Employee engagement as a mediating variable on the relationship between employee relation practice and employee performance in a developing economy

PurposeThe aim of this research is to investigate the mediating effect of employee engagement (EE) on the relationship between employee relation practice and employee performance in Malaysian private universities (MPUs).Design/methodology/approachThis paper used a survey research design, and the study unit of the analysis consists of the academic staff of MPU. A sample of 314 teaching staff was used out of the target population (10,473) of the research, while simple random and stratified sampling techniques were used in order to determine the research sample. Data for the research were collected from the target participants via questionnaires, and partial least square-structural equation modelling (PLS-SEM) was utilized to evaluate the research hypotheses.FindingsThe outcome of the research revealed that employee relation practice (ERP) has a substantial effect on employee performance (EP), and EE partially mediates the relationship between ERP and EP.Practical implicationsThe outcome of this study has urged the universities' management to focus on building effective and sustainable ERP that will ensure academic engagement that can result to sound academic performance and university growth.Originality/valueThis research has contributed significantly to the body of knowledge by operationalizing EP, ERP and EE literature. In extension, this research contributes to develop the literature of leaders, acknowledging the ERP as an important tool for leadership growth.