Innovative Work Behavior Shaped by Learning Organization and

Employee Engagement as Mediating Variable: A Case Study on

Manufacturing Corporation

Rianti Setyawasih, Hamidah and Agung Dharmawan Buchdadi

Doctoral Management Study Programme of Post Graduate Department, Universitas Negeri Jakarta, Indonesia

Keywords: Innovative Work Behavior, Learning Organization, Employee Engagement.

Abstract: This study aimed to examine and analyze the innovative work behavior formed by learning organization and

employee engagement in manufacturing companies in Indonesia. The study also aimed to examine the

mediating effect of employee engagement. The survey was conducted on 254 employee learners who work in

automotive manufacturing companies in Indonesia. The data were analyzed by using the structural equation

modeling technique (Structural Equation Modeling) using the AMOS program. The results show that learning

organization has a positive direct or indirect effect on innovative work behavior. More interestingly, employee

engagement partially mediates the relationship between organizational learning and innovative work

behavior. This study contributes to the growing literature on how Human Resources managers in

manufacturing companies promote innovative work behavior among their employees through learning

organization and by strengthening employee engagement. The findings of this study can contribute to the

literature on Human Resource Management in manufacturing companies, especially in Indonesia.

1 INTRODUCTION

The current business situation which is marked by

volatility, uncertainty, complexity, and ambiguity

(VUCA) coupled with the Covid-19 pandemic can

disrupt the continuity of companies’ business. It is

companies that are able to adapt quickly that can

maintain long term sustainability. Therefore, a good

strategy is needed to face various challenges from

competitors and current global condition. Based on

the Global Innovation Index (GII) issued by the

World Economic Forum in 2021

(https://www.weforum.org), Indonesia's rank has

dropped from 85 in 2020 to 87 in 2021. The rank in

the market sophistication area is already good,

however the business sophistication area is still

lacking. Thus, it can be interpreted that Indonesia is

an attractive place to sell products, but since domestic

businesses are not able to take advantage of and

balance the already sophisticated market, this

opportunity is exploited by external parties instead.

The existence of a company is determined by its

ability to innovate that based on its employees’ ideas.

Therefore, company leaders need to create a

conducive environment to motivate their employees

to practice innovative work behavior, which in turn

will give birth to more innovation. Innovative Work

Behavior (IWB) is inseparable 1 from innovation

itself. Innovation is one of the changes that have

specificity; it involves the application of a new idea

in the development of a product, process, or service.

Thus, all innovations implies change, but not all

changes involve new ideas or lead to real

improvements. Innovations can range from small

improvements to radical breakthroughs (Robbins &

Judge, 2014).

Innovative work behavior is the behavior of an

individual which is aimed at introducing and adding

new and useful ideas, processes, and products into

their work environment (Mura et al., 2012) .

Employee’s innovative behavior refers to the

initiation process and the existence of an intention to

introduce new ideas that can be used in solving

problems. This behavior leads to the improvement of

products, services or processes; improving the quality

of goods and services or the effectiveness of a

process; emergence of ideas (creativity); and the

application of a work group or an organization.

Innovative behavior requires time investment and

takes up formal work time; involves risks that can

132

Setyawasih, R., Hamidah, . and Dharmawan Buchdadi, A.

Innovative Work Behavior Shaped by Learning Organization and Employee Engagement as Mediating Variable: A Case Study on Manufacturing Corporation.

DOI: 10.5220/0011247900003376

In Proceedings of the 2nd International Conference on Recent Innovations (ICRI 2021), pages 132-140

ISBN: 978-989-758-602-6

affect reputation and friendship, or cause loss of job;

and requires proactivity, namely the behavior of

being a pioneer, striving to lead rather than follow,

and the initiative to take one's own steps. HRM

practices and systems are expected to build a

supportive environment within a company so that

social interaction and interdependence are formed

among employees while carrying out their duties.

Social interaction and interdependence will form

informal learning activities and an interactive

atmosphere. This situation will shape innovative

behavior at the individual level and subsequently

build innovation in the company (Shipton et al.,

2016).

Organizations currently rely more on

empowerment and delegation to their employees by

giving them the authority to make important decisions

in their work so that only few management processes

rely on top-down command and control.

Empowerment is shown by grouping employees into

teams (Wagner & Hollenbeck, 2010). Thus, a

learning organization is a necessity. Learning

organization is characterized by full employee

involvement in the learning process, which is carried

out collaboratively, aimed at collective change,

towards the formation of values or principles that are

shared by all members or between members (Watkins

& Marsick, 1992). The core principle of learning

organization is to place people as a whole in the

organization to continuously learn, transform, and

change towards shared values and principles among

members (Ivanko, 2013).

Learning organization is important, because every

organization needs to reorganize, restructure and

design management to achieve success, through a

learning process, not just for survival; Skilled

employees in the labor market become increasingly

scarce in the labor market because educational

institutions do not sufficiently provide the necessary

knowledge, so the organization itself needs to educate

its employees; knowledge increases; global

competition intensifies; the learning process is

needed to achieve breakthrough in responding to

technological advances; and learning processes are

needed by organizations to adapt to change.

(Marquardt, 2002). Learning in organizations

includes a learning process to improve performance

and business goals (performance base and business);

emphasize effective learning (learning how to learn);

a process of problem solving in the work

environment; an opportunity to develop knowledge,

skills, attitudes and behaviors; and part of the job.

Engaged employees are indicated by their

psychological involvement in work, connection to

their work, and commitment to complete the job

(Dessler, 2020). While Macey et al. (2009) stated that

engagement is the feeling of a person who has a sense

of purpose and focused energy, shows strong

initiative, adaptability, effort, and persistence towards

organizational goals; an engaged employee will

release psychic energy and behavioral energy.

Unfortunately, we observe that the literature

related to learning organization and innovative work

behavior in manufacturing companies is still limited,

especially those related to the relationship between

learning organization, employee engagement, and

innovative work behavior. Mura, et al. (2012)

suggested for the study of innovative work behavior

to consider all important variables that influence it

from individual, group, and organizational aspects.

Considering the importance of innovation produced

by employees who use their knowledge at work,

research that uncovers innovative work behavior

among employees in manufacturing companies

becomes important to study. This research has three

main objectives which in the future will contribute to

the literature on Human Resource Management and

Organizational Behavior in the context of

organizational development. First, to analyze the

influence of learning organization and employee

engagement which are thought to be the main factors

that will determine the realization of innovative work

behavior among employees. Second, the influence of

learning organization in shaping employee

engagement. Lastly, to look at the role of employee

engagement in strengthening the influence of learning

organizations on innovative work behavior.

This research paper follows the following

structure; a literature review related to learning

organization, employee engagement, and innovative

work behavior as the basis for formulating

hypotheses; methodology section describing in detail

how this research is organized; results section

describing the findings, discussions, and implications

both theoretically and practically; conclusions and

limitations and suggestions for further research.

2 LITERATURE REVIEW

2.1 Learning Organization and

Innovative Work Behavior

Innovative work behavior is based on knowledge, in

this case it can be developed through the involvement

of all work units in the learning process and being

able to manage the knowledge produced by the

organization, so that it can be seen that learning

Innovative Work Behavior Shaped by Learning Organization and Employee Engagement as Mediating Variable: A Case Study on

Manufacturing Corporation

133

organizations provide wider opportunities in shaping

their employees to behave innovatively. Learning

organizations have a direction of continuous learning

so the learning process is designed in a work

environment. Employees can learn while working,

help each other in learning, provide opportunities to

learn and respect employees who are willing to learn,

so the overall learning organization will encourage

and reward employees for innovative behavior.

Innovative work behavior begins with the

formation of a positive role of energy and pleasure

that encourages innovative behavior in an

environment that values learning (Park et al., 2014).

This is confirmed by Song et al. (2018) that learning

in an organization will lead to results in the form of

changes in the organization, namely increasing

organizational capabilities in terms of performance,

knowledge acquisition, and behavior. Learning

organization is thought to be able to increase its

capabilities in shaping innovative work behavior.

Empirically, it has been proven that learning

organization has a positive effect on

innovation/innovative work behavior (Hussein et al.,

2016; Ugurluoglu et al., 2013; Nadeem et al., 2018).

Learning is a fairly strong predictor of innovative

work behavior (Molodchik et al., 2016). Hence, we

can hypothesize that.

H1. Learning organization has a positive effect on

innovative work behavior.

2.2 Employee Engagement and

Innovative Work Behavior

Employees who are engaged with their work will

work with pleasure, which increases the emotional

connection with their work, with their colleagues, and

with their organization. They will actively engage in

their role to perform well by presenting their self both

physically, cognitively, and emotionally during work

(Kahn, 1990). Employee engagement will ultimately

provide tangible performance outcomes, namely

increased productivity; and intangible assets

including brand equity, customer satisfaction and

loyalty, innovation, and lower risk. In the end, the

visible work results and invisible assets are intended

to provide added value for shareholders (Macey et al.,

2009). Employee engagement forms individual

outcomes (attitudes, job satisfaction, commitment,

and retention) which will result in performance in the

form of in-role and extra-role behavior, forming team

performance, team innovation, organizational

performance, financial returns and others. Overall

they form the competitive advantage of the

organization (Albrecht et al., 2015).

A conducive working atmosphere created by the

organization will make employees work with a sense

of pleasure and their self fully involved in the work in

the innovation process; employees will utilize their

potential and that of the organization to provide the

best results (Nadeem et al., 2018). Job design directs

the occurrence of innovative work behavior and

engagement plays an important role as a buffer from

the pressure experienced by employees in shaping

innovative behavior (De Spiegelaere et al., 2015).

Empirical results prove that work engagement has

a positive effect on innovative work behavior

(Hosseini & Shirazi, 2021 and Park et al., 2014). A

number of other studies have also proven the positive

influence of employee engagement on innovative

work behavior (De Spiegelaere et al., 2012, 2015;

Nadeem et al., 2018; Contreras et al., 2020;

Karkoulian et al., 2020). Hence, we can hypothesize

that

H2. Employee engagement has a positive effect

on innovative work behavior.

2.3 Learning Organization and

Employee Engagement

A learning organization is a place where people

continuously develop their capacity to create the

results they really want, new and widespread thinking

patterns are fostered, everyone is free to have

aspirations, and people learn to learn together

continuously. Learning organization is characterized

by full employee involvement in the learning process,

which is carried out collaboratively and directed

towards collective change. The core principle of a

learning organization is to place people as a whole in

the organization to continuously learn, transform, and

change. In this case, a learning organization creates

an atmosphere for the formation of an engaging

situation, where individual employees are willing to

spend their energy and time to think and work outside

of their routine to be able to perform well.

Organizations need to consider that the

components of a learning organization can be aligned

with the formation of employee engagement, which

is aimed at supporting the formation of innovative

work behavior (Park et al., 2014). Employee

engagement is a situation that is created because

employees and their organization are attached to each

other by a learning process within their organization

to make continuous improvements and take action to

develop themselves. So, the success of a company as

a learning organization will contribute to the

formation of employee engagement (Bedarkar &

Pandita, 2014).

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134

Empirical results have proven the positive

influence of learning organization on engagement

(Song et al., 2018, Hosseini & Shirazi, 2021, Nadeem

et al. 2018; and Park et al., 2014). Hence, we can

hypothesize that .

H3. Learning organization has a positive effect on

employee engagement.

2.4 Employee Engagement as a

Mediator between Learning

Organization and Innovative Work

Behavior

The role of employee engagement as a mediator

between learning organization and innovative work

behavior is explained as follows: first, the effect of

learning organization on innovative work behavior

has been investigated by Park et al. (2014); Song et

al. (2018); Hussein et al. (2016); Ugurluoglu et al.

(2013); Nadeem et al.(2018); and Molodchik (2016);

second, the effect of employee engagement on

innovative work behavior has been proven by

Albrecht (2015); Nadeem et al. (2018); De

Spiegelaere et al. (2015); De Spiegelaere et al. (2012)

Hosseini & Shirazi (2021); Park et al. (2014); Lin &

Lee (2017); and Contreras et al. (2020); third, the

research of Song et al. (2018) and Hosseini and

Shirazi (2021) have proven that there is a direct

positive effect of learning organization on work

engagement; lastly, employee/work engagement has

been proven to play a role as a mediator between

learning organization and innovative work behavior

(Nadeem et al., 2018; Park et al., 2014; Hosseini &

Shirazi, 2021).

Considering the three patterns of relationship

above, it can be presumed that the effect of learning

organization on innovative work behavior can work

through the formation of employee engagement. In

this case, it can be explained that the core principle of

a learning organization is to place people as a whole

in the organization to continuously learn, transform,

and change. In this case, a learning organization

creates an atmosphere for the formation of an

engaging situation, where individual employees are

willing to spend their energy and time to think and

work to be able to perform well more than merely

fulfilling their routine. Furthermore, employee

engagement will lead to special work behavior in the

form of trying to meet or exceed certain performance

standards, seeking the best work results through

themselves, producing something new for the

organization, either in the form of ideas, processes

(procedures/methods), and new products. Hence, we

can hypothesize that.

H4. The positive influence of learning

organization. on innovative work behavior is

mediated by employee engagement

3 METHODOLOGY

Sample and data collection

To achieve the research objectives, sample and

data were collected from 254 respondents that work

in automotive manufacturing companies in Indonesia

who utilize their knowledge as an asset at work.

Data were analyzed using a structural equation

model (SEM) as presented in Figure 1.

Figure 1: Proposed Research Model.

3.1 Measurement

Innovative work behavior is measured through four

dimensions/indicators such as “Generating new

ideas” which are formed based on Scott & Bruce

(1994), Janssen (2000), De Spiegelaere et al. (2012),

Prieto & Perez-Santana (2014), and M. Li et al.

(2017). Each response was recorded using a five-

point Likert scale with a range of 1 = never to 5 =

always.

Measuring the learning organization, we

compiled six dimensions/indicators such as

“Providing learning opportunities” which was formed

based on Senge (1990), Watkins & Marsick (1997),

and Moilanen (2005). A five-point Likert scale with

a range (1 = never to 5 = always) was used to record

respondents' answers.

Responses to employee engagement were

recorded using a five-point Likert scale (1 = never to

5 = always). Measurement was done through three

dimensions/indicators, such as “Putting one's mind

completely on work and organization” compiled by

Shuck et al. (2014, 2017) and Macey et al. (2009).

Validity and reliability. To ensure validity, we

calculate the loading factor using confirmatory factor

analysis (CFA), all indicators indicate validity, for

example: loading factor “Realizing new ideas”

(0.958); loading factor “Utilizing the learning

system” (0.821); loading factor “Put thought

completely on work and organization” (0.962). We

Innovative Work Behavior Shaped by Learning Organization and Employee Engagement as Mediating Variable: A Case Study on

Manufacturing Corporation

135

then calculated reliability using composite reliability

(CR) as can be seen in Table 1.

Fit models. To determine the validity of the

proposed model, we calculated the statistical model

fit using a confirmatory factor analysis model based

on structural equation modeling. For the fit model, the

measurement results of the full model shows Chi-

square 174.743 with p-value 0.052 > 0.05; Root Mean

Square Error of Approximation (RMSEA) 0.028 <

0.08; Goodness of Fit Index (GFI) 0.934 > 0.90; and

Tucker Lewis Index (TLI) 0.992 > 0.090. Based on

the criteria, the model shows a good fit (Hair Jr. et al.,

2019).

4 RESULT

4.1 Descriptive Statistics

The mean, standard deviation, and correlation

coefficients have been calculated for the variables in

this study and are presented in Table 1. The

correlation coefficient shows that there is a positive

and significant relationship between the variables of

learning organization, employee engagement, and

innovative work behavior.

Table 1: Descriptive Statistics.

Variables mean

Standard

Deviation

Correlation

IWB LO

Innovative

work

behavior

(

IWB

)

3,654 0.699

Learning

Organization

(

)

3,647 0.680 0.455*

Employee

engagement

(EE)

3,642 0.679 0.765* 0.481*

Source: Primary data and author's calculations;

*significance level < 0.05

The results of hypothesis testing (Table 2) show

that learning organization has a direct effect on

innovative work behavior (p IWB, LO = 0.112; cr =

2.190; p-value = 0.029) with innovative work

behavior (H1); employee engagement (p IWB,EE =

0.635; cr = 9.967; p-value = 0.000) is found to have a

positive effect on innovative work behavior (H2);

There is a direct positive and significant effect

between learning organization (p EE, LO = 0.355; cr

= 6.007; p-value = 0.000) and employee engagement

(H3).

Next, we examine the mediation of employee

engagement on the relationship between learning

organization and innovative work behavior by first

ensuring that the requirements as recommended by

Hair Jr. et al. (2019) are met. First, the individual

relationship is statistically significant, namely (a) the

relationship between exogenous and endogenous

variables is significant; (b) the relationship between

exogenous variables and mediators is significant; (c)

the relationship between mediators and endogenous

variables is significant; and second, (a) estimate the

initial model which is only a direct relationship

between exogenous and endogenous variables and (b)

estimate the second model that includes mediating

variables; determine whether they mediate partially,

fully, or do not mediate the relationship between

exogenous and endogenous variables. Through the

bootstrapping method using AMOS, the indirect

correlation coefficient between learning organization

and innovative work behavior through employee

engagement is obtained as 0.226 with p-value = 0.009

(H4).

Overall, the results of the study show a significant

positive direct relationship between learning

organization and employee engagement with

innovative work behavior; there is a direct positive

effect between learning organization and employee

engagement; employee engagement partially

mediates the relationship between learning

organization and innovative work behavior.

Table 2: Hypothesis test results.

5 DISCUSSION

Innovation is the most important factor for

organizations to maintain the companies' existence in

the long term (Wagner & Hollenbeck, 2010).

Organizations that are able to continuously improve

their learning capacity, carry out transformations,

involve all work units in the learning process, and are

able to manage knowledge created by internal

organizations can accelerate the realization of

employees’ innovative work behaviors. Employees

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who are engaged with their work and organization,

armed with knowledge based on a desire beyond what

is formally required to, will voluntarily provide useful

outcomes in the form of ideas, processes

(procedures/methods) and new products to their work

posts, work units, and organizations.

To confirm, research on the effect of learning

organization and employee engagement on

innovative work behavior needs to be explored and

discussed. Likewise, the mediating effect of

employee engagement on innovative work behavior

needs to be investigated. To achieve the research

objectives, data were collected from a number of

respondents who work in automotive manufacturing

companies in Indonesia. Four hypotheses were

conceptualized based on the literature review, the first

aimed at examining the direct effect of learning

organization on innovative work behavior, the second

the effect of employee engagement on innovative

work behavior, the third the effect of learning

organization on employee engagement, and lastly the

indirect effect of learning organization on innovative

work behavior with employee engagement as a

mediator. The study found that the four hypotheses

were proven and accepted.

We found that learning organization has a direct

positive effect on innovative work behavior which

strengthens the results of previous research by Park et

al. (2014); Song et al. (2018); Hussein et al., (2016);

Ugurluoglu et al., (2013); Nadeem et al.,(2018); and

Molodchick et al. (2016). The application of learning

organization in the PDCA learning cycle in the

company, found (1) Plan: translate strategy into

operational terms; (2) Do: motivate and engage

people for doing operational plans; (3) Check: test

products for compliance with specifications and

precision (test validity); (4) Action: learn things that

are the source of problems and corrective actions that

have been taken, as well as adoption, use unexpected

situations to further strengthen the next preventive or

corrective actions against methods or ways of

working previously done (learn the lesson, adopt and

perpetuate or correct methods). Innovative work

behavior is formed when the work team tries to

produce a product that passes the test based on the

fulfillment of specifications and precision (check)

and the work team is faced with the source of the

problem and corrective action that needs to be taken

against the method or way of working that was

previously done (action).

The positive direct effect of employee

engagement on innovative work behavior is in line

with the findings of Hosseini & Shirazi (2021); Park

et al., (2014); De Spiegelaere et al., (2012, 2015);

Nadeem et al., (2018); Contreras et al., (2020); and

Karkoulian et al., (2020). De Spiegelaere et al. (2015)

stated that job design that directs innovative work

behavior generally creates pressure in the form of

autonomy and time pressure, at that point engagement

plays an important role as a buffer or antidote to the

pressure experienced by employees in shaping

innovative work behavior. There are three things that

become the sources of the formation of employee

engagement, namely self-awareness to strive for the

results of individual work and/or team work need to

be better than the previous results; the results of

individual/team work will determine the company's

performance and their career sustainability; and the

willingness to rise to the occasion when needed to

achieve work goals and deadlines. Those sources then

make employees generate new ideas and actualize

more effective work practices independently, based

on the ideas that have been realized. In the field,

employee engagement is one of the principles for

companies in implementing ISO 9001:2015

Certification: Quality Management System. The

implementation of quality management directs each

employee to generate new ideas to meet customer

expectations for the products and/or services

provided by the company.

The positive direct effect of learning organization

on employee engagement is proven and in line with

studies by Park et al., (2014); (2014); Song et al.,

(2018); Hosseini & Shirazi (2021); and Nadeem et al.

(2018). Employee engagement is a situation that is

created, when employees and their organization are

bonded to each other by a learning process within

their organization to make continuous improvement

and act to develop themselves. Thus in this case the

success of a company as a learning organization will

contribute to the formation of employee engagement

(Bedarkar & Pandita, 2014). Observations in the field

shows that the PDCA learning cycle applied in the

company is a form of learning organization in the

company. One of the stages in PDCA mentions the

importance of motivating employees and building

employee engagement in implementing operational

plans (motivate and engage people for doing

operational plan).

Partially, employee engagement is proven to

mediate the relationship between learning

organization and innovative work behavior as found

from the research of Nadeem et al. (2018); Park et al.,

(2014); and Hosseini & Shirazi (2021). The core

principle of a learning organization is to place people

as a whole in the organization to continually learn,

transform, and change. Learning organization creates

an atmosphere for the formation of an engaging

Innovative Work Behavior Shaped by Learning Organization and Employee Engagement as Mediating Variable: A Case Study on

Manufacturing Corporation

137

situation, where individual employees are willing to

spend their energy and time to think and work to be

able to perform well more than just fulfilling their

routines. Furthermore, employee engagement will

bring out special work behavior in the form of striving

to meet or exceed certain performance standards,

produce the best work results, and produce something

new for the organization, either in the form of ideas,

processes, or products. Employee engagement in the

context of the implementation of quality management

directs each employee to generate new ideas by

maximizing the learning organization in meeting

customer expectations for the products and/or

services provided by the company.

5.1 Theoretical Implications

This research contributes to the growing literature on

Human Resource Management and Organizational

Behavior, especially related to learning organization,

employee engagement, and innovative work

behavior. The theoretical implications of the results

of this study are fourfold. First, employee

engagement has a strong influence in shaping

innovative work behavior. Second, learning

organization has an influence in shaping employee

engagement. Third, employee engagement partially

mediates the relationship between organizational

learning and innovative work behavior. Finally, given

the limited novelty references to the learning

organization variable associated with innovative

work behavior in the manufacturing sector, it is

therefore important to conduct further research.

5.2 Practical Implications

This study underscores that in order to realize

employee’s innovative work behavior, a strong

learning organization and employee engagement that

is inherent in employees’ self are needed. Innovative

work behavior is well reflected by the indicator

“Actualizing the results of ideas into

practices/processes/products”. Providing support for

employees to actualize designs/concepts/products

according to customer needs, effective work

practices, creation of designs/concepts, application of

ideas in work units/teams, and corporate strategy

concepts to build competitiveness are crucial thing

that can be done by management to realize innovative

work behavior.

The indicator “Utilizing learning outcomes” is the

best reflection for the learning organization variable.

Leaders and HR managers can play a role in

increasing the utilization of these learning outcomes

by continuously supporting employees who are

challenged to face risks in realizing ideas,

recognizing and appreciating employees who take

initiative, and authorizing employees to manage the

resources needed in their work so that they have an

impact on effectiveness and efficiency.

The biggest contribution of the indicator

"Attachment to the good feeling in the organization"

on the employee engagement variable can be used as

a reference for management to make employees more

engaged with their work. Providing certainty to

employees that there are equal opportunities in career

paths and training & development and maintaining

work effectiveness and efficiency that have an impact

on company sustainability are essential things that

management should maintain.

5.3 Limitations and Future Research

Some of the limitations of this research need to be

discussed and can be used as the basis of future

research. First, this research is limited to automotive

manufacturing companies so that different results can

occur if applied to other manufacturing sub-sectors,

non-manufacturing sectors, trading & service

companies, even in the government organizations and

NGOs. Second, each organization has its own pace in

becoming a learning organization, so it is necessary

to further investigate how the learning organizations

of domestic companies (PMDN) and PMA

companies realize the innovative work behavior of

their employees.

6 CONLUSION

The existence and sustainability of a company is

determined by its ability to create innovations that

originate from the ideas of its employees. Therefore,

company leaders need to create a conducive

atmosphere for their employees to realize innovative

work behavior so that they will be able to give birth

to innovation.

It is confirmed in this study that learning

organization and employee engagement have a direct

positive effect on the innovative work behavior of

employees of manufacturing companies in Indonesia.

Learning organization also has a direct positive effect

on employee engagement. Employee engagement

partially mediates the relationship between learning

organization and innovative work behavior.

Interestingly, employee engagement has a greater

direct role than learning organization in increasing

innovative work behavior, its role is even more

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evident when mediating the relationship between

learning organization and innovative work behavior.

Management therefore needs to treat employee

engagement as well as possible in building innovative

work behavior in the workplace.

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