Self-Concept and Akhlak Culture as Predictors of Work Engagement in Indonesian State-Owned Enterprises

Abstract

Employee engagement has emerged as a critical factor in enhancing organizational performance within Indonesian State-Owned Enterprises (SOEs). Since the implementation of the Akhlak values in 2020, representing Amanah, Kompeten, Harmonis, Loyal, Adaptif, and Kolaboratif, the government has emphasized cultural transformation as a foundation for ethical and performance excellence. However, the extent to which these values are internalized and reflected in employees’ engagement remains unclear, particularly in relation to individual psychological factors such as self-concept. Therefore, this study aims to analyze how self-concept influences work engagement among employees in Indonesian SOEs and to examine whether Akhlak culture functions as a mediating variable in this relationship. Employing a quantitative explanatory design, data were collected through an online survey involving 150 SOE employees in Makassar and analyzed using Partial Least Squares Structural Equation Modeling (SmartPLS 4). The results show that self-concept positively affects both Akhlak culture (β = 0.72, p < 0.001) and work engagement (β = 0.31, p < 0.01), while Akhlak culture has a significant positive effect on work engagement (β = 0.48, p < 0.001) and partially mediates the self-concept–engagement relationship. The model explains 63% of the variance in work engagement, indicating substantial explanatory power. These findings confirm that employees’ self-belief and internalization of organizational values jointly enhance engagement and performance. Theoretically, this research extends the Job Demands–Resources (JD-R) framework by integrating cultural mediation, while practically, it provides insights for SOE leaders to design values-based strategies that align personal and organizational identity to foster sustainable engagement