THE EFFECT OF SELF-EFFICACY AND EXTRINSIC REWARDS ON INNOVATIVE WORK BEHAVIOUR (IWB) MEDIATED BY WORK ENGAGEMENT ON EMPLOYEES AT PERTAMINA IN SUMBAGUT

Abstract

Introduction: This research aims to examine the impact of Work Engagement on Innovative Work Behaviour (IWB) among PT Pertamina employees in North Sumatra (Sumbagut), mediated by Self-Efficacy and Extrinsic Reward. To address the issues, it is essential to exhibit innovative work behaviour of the complex energy industry, including expectations for efficiency, transparent governance, and sustainable innovation
Methods: This study adopts a quantitative methodology via a survey technique via a questionnaire administered to 141 Pertamina employees in Sumbagut. Data analysis was conducted via Structural Equation Modelling (SEM) through AMOS software.
Results: The findings indicated that Self-Efficacy and Extrinsic Reward exert a favourable and significant influence on Innovative Work Behaviour, both directly and via the mediation of Work Engagement. This discovery validates the significance of personal self-assurance and external incentives in fostering work engagement and innovative behaviour among employees.
Conclusion and suggestion: This research offers a tangible contribution to human resource management in designing strategies to improve employee innovation performance by strengthening internal and external factors and creating a work environment that supports engagement.

Keywords: Self-Efficacy, Extrinsic Reward, Work Engagement, Innovative Work Behaviour.