contributes to many desirable employees outcomes, including Work Engagement. “Therefore, although the effect was slightly lower than Authentic Lead ‘ership, PssCap should still be considered a significant predictor for em- ployees Work Engagement. 43. Implications In terms of theoretical contribution, this study shed fi importance of Authentic Leadership on employees’ psychological states and engagement in public organizations. In addition, this study also supported that PsyCap also contributed significant variances to em: ployees! Work Engagement. However, itis believed that Authentic Leadership plays more vital roles than employees personal resources in Indonesia's public organizations. Authentic Leadership can dicectly in: fluence Work Engagement while fostering employees! PxyCap, which eventually also increases Work Engagement, rom a practical point of view, human resources practitioners should farther understand how: to develop employee engagement by considering various resources. Work Engagement emerges as the results of exerting resources to cope with high job demands, In this sense, the lack of re sources will adversely Impact employee engagement. Public organiza tions in Indonesia are still influenced by high power distance, and consequently, the dominant roles of authority figures are largely toler ate. Followers rely on authority and the leaders decision. Employees are prone to perceive leaders as ther preferable resource because thei roles determine employees psychological states, engagement and. perfor ‘mance. Thus, Authentic Leadership in public sectors has a double impact ‘on employees’ outcomes. First, it helps foster employees! positive psy chological states, and second, it ensures employees to have enough re sourees to face challenging work demand. Human Resources practitioners should take the above discussion into account to design engagement programs in public organizations. They ‘must start a identifying values and approaches in managing human re sources, The most influential resources should be understood to nurture its effect on engagement effectively. Besides, some organizations may benefit from exerting their employees’ psychological resources, while thers depend on jb resources (e.g, leadership roe). For example, oF ganizations with a semi-military approach (eg. department of law and human rights, department of immigration) influence their employees engagement throughout leadership roles. Practitioners can focus on developing Authentic Leadership these public organizations inorder to Improve Work Engagement effectively. Hence, PsyCap should also be iewed a an integral part of designing employees engagement prograns in public organizations. Although PsyCap was primarily influenced by ‘Authentic Leadership, it directly determines employees’ Work Engagement 44, Limitacons and funure esearch directions Firstly, the data were collected from amain public sevice office inthe easter part of Indonesia. Although the data seemed sufficient to ‘generate conclusions regarding the effect of leadership and psychological esources, generalization should be made with caution. The sample could be insufficient o generalize the results across diferent countries or cultures. Therefore, future studies should include a bigger sample size across diferent organizational types. Secondly, i is beyond this studys Scope to investigate the ole of moderating variables inthe relationships. ‘This study focused on the effect of Authentic Leadership on Work Engagement va the roe of PsyCap. Future studies should consider some moderating variables to fully understand the effect of job and personal2 Mwy a ‘resources on engagement. For instance, the study could include the role ‘of Leader-Member Exchange (LMX), Implicit Leadership Theory, orga- ‘ization size, individual differences and perceived crsisin organization. 5. Conclusions ‘This study was designed to investigate the effect of Authentic Lead: ‘ership on Work Engagement via the role of employees! PsyCap in an Indonesian public organization. This stady conchided that Authentic Leadership and PsyCap directly predicted employee's Work Engagement ‘and PsyCap mediated the relationship berween Authentic Leadership and ‘Work Engagement. Authentic Leadership played important roles in ‘developing subordinates! PayCap. Leaders with authentie characteristics ‘also provide necessary resources for employees to cope with exhausted {job demands. This study has als contributed to our understanding of the pplication ofthe JD-R model in Indonesian public organizations. Inthe Indonesia context, pubic organizations could have been dominated by ‘authority figures as a result of a high power distance. Thi condition Targly inflienced the effect of Authentic Leadership on employee's PsyCap and Work Engagement. Leaders! authenticity may protect fo Towers ftom further resource loss by displaying postive supervisory support. Authentic leaders also help employees maintain their resources to deal with demanding tasks in organizations, Declarations Author contribution statement Risma Niswaty: Conceived and designed the experiments; Performed, the experiments; Analyzed and interpreted the data; Contributed re ‘agents, materials, analysis tools or data; Wrote the paper. Haedar Akib: Performed the experiments, Analyzed and interpreted the data; Contributed reagents, materials, analysis tools or data 'M. Sal Sagga: Conceived and designed the experiments; Performed, the experiments Hillman Wirawan: Conceived and designed the experiments; ‘Analyzed and interpreted the data; Contributed reagents, materials, ‘analysis tools or data; Wrote the paper. Dayar Daraba: Conceived andl designed the experiments, nding statement ‘Thisresearch did not receive any speifi grant from funding agencies {nthe public, commercial, or not-for-profit sectors Data availabilty statement ‘The authors do not have permission to share data. Declaration of interests statement ‘The authors declare no confit of interest. Additional information [No additional information is available for this paper. References All Xamay A, 2016, mpset of peel capital and anh ede 08 ‘wi enqgent tnd) cat aeive wong Pe ayo es 31 (0, Alarcon, Lye J, Tarai F, 2010, Undentnding prediters of engagement inh aly. yced 22201 310. ‘Ab Kal 2012 Auten leadership & work engage dan Jn la "7 (9, 98 10. ety 72021) 0592 “Anunkte, 5. 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