Enhancing Sustainable Palm Oil Production Through Employee Productivity and Digital Workforce Management
DOI:
https://doi.org/10.53905/Veritas.v1i01.4Keywords:
sustainable palm oil, digital workforce management, employee productivity, structural equation modeling, human resource management, plantation managementAbstract
Purpose of the study: This study investigates the interrelationships among digital workforce management (DWM), employee productivity (EP), and sustainable palm oil production (SPOP) within the operational context of a private Indonesian plantation enterprise, with the objective of elucidating the direct and mediated pathways through which digitalized human resource practices influence enterprise-level sustainability outcomes.
Methodology: A quantitative cross-sectional research design was adopted, utilizing structured questionnaire data collected from 176 valid respondents at PT Tasmapuja Sungai Kuamang Kampar, Kampar Regency, Riau Province, Indonesia, selected via proportional stratified random sampling (response rate: 97.8%). Instruments measuring DWM (12 items), EP (10 items), and SPOP (14 items) were administered on a five-point Likert scale. Data analysis proceeded through confirmatory factor analysis (CFA) for measurement model validation and structural equation modeling (SEM) via IBM AMOS 26.0 for hypothesis testing, with mediation assessed via bootstrapping with 5,000 resamples.
Results: The structural model yielded satisfactory fit indices (χ²/df = 2.41; CFI = 0.958; RMSEA = 0.065) and accounted for 49.1% of variance in SPOP. DWM exerted a statistically significant positive effect on EP (β = 0.512, p < 0.001) and a direct effect on SPOP (β = 0.287, p = 0.001). EP significantly predicted SPOP (β = 0.478, p < 0.001). Mediation analysis confirmed that EP significantly mediates the DWM–SPOP relationship (indirect effect = 0.245; 95% CI [0.168, 0.334]), accounting for approximately 46% of the total effect.
Conclusions: The integration of digital workforce management technologies into plantation operations substantially enhances employee productivity, which constitutes a pivotal mechanism through which sustainability production targets are attained. The findings provide actionable evidence for plantation enterprise managers and policymakers pursuing digital transformation as an evidence-based pathway to sustainable agricultural productivity within the Indonesian palm oil sector.
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