How Does Business Owner’s Employee-Centric Leadership Affect SME Employees’ Work Engagement: The Mediating Role of “Diuwongke”

This study explores the relationship between perceived employee-centric and selfless leadership by business owners, commonly known as servant leadership, and work engagement among Indonesian SME employees. The research also investigates whether “diuwongke” (a Javanese-Indonesian term representing employees’ perception of being treated with dignity and respect at work) mediates the connection between perceived employee-centric leadership and work engagement. Employing an online self-administered questionnaire, this study incorporates measures associated with servant leadership, “diuwongke,” and work engagement. The sample comprises 147 respondents employed in various SMEs in Jakarta and surrounding cities, with all business owners identified as Javanese. The study employs a mediation model in the Hayes Process to analyze the data. The findings indicate a positive relationship between servant leadership and work engagement, with “diuwongke” mediating this connection. SME leaders are encouraged to adopt a servant leadership style to foster a sense of “diuwongke” among employees, consequently enhancing workplace engagement.