Does work engagement mediate the relationship between psychological capital and employee well-being during organizational crisis? Evidence from Indonesian employees

Hawabi, Agus Iqbal ORCID: https://orcid.org/0000-0003-0991-8953, Cholili, Abd Hamid ORCID: https://orcid.org/0000-0003-3495-2993 and Faisati, Malik Maya (2026) Does work engagement mediate the relationship between psychological capital and employee well-being during organizational crisis? Evidence from Indonesian employees. Asian Journal of Management Entrepreneurship and Social Science, 6 (3). pp. 4937-4953. ISSN 2808 7399

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Abstract

Organizational crises characterized by uncertainty and rapid change have raised
significant concerns regarding employee well-being. This study examines the relationship
between Psychological Capital and employee well-being by investigating the mediating role of
work engagement among Indonesian employees. Employing a quantitative cross-sectional
design, data were collected from 508 employees actively experiencing organizational change
and uncertainty. The instruments included a 24-item Psychological Capital scale, a 9-item
Utrecht Work Engagement Scale, and an 18-item employee well-being scale. Regression-based
mediation analysis revealed that Psychological Capital did not have a significant direct effect
on either employee well-being or work engagement. Consequently, work engagement did not
mediate this relationship. However, work engagement demonstrated a strong, positive, and
significant direct influence on employee well-being. Furthermore, a simultaneous regression
model explained 86.4% of the variance in employee well-being, with work engagement serving
as the primary predictor. These findings suggest that during organizational crises,
Psychological Capital alone is insufficient to enhance employee well-being unless accompanied
by strong work engagement and adequate organizational resources, highlighting the critical
strategic role of work engagement in maintaining workforce wellness during uncertainty.

Item Type:	Journal Article
Keywords:	Psychological Capital; Work Engagement; Employee Well-Being
Subjects:	17 PSYCHOLOGY AND COGNITIVE SCIENCES > 1701 Psychology > 170107 Industrial and Organisational Psychology 17 PSYCHOLOGY AND COGNITIVE SCIENCES > 1701 Psychology > 170110 Psychological Methodology, Design and Analysis 17 PSYCHOLOGY AND COGNITIVE SCIENCES > 1701 Psychology > 170113 Social and Community Psychology 17 PSYCHOLOGY AND COGNITIVE SCIENCES > 1701 Psychology
Divisions:	Faculty of Psychology
Depositing User:	Abd. Hamid Cholili
Date Deposited:	30 Jul 2026 14:36

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