EXPLORING THE EFFECT OF EMPLOYEE ENGAGEMENT ON THE SOCIAL ASPECT OF FIRM SUSTAINABILITY: EVIDENCE FROM THE MALAYSIAN CONSTRUCTION INDUSTRY

Abstract

This study examined how various dimensions of employee engagement influence the social sustainability of firms operating within the Malaysian construction industry. It focused on employees working in construction firms registered with the Construction Industry Development Board (CIDB) within the Federal State of Kuala Lumpur and Putrajaya. Simple random sampling was used for respondents selection followed by the distribution of an online questionnaire created using Google Forms. The data was analysed using Structural Equation Modelling via SmartPLS. The results indicated a favorable impact of behavioral employee engagement to firm social sustainability. In a broader sense, these findings shed light on the strategies required to enhance employee engagement for the sake of firm sustainability within the construction sector. It offers valuable insights into the leadership of construction organisations, specifically emphasising the significance of firm social sustainability and how it is influenced by employee engagement. A distinctive feature of this study is its segmentation of employee engagement into cognitive, behavioral, and emotional dimensions. Additionally, it addresses an aspect of sustainability that has received comparatively less attention—construction-related social sustainability—thus contributing to a more comprehensive understanding of the subject when compared to existing research.