The impact of corporate governance, internal control and corporate reputation on employee engagement: a moderating role of leadership style

Abstract

This study investigates the interplay between Corporate Governance, Internal Control, Corporate Reputation, and Employee Engagement, focusing on the moderating role of different leadership styles. Empirical findings indicate that Corporate Governance, Internal Control, and Corporate Reputation are positively and significantly associated with Employee Engagement. The study further delves into the nuances of leadership styles, democratic, bureaucratic, laissez-faire, and authoritarian, and their distinct moderating effects on these relationships. Democratic leadership was found to enhance the linkage between Corporate Governance, Internal Control, Corporate Reputation, and Employee Engagement. In contrast, the bureaucratic and laissez-faire styles primarily moderated the effects of Internal Control and Corporate Reputation on Employee Engagement. Additionally, authoritarian leadership strongly moderates the relationship between Corporate Governance, Internal Control, and Employee Engagement. These findings suggest that leadership style is crucial in determining the effectiveness of corporate governance mechanisms, internal controls, and reputation management in promoting employee engagement. The study contributes to the broader discourse on organizational behavior and human resource management, offering insights for practitioners and scholars interested in optimizing employee engagement through strategic leadership and organizational practices.