Predicting engagement and performance through firm’s internal factors

Purpose: The purpose of this paper is to investigate how the firm’s internal factors influence employee engagement (EE), which, in turn, enhances the performance of textile employees. Furthermore, the present study pursues to address the indirect effect of EE on the relationship between the firm’s internal factors and employee performance. Design/methodology/approach: Data were taken from 355 participants working in textile mills through a survey approach. Structural equation modeling was run to confirm the proposed model and structural relationships. Findings: Results highlight that internal communication and reward and recognition are significantly related to EE, except for work‒life balance. Furthermore, EE has a significant effect on the performance of textile employees. Practical implications: The present study helps the textile managers to improve employee performance while focusing on the firm’s internal factors of engagement. Proactive internal communication and reward system will help to bring a competitive edge and achieve the organizational goals. The findings also provide managers the information to reduce the organization interruptions in enhancing EE and performance. Originality/value: This study covered the hidden gap in the previous literature on EE and performance, especially in the field of the textile sector by employing Kahn’s theory of engagement.