Jurnal Aplikasi Manajemen dan Bisnis, Vol. 9 No.

2, Mei 2023 Available online

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EFFECT OF FLEXIBLE WORKING ARRANGEMENT ON EMPLOYEE

PERFORMANCE: MEDIATING ROLE OF WORK ENGAGEMENT AND SUPERVISOR
SUPPORT IN INDONESIA DIGITAL STARTUP

Hana Angelia Pradipta*)1, Fanny Martdianty*)

*)
Department of Management, Faculty of Economics and Business, University of Indonesia
Jl. Salemba Raya No.4, RW.5, Jakarta 10430, Indonesia

Abstract: To cope with unprecedented change, remote work provides organizations

with an option for a flexible work arrangement (FWA) environment to maintain
performance during turbulent situations; recent research has reported that the practice
has gained popularity among employees. It is essential to deepen our knowledge about
the performance of employees in the context of FWA because the results of previous
studies need to be more consistent. This study examines the mediating role of work
Riwayat artikel:
engagement and supervisor support on the relationship between FWA and team member
Diterima
performance. The data were collected from 316 employees working in digital startup
9 December 2022
companies in Indonesia. The research is analyzed using structural equation modeling
(SEM). The results show that work engagement and supervisor support as mediating
Revisi
roles affect the relationship between FWA and employee performance. The results found
19 January 2023
work engagement as a mediating relationship between supervisor support and employee
performance. Supervisory support in the form of support for employees makes them feel
Disetujui
more valued, and it affects job performance. High work involvement improves employee
13 March 2023
performance while practicing flexible work arrangements.
Tersedia online
Keywords: employee performance, digital startup, flexible, supervisor support, work
31 May 2023
arrangement, work engagement

Abstrak: Perusahaan perlu kemampuan adaptasi dalam memberikan lingkungan kerja

This is an open access
yang fleksibel yang memiliki dampak langsung dan/atau tidak langsung pada kinerja
article under the CC BY
pekerjaan. Flexible work arrangement (FWA) saat ini sudah menjadi tren di banyak
license (https://
perusahaan. Penelitian ini bertujuan untuk menganalisis FWA terhadap employee
creativecommons.org/
performance dengan supervisor support dan work engagement sebagai mediasi. Jenis
licenses/by/4.0/)
penelitian yang digunakan adalah kuantitatif dengan pengambilan data melalui metode
survei. Jumlah responden terkumpul sebanyak 316 karyawan yang bekerja perusahaan
startup digital di Indonesia. Data diolah menggunakan metode analisis Structural
Equation Model (SEM). Hasil penelitian menunjukkan melalui mediasi work engagement
dan supervisor support berpengaruh pada hubungan FWA terhadap employee
performance. Hasil penelitian menunjukkan work engagement sebagai mediasi hubungan
antara supervisor support dan employee performance. Supervisor support dalam bentuk
dukungan bantuan pada karyawan membuat mereka merasa lebih dihargai sehingga
memengaruhi kinerja pekerjaan dan keterlibatan kerja yang tinggi meningkatkan kinerja
karyawan saat menggunakan pengaturan kerja fleksibel.

Kata kunci: digital startup, employee performance, flexible supervisor support, work
arrangement, work engagement

1
Corresponding author:
Email: [email protected]

512 Copyright © 2023, ISSN: 2528-5149/EISSN: 2460-7819

P-ISSN: 2407-5434 E-ISSN: 2407-7321 Jurnal Aplikasi Bisnis dan Manajemen (JABM),
Vol. 9 No. 2, Mei 2023
Accredited by Ministry of RTHE Number 32a/E/KPT/2017

INTRODUCTION Several studies have found that telework increases

productivity because it makes it possible to work
The development in information and communication away from the office, thereby avoiding distractions
technology, the widespread adoption of the internet, from co-workers (Thulin et al. 2019), increasing
and changes in work design have made it possible for concentration (Campo et al. 2021), thereby increasing
workers to perform outside of the traditional physical job performance and the possibility to divide time
work location (Abendroth & Reimann, 2018). Some between responsibilities at home and work are more
finance and technology companies have introduced productive and satisfying. Working conditions were an
a work-from-home (WFH) culture (Chatterjee et al. important component of job satisfaction and employee
2022). Along with technological developments and performance (Mishra et al. 2020). Mishra et al. (2020)
changing market conditions, black swan events such draw on the situational context (eg, support from
as the COVID-19 pandemic require organizations superiors) as a cause of satisfaction and argues that high-
to be more efficient. The provision of flexible work performing work practices, and thus a positive work
arrangements (FWA) amid COVID-19 has forced climate, promote employee satisfaction. Employees
organizations to switch to remote availability or also need support and understanding (empathy) in all
provide flexible work schedules (Chatterjee et al. aspects of life, even at work (Muttaqin et al. 2020).
2022). The Accenture Report (2021) has shown that Interpersonal relationships are critical to organizational
after the COVID-19 pandemic, 77% of executives functioning and effectiveness (Choi, 2020).
predict that the remote work trend will continue. In
response to these trends and needs, many employers try Previous Eisenberger et al. (2002) research has shown
giving employees more freedom and flexibility without the importance of the interpersonal relationship
compromising the organization’s interests (Conradie between employees and their supervisors. Similarly,
& de Klerk, 2019). Especially employees increasingly Nahum-Shaniet al. (2014) suggest the relationship as a
can complete work without being physically present in valuable source of guidance, assistance, and feedback
the office and doing work from anywhere and anytime. to subordinates when they complete tasks in their
workplace. Supervisor behavior has been recognized
In this study, the term work from home, telework, and as a key factor to improve employee performance
flexible work arrangements are referred to as working (De Carlo et al. 2020). Based on the social exchange
outside of a conventional workplace or in a location theory, research has found that line manager behavior
far from their office or facilities where workers can positively impacts individual performance (Giauque
communicate with other members and organizations et al. 2022).  Ng (2017) found that supervisors can
using new technologies, rather than having a physical encourage employees to improve their performance by
interaction with others (Bontrager et al. 2021). Despite increasing their enthusiasm, competence, absorption,
the devastating impact of the pandemic, digital start- and dedication to work. Therefore, this approach
ups are growing faster than ever, driven by increased suggests that the relationship between positive
consumer demand. Currently, the trend of Indonesian supervisory behavior and employee performance
startups is to implement a remote or remote work can be mediated by positive work feelings, such as
system. According to the Indonesian Creative Digital fulfilling one’s needs or work engagement (Schaufeli
Association (Aditif) (Fauzan, 2020), startups are the et al. 2006). In the same findings, Heyns et al. (2021)
type of company that is most ready to implement a prove that job resources, including supervisor support,
remote work system because, naturally, most work can are positively related to engagement.
be done remotely. Moreover, the remote and flexible
working system can help companies save operational This study set out to improve our understanding
cost. As a result, how people work has changed since the of the use of FWA and its results within the country
high use of FWA in various fields. Based on employee and cultural contexts to help organizations have a
reviews through the Glassdoor and Jobstreet platforms, valid basis for considering the application of FWA
many said that the company that implemented WFH (Conradie & de Klerk, 2019). Existing research has
was one of the factors that determined their satisfaction found empirical evidence regarding the impact of
at work (RevoU, 2021). implementing flexible work arrangements on employee
performance has arguments for both negative and
positive directions. The negative impact of FWA on

Indonesian Journal of Business and Entrepreneurship, Vol. 3 No. 2, May 2017 513
P-ISSN: 2407-5434 E-ISSN: 2407-7321 Jurnal Aplikasi Bisnis dan Manajemen (JABM),
Vol. 9 No. 2, Mei 2023
Accredited by Ministry of RTHE Number 32a/E/KPT/2017

employee performance according to a Deloitte survey contract employees, 86% have positions at the staff
shows that 46% of employees experience a decrease in level, while the other 14% are in managerial positions.
performance due to FWA (Chi et al. 2021). Increased
stress, inadequate infrastructure, difficult work/co-work Research measurement tools on the FWA, EP, WE,
environment, unrealistic performance expectations, and SS scales are used to capture the responses of
disrupted manager-employee relationships, and the respondents. Responds were measured with a
difficulty building trust with co-workers are negative Likert type scale, ranging from 1 (Strongly Disagree)
sides of a virtual work environment (Narayanamurthy to 7 (Strongly Agree). Kossek and Lautsch (2018)
& Tortorella, 2021), which can have a negative impact defined flexible work arrangement as work scheduling
on employee performance. designed to give employees greater control over
work/life whenever, wherever, for how long, and
On the other hand, remote work increases flexibility how work can be done. The FWA measurement uses
(Hensher et al. 2022), remote work increases a 4-item scale from Crowley and Kolenikov (2014).
productivity as travel time and distractions from co- The questionnaire asked respondents’ control over
workers are reduced allowing them to achieve good four measures: scheduling working hours, schedule
levels of job performance and improves concentration predictions, number of hours worked and where one
(Campo et al. 2021), thereby improving job performance works. According to Mishra et al. (2020), EP is the way
amidst technological advancement. Several studies employees behave at work and how well they carry
have revealed the relationship between remote work out the tasks assigned to them. The measurement scale
and job performance, but have produced contradictory consists of 12 items with the dimensions of task output,
findings (Campo et al. 2021). However, such studies interpersonal relationships, and dedication developed
on FWA whether it has a positive or negative effect on by Hochwarter et al. (2004).
employee performance (EP) by mediating supervisor
support (SS) and work engagement (WE) are limited. Furthermore, Eisenberger et al. (2002) defined
Thus far, this study wanted to examine and review supervisor support as the extent to which supervisors
literature from the results gaps found in previous care about work and employee well-being. Positive
studies. This research was conducted to analyze and outcomes of supervisor support have been supported
discuss the effect of FWA to improve EP in the digital in the literature and include greater job satisfaction
startup employee with the use of the mediating role of and commitment, better relationships with co-workers,
supervisor support and work engagement. willingness to take on additional responsibilities, and
lower work-family conflict (Rhoades & Eisenberger,
2002). The SS variable is measured using the
METHODS Eisenberger et al. (2002) scale with 8 items regarding
the form of superior support. Work engagement as a
The number of participants consisted of 332 who work-related state is positively associated with other
accessed the survey through a link that was posted on beneficial outcomes, such as increased organizational
social media sites. The purposive sampling method commitment, employee well-being, and reduced
was applied to collect primary data and the electronic stress (Bakker & Schaufeli, 2008). Utrecht Work
survey tool Google Forms was used. Sample selection Engagement Scale (UWES) (Schaufeli et al. 2006) are
by random approach with three main selection criteria. grouped into three subscales that reflect the dimensions
First, respondents should be working in a digital startup of engagement: vigor, dedication, and absorption.
companies in Indonesia and have at least 1 year tenure
working at its company. All respondents should perform The research model that is hypothesized between
flexible working arrangement (i.e work from home, variables is tested through Structural Equation
remote working or work from anywhere) in the last 12 Modeling (SEM). SEM data analysis technique was
months or up until now. Further, respondents have to use used to determine the effect of FWA on EP with WE
flexible working arrangement minimum once in a week. and SS as mediating variables. All analyses were
Data collection was carried out from August to October carried out using LISREL 8.8 software to perform
2022. From the 316 participants, 60% of them were measurement model measurements and structural
women, 40% were men. Respondents’ employment models. To evaluate the model, Goodness of Fit (GoF)
status consists of 63% permanent employees, 37% were used to determine the fit of the model through the

514 Indonesian Journal of Business and Entrepreneurship, Vol. 3 No. 2, May 2017
P-ISSN: 2407-5434 E-ISSN: 2407-7321 Jurnal Aplikasi Bisnis dan Manajemen (JABM),
Vol. 9 No. 2, Mei 2023
Accredited by Ministry of RTHE Number 32a/E/KPT/2017

Root Mean Square Error of Approximation (RMSEA), between the mediating variable and the dependent
Comparative Fit Index (CFI), and Goodness of Fit variable. The path between the independent variable
Index (GFI). For a reasonable fit, must be supported and the dependent variable is represented by the “c”
by CFI and GFI indices greater than or equal to 0.9 and path to see the direct effect.
RMSEA smaller than 0.08 (Hair Jr et al. 2014).
The research model can be seen in Figure 1 shows
The validity of the SEM measurement model can be the effect of the relationship between flexible work
seen through finding evidence of construct validity. arrangement and employee performance with supervisor
Construct validity is the extent to which the value of a support and work engagement mediating variables. The
variable represents the latent theoretical construct you work engagement mediation variable can mediate the
want to measure. According to Hair Jr et al. (2014) a relationship between supervisor support and employee
construct is declared to achieve construct validity if it performance. This paper hypothesis attempts to show
meets recommended benchmark values of standardized the effect of FWA on EP with SS and WE mediation
factor loading (SFL). SFL score must meet ≥ 0.50. To for digital startup company workers in Indonesia as
assess convergence and discriminant validity within follows:
the proposed framework, average variance extracted
(AVE), composite reliability (CR) values and inter- H1: Flexible work arrangement positively affect
construct correlation scores were calculated. AVE and employee performance
CR values should be greater than or equal to 0.50 and H2: Flexible work arrangement positively affect
0.70, to establish convergent validity. supervisor support
H3: Flexible work arrangement positively affect work
This study examines how the use of FWA impacts engagement
EP through mediating variables (SS and WE). This H4:.. Supervisor support positively affect employee
study consequently leads to an assessment of the performance
total and direct effects of constructs using FWA on H5:. Supervisor support positively affect work
the dependent variable (EP) and indirect effects via engagement
mediators (SS and WE). To test mediation hypothesis, H6:.. Work engagement positively affect employee
the guidelines for conducting mediation analysis performance
suggested by Zhao et al. (2010). According to Zhao et H7: Flexible work arrangement positively affect
al. (2010), testing the indirect effects a × b provides the employee performance with the mediating role
researcher with information for testing the mediation, of supervisor support
the “a” is the path between the independent variable H8: Flexible work arrangement positively affect
and the mediating variable, and “b” represents the path employee performance with the mediating role
of work engagement

Work
engagement

Flexible work Employee

arrangement performance

Supervisor
support

Figure 1. Research model of the effect of flexible work arrangements on employee performance by mediating
supervisory support and work involvement

Indonesian Journal of Business and Entrepreneurship, Vol. 3 No. 2, May 2017 515
P-ISSN: 2407-5434 E-ISSN: 2407-7321 Jurnal Aplikasi Bisnis dan Manajemen (JABM),
Vol. 9 No. 2, Mei 2023
Accredited by Ministry of RTHE Number 32a/E/KPT/2017

H9:.. Supervisor support positively affect employee high level of confidence in the items used in testing
performance with the mediating role of work the research model. The results of construct reliability
engagement and validity were measured using confirmatory factor
analysis (CFA). CFA analysis on the model with
the four proposed variables obtained a good fit (Chi-
RESULTS square=230.07, degree of freedom=81, P=0.000,

In this study, respondents have different characteristics As the significance of the influence of variables
as can be seen in Table 1. The characteristics of the in accordance with the research hypothesis. The
respondents are workers who carry out FWA in digital benchmark for the significance of the relationship
startup companies with a company age of 1 to 10 years. between variables is shown by the t-value which is
To measure worker engagement with their workplace, equal to 1.645. The t-value is declared insignificant
respondents must also have worked at the company for if -1.645 ≤ t-value ≤ 1.645. As presented in Table 3,
at least 1 year. These characteristics are in accordance the direct effect of FWA and EP (t=1.44, λ=0.09) is
with the research focus to determine the effect of found not significantly correlated, thus Hypothesis
FWA on EP mediated by SS and WE variables. The 1 is rejected. The remaining results of the rest direct
respondent characteristics table can be seen in Table 1. impact between other variables show a significantly
correlated (t-value ≥ 1.645) that can conclude H2, H3,
The overall factor loading values (Table 2) were found H4, H5, and H6 are accepted.
to be valid with SFL ≥ 0.50 found in FWA items there
were indicators from FWA4 that were invalid and SS The results of the coefficient of determination (R2)
items from SS7 and SS8 indicators with SFL values test were found that the R2 value of SS was 0.16.
≤ 0.50. The indicators SS7 and SS8 are reverse-coded This explains that the FWA variable can explain the
items which are also found not to meet the standard SS variable by 16% and there are remaining variable
values which make these items are not included for variations explained by other variables not included in
the next analysis. The result presented in Table 2 this study. The R2 value of the WE variable is 0.33. This
indicates all items have a significant factor loading. explains that the SS and FWA variables can explain the
Regarding the discriminant validity, shows that the WE variable by 33%. In addition, the R2 value of EP is
indicator CR ≥ 0.70 and AVE ≥ 0.50 is fully met (Hair 0.53. This means that the variables SS, WE, and FWA
Jr et al, 2014). In sum, these results indicate that a can explain the EP variable by 53%.

Table 1. Respondents Characteristics

Item Category Frequency Percentage
Employement Status Contract Employee 117 37%
Permanent Employee 199 63%
Company’s Age 1 - 3 Years 76 24%
4 - 5 Years 119 38%
7 - 9 Years 84 26%
10 Years 37 12%
Years of Work 1 - 2 Years 248 78%
3 - 5 Years 59 19%
> 5 Years 8 3%
FWA Frequency 1 – 2 x/week 44 5%
1 x/week 17 14%
3 - 4 x/week 58 18%
Implementing full FWA 197 62%

516 Indonesian Journal of Business and Entrepreneurship, Vol. 3 No. 2, May 2017
P-ISSN: 2407-5434 E-ISSN: 2407-7321 Jurnal Aplikasi Bisnis dan Manajemen (JABM),
Vol. 9 No. 2, Mei 2023
Accredited by Ministry of RTHE Number 32a/E/KPT/2017

Table 2. Reliability and validity of the measurement model

CR AVE
Construct Item Loadings
(Composite Reliability) (Average Variance Extracted)
Flexible Work FWA1 0.88 0.85 0.65
Arrangement (FWA) FWA2 0.77
FWA3 0.76
Supervisor Support SS1 0.67 0.91 0.63
(SS) SS2 0.82
SS3 0.80
SS4 0.75
SS5 0.85
SS6 0.87
Work Engagement Vigor 0.90 0.97 0.91
(WE) Dedication 0.97
Employee Absorption 0.99
Performance (EP) Task Output 0.81 0.84 0.64
Interpersonal Relationships 0.80
Dedication 0.79

Table 3. Table of direct and indirect effect

Standardized Factor T-Value
Loading (SFL)
Direct Effect
Flexible Work Arrangement (FWA) → Employee Performance (EP) 0.09 1.44
Flexible Work Arrangement (FWA) → Supervisor Support (SS) 0.24 6.40
Flexible Work Arrangement (FWA) → Work Engagement (WE) 0.40 4.07
Supervisor Support (SS) → Employee Performance (EP) 2.69 2.69
Supervisor Support (SS) → Work Engagement (WE) 6.91 6.91
Work Engagement (WE) → Employee Performance (EP) 9.52 9.52
Indirect Effect
Flexible Work Arrangement (FWA) → Work Engagement (WE) → Employee 0.14
Performance (EP)
Flexible Work Arrangement (FWA) → Supervisor Support (SS) → Employee 0.07
Performance (EP)
Supervisor Support (SS) → Work Engagement (WE) → Employee Performance (EP) 0.26
Note: Model fit indices: RMSEA 0,079, CFI 0,98, GFI 0,91.

Findings from the indirect effect through the mediation Patwardhan (2021); Ipsen et al. 2021) which showed a
demonstrated significant results. Table 3 provides significant and positive effect of FWA on EP. The results
evidence that the indirect effect of using FWA on EP and showed that FWA have no significant effect on EP.
the mediation role (SS and WE). The data indicating Given the findings of this study, we can conclude that
SS (λ=0.07) and WE (λ=0.14) fully mediate the impact the use of flexible work or FWA does not automatically
of FWA and EP. Given the results, FWA will have an function as job resources as defined by (Bakker et al.
indirect effect on EP through SS and WE. Hypotheses 7 2012) in the job demands-resources (JD-R) framework
and 8 are supported. The results of other indirect effects which is generally assumed to produce positive job
indicate that WE (λ=0.26) partially mediated SS on EP outcomes. This study examines the relationship
which makes Hypothesis 9 accepted. between FWA and EP mediated by SS experienced by
workers in Indonesian digital startups (Figure 2). The
Hypothesis 1 was formulated to see the positive and same relationship has been reported in Yu et al. (2019)
significant effect on FWA with EP. The findings of this found direct supervisor support can improve results
study are in contrast to previous studies (Sekhar & while implementing FWA. De Menezes and Kelliher
Indonesian Journal of Business and Entrepreneurship, Vol. 3 No. 2, May 2017 517
P-ISSN: 2407-5434 E-ISSN: 2407-7321 Jurnal Aplikasi Bisnis dan Manajemen (JABM),
Vol. 9 No. 2, Mei 2023
Accredited by Ministry of RTHE Number 32a/E/KPT/2017

(2017) observed that FWA affects attitudes, health, to demonstrate good performance at work. This finding
employee performance, employee welfare, and job seems to be consistent with other research which
satisfaction or performance. showed FWA contributes to EP to increase engagement
and performance (De Menezes & Kelliher, 2017), and
These results are in agreement with Sekhar and work engagement as a mediator is positively associated
Pathwardan (2021) findings which showed the with performance (Kuswady & Hendarsjah, 2022).
relationship between FWA affecting EP mediated These results also provide support for hypotheses 3 and
by SS. FWA can help organizations to meet various 6 regarding the positive relationship of FWA on WE
needs in a dynamic environment through the employee and WE with EP.
management system that elicits desired employee
behavior such as increased performance. Supervisors Furthermore, hypothesis 9 proposes a significant
also act as agents of continuous transformation in positive relationship between SS and EP with the
shaping employee behavior, communicating with mediation role of WE. Supervisors provide adequate
employees, and developing an FWA culture while support regarding FWA, and engaging employees can
dealing with organizational change. Hypothesis 7 improve workplace performance. The support that a
supported the mediation role of SS between FWA and worker has from their superiors is potentially desired
EP. These results also provide support for hypotheses 2 to motivate employees to further improve their work
and 4 regarding the significant relationship of FWA on performance (Sekhar et al. 2018). These findings
SS and SS with EP. support evidence from earlier observations (Kossek
et al. 2006; Hochwarter et al. 2004). According to Ng
Next, hypothesis 8 can be accepted from the results (2017) who found employeee employee performance
indicating the use of FWA for employees has potential can contribute through improvement in moral support,
benefits and digital startup companies that implement competency development, and dedication to work.
higher engaged workers make employees feel cared Supervisors who lend a hand could make employees
for, valued, involved in the workplace, and show aware of how they can make a difference in their
good performance in their work (Bailey et al. 2015; environment if they think about what is needed; in
Conradie & de Klerk, 2019; Salanova & Schaufeli, this environment, employers can show employees how
2008). The result of this study found a significance to improve their well-being, work-life balance, and
for using FWA to enable employees to become more performance.
engaged and consequently provide more opportunities

Work
engagement

Flexible work Employee

arrangements performance

Supervisor
support

Figure 2. Structural Model Results

518 Indonesian Journal of Business and Entrepreneurship, Vol. 3 No. 2, May 2017
P-ISSN: 2407-5434 E-ISSN: 2407-7321 Jurnal Aplikasi Bisnis dan Manajemen (JABM),
Vol. 9 No. 2, Mei 2023
Accredited by Ministry of RTHE Number 32a/E/KPT/2017

In line with the arguments mentioned above, is also important for each employee to manage because
previous studies by De Carlo et al. (2020) argue that the employees themselves can be assisted in monitoring
supervisor support positively influences performance how much time and schedule to carry out tasks.
or performance indirectly through partial mediation of
work engagement. De Carlo et al. (2020) found that Therefore, employee engagement is shown by doing
supervisors’ integrity and ability to manage emotions work that allows workers to fully concentrate and
were found to be very important for increasing work enjoy completing their tasks. In order to improve
engagement, thus leading to increased employee work engagement to achieve excellent work results,
performance. Comparison of the findings with those of employers can provide tasks that align with the fields and
other studies on startup employees (Prasetyaningtyas abilities of workers and have added value to how they
et al. 2021) that giving employees the opportunity to contribute to the company’s mission and strategic goals.
voice their opinions, and encouraging them to discuss The choice to do various tasks and use various skills
solutions to existing problems with their supervisor can lead to less than optimal work results. Employers
was found to help the employee to finish their tasks can provide training to develop appropriate skills and
accurately. Hypothesis 9 supported the mediation role abilities for workers to carry out their duties. This can
of WE between SS and EP. These results also provide help workers to find solutions when they encounter
support for hypotheses 4 and 5 regarding the positive problems in their work. Employees themselves must
relationship of FWA on SS and SS with EP. also take part in employee engagement activities held
by the company. By actively participating in activities
The study has identified the mediating role of supervisor or facilities carried out by the company, it helps
support, and work engagement helps explain the employees to feel connected to the work environment
increase in employee performance for workers who even though they are separated by distance.
do flexible work arrangements. The obvious finding to
emerge from this study shows that the indirect effect The findings of this research provide insights into
results show that there is a more significant influence on supervisory support contributions to employee
flexible work arrangements with employee performance performance through two-way communication from
if it is mediated through work engagement compared superiors and members regarding opinions or input
to supervisor support. Startup employees who work regarding work. The discussion would also include
flexibly get positive effects from job resources, such as managers’ role in providing assistance regarding
autonomy, and social support from colleagues, have a work constraints. Ensuring that their supervisors are
sense of enthusiasm and an effective relationship with always open for virtual communication with their team
work, are more competent and effective in improving members. Good communication between employees
performance. In addition, Figure 2 shows that work and supervisors can be a place for employees to ask
engagement can be a mediating role in the relationship questions, express opinions, or complain. Supervisors
between supervisor support and the improvement of can be trusted by their team members for listening and
employee performance. Therefore, work engagement providing actionable input when they face difficulties.
is an important link explaining the relationship between
flexible work arrangements, supervisor support, and
employee performance. CONCLUSIONS AND RECOMMENDATIONS

Managerial Implications Conclusions

The findings of this study suggest management to pay The following conclusions can be drawn from the present
attention on the level of time flexibility. Establish a study among workers of digital startup companies
precise working hour by creating a framework for when in Indonesia. This study has found a mediating role
they can communicate and interact with each other. of supervisor support is proven to help explain the
Make sure team members understand that workers are increase in employee performance in workers who
not expected to be on standby all the time, including use flexible working arrangements. Just as well, work
during non-agreed working hours. Each individual engagement is found to mediate employee performance.
should have an understanding of the different working Work engagement is also a mediating variable for
hours between employees. Working time management supervisor support relationships to improve employee

Indonesian Journal of Business and Entrepreneurship, Vol. 3 No. 2, May 2017 519
P-ISSN: 2407-5434 E-ISSN: 2407-7321 Jurnal Aplikasi Bisnis dan Manajemen (JABM),
Vol. 9 No. 2, Mei 2023
Accredited by Ministry of RTHE Number 32a/E/KPT/2017

performance in digital startup employees in Indonesia. as well as to personnel requirements, has escalated the
The results of the study prove the importance of work necessity to identify those factors that affect employee
engagement and supervisor support as the mediating performance (EP.
role to increase the relationship between flexible work
arrangements and employee performance in workers at
digital startup companies in Indonesia. REFERENCES

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