Abstract

In today’s rapidly evolving technological landscape, the quality of employee skills and job commitment—reflected through employee retention—has become increasingly vital. This study investigates the effects of corporate governance (CG), internal control (IC), and corporate reputation (CR) on employee engagement (EE), with a focus on the moderating role of democratic leadership style. Data were obtained from 606 respondents across 276 logistics companies affiliated with the Indonesian Logistics and Forwarders Association (ILFA), using a structured questionnaire distributed via Google Forms. The analysis was conducted using Partial Least Squares–Structural Equation Modeling (PLS–SEM) with the SmartPLS 4.0.7.8 software. The findings reveal that corporate governance, internal control, and corporate reputation each have a significant positive influence on employee engagement. However, the study also indicates that the democratic leadership style does not enhance the influence of these three factors on employee engagement. These results suggest that while effective governance, controls, and reputation are crucial for engaging employees, a democratic leadership style may not always serve as the most effective moderating mechanism in the context of the Indonesian logistics and forwarding industry. Leaders are therefore encouraged to explore alternative leadership approaches better aligned with their organizational culture and employee expectations.