Creating Shared Value and Environmental Commitment Shape Employee Sustainable Performance Through Stakeholder Engagement
DOI:
https://doi.org/10.59261/bustechno.v7i4.789Keywords:
Creating Shared Value, Employee Sustainable Performance, Environmental Commitment, PLS-SEM, Stakeholder EngagementAbstract
Background: Sustainable employee performance has become a crucial factor for pharmaceutical firms confronting competitive dynamics, supply chain fragility, and escalating sustainability demands.
Objective: This research investigates the influence of Creating Shared Value and Environmental Commitment on Employee Sustainable Performance, both directly and through the mediating role of Stakeholder Engagement, at PT Kimia Farma Tbk.
Method: An explanatory quantitative survey approach was applied to 300 eligible employees recruited through purposive sampling. The collected data were analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 3.0 software to examine the measurement model, structural relationships, and mediating mechanisms.
Results: The results demonstrate that both Creating Shared Value and Environmental Commitment exert positive and statistically significant direct effects on Employee Sustainable Performance and Stakeholder Engagement. Stakeholder Engagement likewise has a positive and significant effect on Employee Sustainable Performance and significantly mediates both sustainability strategy relationships. These results indicate that sustainability initiatives become more meaningful to employees when stakeholders participate through communication, collaboration, and support. Rather than functioning solely as corporate policies, shared value and environmental commitments are translated into sustained employee behavior through engagement.
Conclusion: The study contributes by positioning Stakeholder Engagement as an organizational mechanism connecting corporate sustainability strategy with employee-level outcomes in an Indonesian pharmaceutical company. Practically, PT Kimia Farma Tbk should strengthen two-way communication, stakeholder participation, and the integration of environmental responsibilities into daily work processes to support consistent, responsible, and sustainable employee performance.
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