Linking Perceived Organizational Support and Ethical Leadership to Employee Wellbeing: The Mediating Role of Job Crafting

Abstract

This study examines how perceived organizational support and ethical leadership influence employee wellbeing in foreign-invested plantation organizations, addressing a gap in the literature regarding the distinct roles of behavioral and attitudinal mediators in labor-intensive contexts. While prior studies often position job crafting and work engagement as complementary mechanisms, this study explicitly compares their mediating roles within a single framework. Using a quantitative design, data were collected from 170 employees out of a population of 258 through a census-based approach and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that perceived organizational support (β = 0.290, p < 0.05) and ethical leadership (β = 0.372, p < 0.05) have significant positive effects on employee wellbeing. Job crafting also has a significant positive effect on wellbeing and significantly mediates the relationships between perceived organizational support and wellbeing as well as between ethical leadership and wellbeing (p < 0.05). In contrast, work engagement does not have a significant direct or mediating effect (p > 0.05). These findings emphasize job crafting as the key empirically supported mechanism linking organizational support and ethical leadership to employee wellbeing, highlighting the importance of proactive work behaviors over attitudinal states in plantation settings. This study contributes to the literature by clarifying the differential roles of mediators and provides practical implications for designing interventions that foster employee-initiated job redesign to enhance wellbeing in labor-intensive industries.

KEYWORDS employee wellbeing; foreign-invested companies; leadership; organizational support; plantation.

Introduction

The aspiration for happiness and prosperity is universal, extending to the workplace as well. Employee welfare is a crucial element in fostering a healthy and productive organization, as organizations that emphasize employee wellbeing tend to achieve higher performance outcomes (Robledo et al., 2019). From a human resource management standpoint, wellbeing encompasses not just financial dimensions but also physical and emotional wellbeing, as well as job satisfaction experienced both within and beyond the workplace (Mugizi et al., 2021). The interaction between organizations and employees is mutually reinforcing (Kim & Kim, 2020); the organization need skilled people for operational continuity (Aman-ullah et al., 2022), while employees depend on the organization for income and self-actualization (Rajakumar et al., 2024). Consequently, employee welfare ought to be regarded as an investment rather than only an expense, since thriving personnel are more inclined to exhibit elevated work engagement, enhanced productivity, and substantial contributions to organizational advancement. Comprehending the determinants that affect employee wellbeing is crucial for organizations in establishing a supportive and sustainable workplace. Employee wellbeing, from a human resource management perspective, encompasses psychological an d physical health, job satisfaction, and work–life balance (Mugizi et al., 2021). It is a critical determinant of organizational effectiveness, as employee wellbeing is closely linked to performance and sustainability (Aubouin-bonnaventure et al., 2024). Beyond internal organizational factors, wellbeing is increasingly shaped by broader dynamics such as digital transformation, evolving labor regulations, and changing work environments (Jaiswal & Dyaram, 2019). Importantly, wellbeing extends beyond material conditions to include self-fulfillment, life balance, and positive social relationships (Ruggeri et al., 2020), reinforcing its multidimensional nature. Consequently, employee wellbeing has become a strategic priority, with 68% of HR leaders identifying it as a central organizational concern (Meister, 2021). However, despite extensive research on employee wellbeing, existing studies have largely focused on service, manufacturing, and public sector contexts, leaving plantation-based organizations particularly in foreign-invested settings in developing countries such as Indonesia underexplored. This limitation is critical because plantation environments are structurally and operationally distinct, characterized by high physical demands, rigid hierarchies, and limited job autonomy. Such conditions may shape employee attitudes and behaviors differently, potentially altering the relationships between organizational support, leadership, and wellbeing compared to other sectors. Therefore, examining employee wellbeing within plantationbased foreign-invested firms is not only contextually relevant but also necessary to uncover mechanisms that may not be observable in less labor-intensive or more flexible work settings. In the plantation industry, particularly within the private sector in North Sumatra, the concern for employee wellbeing is becoming progressively pertinent. Plantation organizations represent a crucial economic sector that employs a significant workforce and contributes to Gross Domestic Product (GDP). The rising number of plantation organizations, especially those with Foreign Investment (FI) legal entities, is amplifying the demand for comprehensive workforce welfare. Nonetheless, while financial elements like salary and incentives are comparatively sufficient, non-financial wellbeing remains an issue. Elements such as professional advancement prospects, workplace atmosphere, work-life equilibrium, and principled leadership significantly influence overall employee wellbeing. The Problem Statement Despite the growing emphasis on employee wellbeing in human resource management literature, a gap persists between financial and non-financial dimensions of wellbeing across industries. In plantation settings, employees generally receive adequate financial compensation; however, nonfinancial factors such as perceived organizational support, career development opportunities, and ethical leadership remain critical yet often insufficiently addressed (Sabillón, 2021; Siregar , Z Lubis, V G Rahmadani, 2024). This indicates that employee wellbeing is shaped not only by financial rewards but also by broader work experiences. Although prior studies commonly report a positive relationship between perceived organizational support and employee wellbeing (Kurtessis et al., 2017a), the strength and consistency of this relationship remain inconclusive, particularly in laborintensive sectors such as plantations. Similarly, while ethical leadership is generally associated with improved wellbeing through fair and supportive practices (Ali et al., 2021; Walumbwa & Schaubroeck, 2009), empirical findings are not always consistent across contexts. Work engagement has also been linked to employee wellbeing (Robertson & Cooper, 2010), however, its role in plantation environments remains underexplored and yields mixed results. In contrast, job crafting defined as employees’ proactive efforts to modify their tasks and work environment to create meaning (Bakker et al., 2014), has shown promise as a more behavior-based

mechanism for enhancing wellbeing. Nevertheless, limited research has directly compared the roles of job crafting and work engagement, particularly within plantation contexts. The Gaps This study addresses three interrelated research gaps. First, the relationship between perceived organizational support and employee wellbeing remains inconsistent, particularly in labor-intensive contexts such as plantations. While many studies report a positive association, others show weaker or non-significant effects, suggesting that contextual conditions may shape this relationship. This inconsistency motivates the inclusion of perceived organizational support as a key antecedent of employee wellbeing in the present model. Second, although ethical leadership has been widely linked to positive employee outcomes, most evidence is derived from service and manufacturing sectors. Empirical studies in plantation-based organizations especially foreign-invested firms remain limited. Given the distinct characteristics of plantation environments, including hierarchical structures and high physical demands, it is unclear whether the established effects of ethical leadership on wellbeing are transferable to this context. This gap underpins the inclusion of ethical leadership as a central predictor in the model. Third, while both job crafting and work engagement have been associated with employee wellbeing, prior research has rarely examined their roles simultaneously or comparatively, particularly in plantation settings. Moreover, their underlying mechanisms differ, with job crafting reflecting proactive behavioral adjustment and work engagement representing an attitudinal state. The lack of comparative evidence motivates this study to examine both variables as mediating mechanisms, in order to identify which pathway more effectively links organizational and leadership factors to employee wellbeing.

Research Questions and Contributions This study addresses the following research questions: RQ1: How does perceived organizational support influence employee wellbeing? RQ2: How does ethical leadership influence employee wellbeing? RQ3: How does job crafting influence employee wellbeing? RQ4: Does job crafting mediate the relationship between perceived organizational support and employee wellbeing? RQ5: Does job crafting mediate the relationship between ethical leadership and employee wellbeing? RQ6: Does work engagement mediate the relationship between perceived organizational support and employee wellbeing? RQ7: Does work engagement mediate the relationship between ethical leadership and employee wellbeing? This study makes three distinct contributions. First, theoretically, it extends the Job Demands–Resources (JD-R) framework and organizational support theory by demonstrating the differential roles of behavioral and attitudinal mechanisms, showing that job crafting serves as a more salient pathway to employee wellbeing than work engagement in plantation contexts. Second, methodologically, it employs PLS-SEM to test a multiple mediation model using data from foreign-invested plantation firms, providing robust evidence from a context that remains underrepresented in prior research. Third, practically, the findings suggest that organizations should prioritize strengthening organizational support and ethical leadership while fostering job crafting, as proactive work redesign appears more effective than relying solely on engagement-based strategies.

Literature Review and Hypotheses Development

Organizational Support, Job Crafting, Work Engagement, and Employee Well-being The term perceived organizational support (POS) refers to employees’ perceptions of the extent to which the organization values their contributions and cares about their well-being (Eisenberger et al., 2019). Drawing on social exchange theory, POS is expected to foster a reciprocal relationship in which employees respond to organizational care with positive attitudes and improved wellbeing (Slemp et al., 2015). When employees perceive high levels of support, they are more likely to feel valued, secure, and psychologically satisfied, which in turn enhances their overall wellbeing. In the plantation sector, which is characterized by demanding physical conditions and psychological challenges, POS plays a critical role in maintaining employee wellbeing. Excessive workloads, harsh field environments, and limited access to occupational health and safety resources may negatively affect employees’ physical and psychological conditions if not balanced by adequate organizational support (Myrvang, 2020). In this context, organizational support functions as an important resource that helps employees cope with job demands and reduces work-related stress (Gulzar et al., 2020). Furthermore, organizational initiatives such as welfare programs, access to healthcare facilities, fair compensation, and performance-based incentives contribute to strengthening employees’ sense of support. These practices not only enhance job satisfaction and motivation but also reinforce employees’ emotional attachment to the organization. Empirical evidence supports this relationship. For example, (Yunita et al., 2019) found that plantation employees who perceived higher organizational support experienced lower stress levels and higher productivity. Additionally, support programs such as health benefits, adequate housing, and skills development opportunities have been shown to improve employees’ psychological wellbeing. Conversely, employee wellbeing (EWB) in the plantation sector is significantly affected by several external factors, including job pressure, recovery mechanisms, and the quality of relationships between employees and supervisors (Siregar, Z Lubis, V G Rahmadani, 2024). POS mitigates the adverse effects of work pressure by fostering a more supportive and inclusive workplace atmosphere. Moreover, (Vanani, 2024) shown that organizations offering transparent communication channels, and adaptable work practices enhance employee emotional and psychological wellbeing. Moreover, a sense of security in the workplace and constructive interpersonal interactions with management are crucial elements in enhancing employee wellbeing on plantations. When employees see that the organization genuinely addresses their needs, it enhances job satisfaction and cultivates enduring dedication and loyalty to the organization. Consequently, enhancing POS in organization plantations positively influences individual wellbeing as well as the sustainability of operations and the long-term competitiveness of the organization. Furthermore, perceived organizational support (POS) plays a critical role in stimulating proactive employee behaviors, including job crafting ; (Kardas, 2023; Petrou et al., 2018). Grounded in social exchange theory and the job demands–resources (JD-R) framework, POS can be understood as an important organizational resource that encourages employees to reciprocate through constructive and proactive work behaviors. When employees perceive that the organization values their contributions and cares about their wellbeing, they develop a sense of obligation and psychological safety, which motivates them to take initiative in shaping their work roles. In the context of job crafting, this support enables employees to actively modify their tasks, relationships, and cognitive perceptions of work. Specifically, POS provides the psychological and contextual resources necessary for employees to engage in task crafting (e.g., improving work methods), relational crafting (e.g., strengthening collaboration with colleagues), and cognitive

crafting (e.g., redefining the meaning of their work). This mechanism is particularly relevant in plantation work settings, where jobs are often physically demanding and structurally constrained. Under such conditions, organizational support reduces perceived risks associated with proactive behavior and empowers employees to make adjustments that better align job demands with their capabilities. Moreover, in plantation environments characterized by limited autonomy, POS becomes a crucial enabler of job crafting by fostering confidence and reducing job-related stress. Employees who feel supported are more likely to initiate changes that enhance work efficiency and personal relevance, rather than passively accepting rigid work structures. This targeted influence of POS on job crafting behavior provides a clearer theoretical basis for the hypothesized relationship (Gulzar et al., 2020), rather than relying on broad claims about general performance or organizational outcomes. Therefore, it can be argued that perceived organizational support directly encourages job crafting behaviors by providing the necessary psychological resources and reducing constraints associated with proactive role modification, particularly in high-demand work environments such as the plantation sector.

Ethical Leadership, Job Crafting, Work Engagement, and Employee Wellbeing Ethical leadership plays a critical role in shaping a supportive work environment that enhances employee wellbeing, particularly in the plantation sector, where employees are frequently exposed to physically demanding tasks and psychological pressures (Avey et al., 2012). Drawing on Social Exchange Theory and Social Learning Theory, ethical leaders influence employee attitudes and behaviors by demonstrating fairness, integrity, transparency, and genuine concern for employee welfare. Through these behaviors, leaders create a climate of trust and psychological safety that enables employees to feel respected valued and emotionally supported (Wen et al., 2021). This mechanism is especially important in plantation work settings, where employees often face uncertainty related to production targets, environmental conditions, and limited workplace resources. Ethical leadership reduces employees’ psychological strain by fostering fair treatment, open communication, and supportive interpersonal relationships. As employees perceive their leaders as ethical and trustworthy, they are more likely to experience lower stress levels and greater emotional stability, which ultimately improves their wellbeing (Siregar , Z Lubis, V G Rahmadani, 2024). In addition, ethical leadership can stimulate proactive work behaviors such as job crafting. Employees who work under ethical leaders tend to feel safer in expressing ideas, modifying work approaches, and seeking better ways to manage job demands. Ethical leaders also encourage autonomy and participation in decision-making, which provides employees with the confidence to reshape aspects of their work to better align with their skills and personal needs. This proactive adjustment process can subsequently enhance work engagement because employees become more psychologically connected to their roles and experience greater meaning in their work. Previous studies generally support the positive relationship between ethical leadership, wellbeing, and work engagement across various sectors, including education, healthcare, and service industries (Jr & Dimitriou, 2021). However, findings across labor-intensive sectors such as plantations and manufacturing remain relatively limited and sometimes inconsistent due to differences in work characteristics, organizational culture, and levels of job autonomy (Chen et al., 2026; Darmilisani et al., 2025). Therefore, examining ethical leadership within the plantation context is important to clarify how ethical leader behaviors influence employee wellbeing, job crafting, and work engagement under high-demand working conditions. Moreover, ethical leadership contributes to enhancing employee job satisfaction and engagement, which subsequently positively affects their general wellbeing. Leaders who implement ethical principles not only offer explicit work guidance but also foster enhanced communication with their staff, thus cultivating a more inclusive and supportive workplace environment (Halbusi et al., 2020). In the plantation sector, collaboration is crucial for maintaining seamless production and operational efficacy. Consequently, ethical leaders will endeavor to cultivate a more robust work culture, wherein employees feel engaged in decision-making and possess opportunities for growth. Moreover, numerous research indicate that an ethical leadership style might diminish burnout and enhance worklife balance (Sarwar et al., 2020; Teimouri et al., 2018; Wen et al., 2021). In the context of plantations, where substantial workloads and production demands can pose significant obstacles, ethical leadership can serve as a remedy to foster a more compassionate work environment, strengthen employee loyalty and contribute to the organization’s sustained long-term success. Job Crafting and Employee Wellbeing Job crafting can be defined as an employee's capacity to proactively modify duties, work relationships, and their outlook on work to enhance performance and personal fulfillment (Tims et al., 2013). This process allows individuals to transform social connections, regulate job expectations, and redefine the significance of their employment to enhance a positive self-identity. Upon the formation of this identity, employees not only attain professional satisfaction but also exhibit enhanced psychological well-being, manifested in motivation, resilience, and organizational loyalty. Prior studies indicate that flexibility in job crafting is essential for enabling individuals to endure stressful work circumstances (Moreira et al., 2022), while concurrently improving organizational competitiveness by fostering a healthier and more productive workforce (Holman et al., 2023; Silva et al., 2022; Vakola & Xanthopoulou, 2022). Empirical evidence indicates that job crafting enhances employee well-being by enabling individuals to customize their work experiences according to their talents, interests, and values. (Harju et al., 2021) discovered that job crafting enhances job-related resources and diminishes work overload, hence fostering an environment more favorable to well-being. Moreover, (Shi & Zhang, 2022) highlighted that employees who are authorized to modify and adjust their jobs generally exhibit elevated employees’ engagement in their work and their level of job satisfaction. Furthermore, (Signore et al., 2024) underscored the significance of this empowerment as it cultivates a sense of autonomy and control over work, which are fundamental to psychological well-being (Park et al., 2020). Consequently, job crafting can be perceived not merely as an adaptation method but also as a transformative approach that empowers individuals to attain more meaningful, balanced, and sustainable work environments. Work Engagement and Employee Wellbeing Employee engagement has been widely associated with positive workplace outcomes, including employee wellbeing (Oubibi et al., 2022). Engaged employees generally demonstrate higher levels of energy, dedication, and involvement in their work, which may contribute to more positive psychological experiences at work (Ferreira et al., 2020). Previous studies suggest that employees who feel connected to their work and organization tend to experience

greater job satisfaction and lower levels of stress, although the strength of this relationship may differ across organizational contexts. In the plantation sector, where work often involves considerable physical and mental demands, employee engagement may help employees maintain motivation and adapt more effectively to challenging working conditions. Support from supervisors and colleagues, opportunities for development, and participation in workplace decisions can contribute to higher engagement levels and potentially support employee wellbeing. However, the relationship between engagement and wellbeing may not always be direct, as employee wellbeing can also be influenced by other factors such as workload, work environment, organizational support, and leadership practices. Therefore, understanding the potential role of employee engagement in employee wellbeing remains important, particularly in labor-intensive sectors such as plantations, where work conditions may shape how engagement contributes to employees’ overall wellbeing.

Job Crafting and Employee Work Engagement Employee wellbeing is a crucial factor that enhances the stability and efficacy of an organization's operations. An effective method to enhance employee wellbeing is job crafting, an activity undertaken autonomously by individuals to adjust their work to better align with their personal preferences, abilities, and career objectives (Tims et al., 2013). People can improve their job resources by using job crafting., remove obstacles that impede productivity, and boost work engagement, resulting in improved overall wellbeing (Zhang & Parker, 2019). In a challenging work environment, employees' capacity to restructure duties and cultivate more significant social contacts enhances psychological wellbeing and boosts work motivation. Recent studies indicate that persons who proactively modify aspects of are more likely to achieve higher levels of job satisfaction, which consequently enhances their overall wellbeing. The use of job crafting in organizations yields benefits through two primary mechanisms: enhancing job challenges and minimizing extraneous elements of everyday duties. (Tims et al., 2013) propose that persons who incorporate more complex task variations generally experience enhanced wellbeing, as they feel more motivated and empowered in their employment. In contrast, personnel who circumvent workinhibiting obstacles, such as role conflict or excessively intricate regulations, encounter less stress and burnout, leading to enhanced emotional wellbeing (Petrou et al., 2018). In arduous physical and mental work environments, the autonomy to tailor tasks and methodologies enables individuals to foster more favorable work experiences, enhance psychological resilience, and boost productivity (Wrzesniewski & Dutton, 2001). Consequently, organizations that facilitate job crafting for employees enhance workforce wellbeing and foster a more dynamic and adaptive work environment. Hypotheses Development This section explains the relationships among the variables underlying the proposed hypotheses and presents the conceptual framework developed in this study (see Figure 1). The study investigates employee wellbeing as influenced by perceived organizational support and ethical leadership, both directly and indirectly through the mediating roles of job crafting and work engagement. By examining these relationships, this study aims to identify factors that contribute to employee wellbeing in foreign-invested plantation organizations in Indonesia. Based on the proposed conceptual framework, the following hypotheses are formulated: H1: Perceived organizational support positively influences Perceived Organizational H1 H10, H11 Support H5 Job Crafting H6 H7 Work Engagement H8 H12, H13 Ethical Leadership H2 Figure 1. Proposed Conceptual Framework employee wellbeing. H2: Ethical leadership positively influences employee wellbeing. H3: Job crafting positively influences employee wellbeing. H4: Work engagement positively influences employee wellbeing. H5: Perceived organizational support positively influences job crafting. H6: Perceived organizational support positively influences work engagement. H7: Ethical leadership positively influences job crafting. H8: Ethical leadership positively influences work engagement. H9: Job crafting positively influences work engagement. H10: Job crafting positively mediates the relationship between perceived organizational support and employee wellbeing. H11: Job crafting positively mediates the relationship between ethical leadership and employee wellbeing. H12: Work engagement positively mediates the relationship between perceived organizational support and employee wellbeing. H13: Work engagement positively mediates the relationship between ethical leadership and employee wellbeing.

Methods

Measurement Development The measuring scales for all components in this investigation were derived from empirically validated literature, so ensuring the reliability and preliminary validity of the measurement instruments employed. This study employs variables such as perceived organizational support, ethical leadership, work engagement, job crafting and employee wellbeing. Perceived organizational support was assessed adopting a six items derived from the studies of (Eisenberger et al., 2019) , ethical leadership was assessed using eight items derived from the (Brown et al., 2005), work engagement was evaluated using four items derived from (Mäkikangas & Schaufeli, 2021), job crafting was assessed using six items derived from (Tims et al., 2013), and employee wellbeing was evaluated using tens items based on the employee wellbeing derived from (Ryff & Singer, 2008). Moreover, all

H3 Employee Wellbeing H9 H4

measurements were evaluated using a five-point Likert scale, with 1 representing 'strongly disagree' and 5 denoting 'strongly agree', a standard methodology in management and organizational psychology research to enhance data sensitivity and reduce respondent bias. The questionnaire was first created in English and subsequently translated into Indonesian by a back-translation method performed by two independent translators, following (Brislin, 1980) guidelines to guarantee conceptual and linguistic equivalence within the research environment. Sampling and Data Collection Data were collected by distributing questionnaires via email to all 258 employees working in foreign-invested private plantation organizations in North Sumatra, adopting a census approach. A total of 170 valid responses were returned and used for analysis, representing a response rate of approximately 65.9%. Data collection was conducted from May to December 2024. All participants had a minimum of three years of work experience in the plantation sector, ensuring familiarity with the organizational context. Analysis Technique This study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine the proposed relationships. PLS-SEM is suitable for analyzing complex causal models and is widely used in exploratory and predictive research (Hair et al., 2017). The analysis involves two stages: the measurement model (outer model) to assess validity and reliability, and the structural model (inner model) to test the hypothesized relationships.

Result and Discussion

Sample Profile This study's respondents exhibit many demographic features, such as gender, age, level of education, work experience, and marital status, and organizational level within foreign-invested private plantation organizations in North Sumatra. Male participants constituted the majority of the respondents (90.59%), while females constituted only 9.41%, indicating a majority of male employees in the physically demanding plantation industry. The largest proportion of Table 1. Characteristic of Respondents Characteristic

Items Frequencies Percentage (%) Gender

Male 154 90.59

Female 16 9.41

Age (Years) <30 17 10

31-39 62 36.47

40-49 60 35.29

>50 31 18.24

Working Experience (Years) 3-7 44 25.88

8-14 32 18.82

15-19 41 24.12

>20 53 31.18 Educational Level

Bachelor 152 89.41

Master 15 8.82

Doctor 3 1.76 Marital Status

Married 160 94.12

Single 10 5.88

Roles Junior Assistant 47 27.65

Senior Assistant 77 45.29

Chief 33 19.41

Senior Chief 13 7.65 Table 2. Measurement Model Evaluation (Convergent Validity and Reliability) Construct Code Factor Loading CR Cronbach’s POS_1 0.923 POS_2 0.925 POS_3 0.864 POS_4 0.904 POS_5 0.938 POS_6 0.927 Organizational Support EL_1 0.921 EL_2 0.922 EL_3 0.955 EL_4 0.945 EL_5 0.919 EL_6 0.911 EL_7 0.948 EL_8 0.935 Ethical Leadership JC_1 0.940 0.869 0.827 0.768 JC_2 0.944 JC_3 0.869 JC_4 0.778 Job Crafting WE_1 0.897 WE_2 0.892 WE_3 0.901 WE_4 0.885 WE_5 0.887 WE_6 0.876 Work Engagement EWB_1 0.891 EWB_2 0.894 EWB_3 0.887 EWB_4 0.862 EWB_5 0.754 EWB_6 0.875 EWB_7 0.909 EWB_8 0.724 EWB_9 0.891 EWB_10 0.850 Employee Wellbeing respondents were in the 30–39 age group (36.47%), followed by those aged 40-49 years (35.29%). Respondents under 30 years constituted 10%, while those over 50 years represented 18.24%. The data distribution indicates that the majority of employees involved in this study were of productive age and has considerable job experience. The majority of respondents possessed a bachelor's degree (89.41%), while the remaining

Alpha AVE 0.909 0.706 0.769 0.961 0.752 0.859 0.890 0.777 0.729 0.905 0.824 0.760 8.82% were master’s degree followed by doctoral degree (1.76). This suggests that foreign-invested private plantation organizations typically choose staff whose educational background fosters professionalism in their respective disciplines. Moreover, an analysis of service duration revealed a relatively uniform distribution: 31% of respondents possessed more than 20 years of experience, 25.88% had 3 to Table 3. Fornell-Larcker Criterion POS EL JCC WE EWB POS 0.877

EL 0.782 0.927

JCC 0.638 0.690 0.877

WE 0.570 0.524 0.611 0.854

EWB 0.761 0.785 0.696 0.579 0.872 Table 4. HTMT Ratio POS EL JCC WE EWB POS ---

EL 0.870 ---

JCC 0.820 0.839 ---

WE 0.676 0.590 0.800 ---

EWB 0.890 0.879 0.800 0.684 --- Table 5. Structural Model Results Hypotheses Path Coefficient tValue pValue Results H1: POS → EWB 0.290 3.314 0.001 Accepted H2: EL → EWB 0.372 3.931 0.000 Accepted H3: JC → EWB 0.194 2.904 0.004 Accepted H4: WE → EWB 0.100 1.731 0.084 Rejected H5: POS → JC 0.252 2.179 0.029 Accepted H6: POS → WE 0.306 3.226 0.001 Accepted H7: EL → JC 0.493 4.803 0.000 Accepted H8: EL → WE -0.003 0.032 0.974 Rejected H9: JC → WE 0.418 4.601 0.000 Accepted H10: POS → JC → EWB 0.149 2.684 0.008 Accepted H11: EL → JC → EWB 0.095 2.521 0.012 Accepted H12: POS → WE → EWB 0.031 1.457 0.145 Rejected H13: EL → WE → EWB 0.000 2.684 0.978 Rejected 7 years, and 24.12% had 15 to 19 years, while the remaining 18.82% had 8 to 14 years of experience. The majority of individuals has adequate job experience to comprehend the intricacies of the plantation business. Respondents occupied diverse roles, with junior assistant comprising 27.65%, senior assistant 45.29%, chief 19.41% and senior chief 7.65%. This survey also included employees from other major foreigninvested private plantation organizations in North Sumatra, many of whom implement unique employee welfare strategies. The statistics suggest that the study encompasses respondents with varying degrees of expertise, responsibilities, and work situations, hence offering comprehensive insights into employee welfare in the foreigninvested private plantation organizations. Common Method Variance This study employed Harman's single-factor test to address potential problems regarding common method variance, as suggested by (Baumgartner , M . E ., Dinan , M ., Langton , P . F ., Kucinski , I ., & Piddini, 2021) .This method

evaluates if a singular latent component accounts for the predominant variance within a dataset. The research indicated that CMV represented merely 12.55% of the total variation, significantly lower than the widely recognized threshold of 50%. The data indicate that CMV does not significantly undermine the validity of this study's conclusions. Measurement Model In this study, hypothesis testing is carried out using the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach with the support of SmartPLS 4 software. This technique is considered appropriate because it enables the simultaneous examination of measurement accuracy and the relationships among latent constructs (Fornell & Larcker, 1981). The analytical procedure is divided into two distinct phases. The first phase focuses on evaluating the measurement model through Confirmatory Factor Analysis (CFA), which aims to ensure that the indicators appropriately reflect their underlying constructs by assessing both convergent and discriminant validity. The second phase involves testing the structural model, where the proposed relationships are examined by analyzing the significance levels of the estimated path coefficients. To verify the internal consistency of the constructs, reliability testing is conducted using Cronbach’s Alpha and Composite Reliability (CR). The results demonstrate that all constructs meet the recommended reliability standard, with values exceeding 0.70, as presented in Table 1. In addition, evidence of convergent validity is established, as all constructs show Average Variance Extracted (AVE) values above 0.50 and indicator loadings greater than 0.70 (see Table 2). These findings indicate that the measurement model is both reliable and capable of adequately representing the constructs under investigation. In addition, the AVE values range between 0.729 and 0.859, which are above the recommended minimum threshold. Consequently, these findings confirm that the requirement for convergent validity in this research has been satisfactorily achieved. Moreover, to guarantee discriminant validity, this study employed a multimethod approach to enhance the analytical outcomes. This study initially employed the Fornell-Larcker criteria, with the results displayed in Table 3. The results indicated that the diagonal value of each construct exceeded the correlation between the related constructs, thereby affirming that each construct possesses distinct properties and does not exhibit conceptual overlap (Fornell & Larcker, 1981). Secondly, discriminant validity was further enhanced by the Heterotrait - Monotrait Ratio (HTMT) analysis (see table 4). The analytical results indicated that all HTMT values were significantly below the stringent threshold of 0.90 (Henseler et al., 2015). Consequently, these data validate that the study model adheres to rigorous discriminant validity criteria, guaranteeing distinctiveness among constructs and there is no excessive correlation among latent variables. Once the measurement model was verified in terms of validity and reliability, the analysis proceeded to the evaluation of the structural relationships within the proposed model. This stage employed a bootstrapping technique with 5,000 subsamples to test the significance of the hypothesized paths. The detailed results are presented in Table 5. The findings indicate that perceived organizational support exerts a positive and statistically significant influence on employee wellbeing (β = 0.290, p = 0.001). Similarly, ethical leadership (β = 0.372, p < 0.000) and job crafting (β = 0.194, p = 0.004) are also shown to have significant positive effects on employee wellbeing. In contrast, although work engagement displays a positive coefficient (β = 0.100), its effect is not statistically significant (p = 0.084). Further examination reveals that organizational support significantly predicts job crafting (β = 0.252, p = 0.029) as well as work engagement (β = 0.306, p = 0.001). Ethical leadership is found to have a strong and significant positive effect on job crafting (β = 0.493, p < 0.000), yet it does not significantly affect work engagement (β = −0.003, p = 0.974). In addition, job crafting is shown to significantly enhance work engagement (β = 0.418, p < 0.000). The study also explores the mediating mechanisms of job crafting and work engagement in linking organizational support and ethical leadership to employee wellbeing. The results confirm that job crafting serves as a significant mediator, transmitting the effects of both organizational support (β = 0.149, p = 0.008) and ethical leadership (β = 0.095, p = 0.012) on employee wellbeing. Conversely, work engagement does not exhibit a meaningful mediating role in the relationships between organizational support (β = 0.031, p = 0.145) or ethical leadership (β = 0.000, p = 0.978) and employee wellbeing. This study examines the direct and indirect relationships between perceived organizational support, ethical leadership, job crafting, work engagement, and employee wellbeing in foreign-invested private plantation organizations. The discussion is structured based on the results of the hypotheses, distinguishing between supported and unsupported relationships. The findings indicate that perceived organizational support has a significant positive effect on employee wellbeing (H1 supported). This suggests that employees who perceive higher organizational support experience greater wellbeing. This result aligns with prior studies (Kurtessis et al., 2017b; Wattoo & Xi, 2018), which highlight the role of organizational support in enhancing employees’ emotional and psychological conditions. In the plantation context, support from supervisors, fair treatment, and favorable working conditions appear to be critical drivers of employee wellbeing. Similarly, ethical leadership significantly influences employee wellbeing (H2 supported). This finding confirms that leaders who demonstrate fairness, integrity, and ethical behavior contribute positively to employees’ psychological wellbeing (Saleem et al., 2020). Ethical leadership fosters trust and a sense of justice, which enhances employee satisfaction and emotional stability. Furthermore, job crafting has a significant positive effect on employee wellbeing (H3 supported). This indicates that employees who proactively modify their tasks and work environment tend to experience higher wellbeing. This finding supports prior research suggesting that job crafting enables employees to better align their work with personal needs, thereby improving psychological outcomes. However, work engagement does not show a statistically significant effect on employee wellbeing (H4 not supported). This suggests that, in this context, higher engagement does not necessarily translate into improved wellbeing. Several explanations may account for the non-significant effect of work engagement on employee wellbeing. First, the plantation sector is characterized by physically demanding tasks and high job pressures, where engagement may reflect effort and persistence rather than positive psychological outcomes. Second, there may be conceptual overlap between work engagement and job crafting, which could reduce the distinct explanatory power of engagement in the model. Third, the sample consists of experienced employees, who may rely more on proactive coping strategies such as job crafting rather than emotional attachment to their work. Finally, the presence of stronger predictors, particularly job crafting and ethical leadership, may suppress the statistical effect of work engagement in explaining employee wellbeing. This finding is consistent with (Hakanen & Schaufeli, 2012), who note that engagement does not always directly predict wellbeing. The results further show that perceived organizational support significantly influences job crafting and work engagement (supported hypotheses). Employees who perceive strong organizational support are more likely to proactively reshape their jobs and become more engaged in

their work. This finding is consistent with (Oubibi et al., 2022) and (Tabak & Hendy, 2016), who emphasize the importance of organizational support in fostering proactive work behaviors. In addition, ethical leadership significantly influences job crafting but does not significantly affect work engagement (partially supported). Ethical leaders may encourage open communication and idea-sharing, which facilitates job crafting. However, their influence may not be sufficient to enhance employees’ emotional attachment to their work, particularly in demanding plantation environments. Moreover, job crafting significantly influences work engagement (supported), indicating that employees who actively shape their work roles tend to be more engaged. This supports prior studies (Harju et al., 2021; Petrou et al., 2018) which highlight job crafting as a key driver of engagement. The mediation analysis reveals that job crafting significantly mediates the relationship between perceived organizational support and employee wellbeing (supported). This finding suggests that perceived organizational support enhances employee wellbeing indirectly by encouraging employees to proactively redesign their work. In addition, job crafting also significantly mediates the relationship between ethical leadership and employee wellbeing (supported). This indicates that ethical leadership promotes employee wellbeing through the development of proactive work behaviors. In contrast, work engagement does not demonstrate a significant mediating effect in either pathway (not supported). This indicates that work engagement does not function as a key mechanism linking perceived organizational support or ethical leadership to employee wellbeing in this study. A possible explanation is that engagement alone may not be sufficient to improve wellbeing without supportive job conditions or opportunities for job redesign. Overall, these findings emphasize the central role of job crafting in enhancing employee wellbeing, while highlighting the limited mediating role of work engagement in this context. These findings suggest that the role of work engagement in explaining employee wellbeing may be contextdependent and overshadowed by more proactive behavioral mechanisms such as job crafting.

Conclusion

Theoretical Implication The results of this study contribute to the employee wellbeing literature by extending the Job Demands–Resources (JD-R) framework and organizational support theory in the context of foreign-invested plantation companies. The findings show that perceived organizational support and ethical leadership function as key job resources that significantly enhance employee wellbeing, reinforcing the view that supportive organizational environments and ethical managerial practices are critical antecedents of employee psychological outcomes. Furthermore, job crafting emerges as a central explanatory mechanism linking these job resources to employee wellbeing, highlighting the importance of employee proactivity in translating organizational and leadership support into positive psychological states. This strengthens the JD-R framework by emphasizing that wellbeing is not only a direct outcome of job resources but also depends on employees’ active role in redesigning their work. In contrast, work engagement does not significantly influence employee wellbeing, which differs from several prior studies. This suggests that in high-demand plantation work environments, attitudinal engagement alone may be insufficient to explain wellbeing outcomes. Instead, behavioral mechanisms such as job crafting appear to play a more dominant role, indicating that employee wellbeing is more strongly shaped by proactive job redesign than by engagement states in this context. Practical Implication The findings of this study confirm that perceived organizational support and ethical leadership have a significant positive effect on employee wellbeing, and also play an important role in promoting job crafting. Therefore, organizations should prioritize strengthening supportive work environments, including fair treatment, supervisor support, and transparent organizational policies, as these factors directly enhance employee wellbeing. In addition, organizations are encouraged to foster job crafting behaviors, as job crafting was found to significantly improve employee wellbeing and act as a key mechanism linking organizational and leadership factors to wellbeing. This can be achieved through initiatives such as employee empowerment programs, participative decision-making, and flexible job design that allow employees to proactively shape their work roles. Furthermore, the development of ethical leadership should remain a strategic priority. Leaders who demonstrate integrity, fairness, and transparency contribute directly to employee wellbeing and indirectly support it through encouraging job crafting. Organizations can support this by implementing leadership development programs focused on ethical decision-making, communication, and consistency in managerial practices. However, since ethical leadership was not found to have a significant effect on work engagement, organizations should be cautious in assuming that improving leadership alone will enhance employee engagement. Additional strategies beyond leadership such as job design and resource provision—may be required to foster work engagement effectively. Overall, these findings suggest that improving employee wellbeing in plantation organizations requires an integrated approach that emphasizes organizational support, ethical leadership, and proactive job crafting, rather than relying solely on engagement-based strategies. Limitation and Direction for Future Research This research contributes to a deeper understanding of employee wellbeing in foreign-invested private plantation organizations. Nevertheless, several limitations need to be recognized. One important limitation is that the study was conducted within a specific industrial and geographical setting, namely private plantation companies located in North Sumatra. Although the findings provide valuable insights into employee wellbeing within this particular sector, the ability to generalize these results to other industries or regions may be restricted. Consequently, future research should broaden the scope of investigation by including organizations from References Ali, M., Ali, I., Albort-Morant, G., & Leal-Rodríguez, A. L. (2021). How do job insecurity and perceived well-being affect expatriate employees’ willingness to share or hide knowledge? International Entrepreneurship and Management Journal, 17(1), 185–210. https://doi.org/10.1007/s11365-020-00638-1 Aman-ullah, A., Mehmood, W., Amin, S., & Abbas, Y. A. (2022). Human capital and organizational performance: A moderation study through innovative leadership. 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different sectors, such as manufacturing or service industries, in order to determine whether similar patterns emerge in other organizational contexts. Additionally, comparative studies involving different cultural environments or countries could offer a wider perspective on the factors that influence employee wellbeing on a global scale. Furthermore, this research examines job crafting as the sole mediating variable linking ethical leadership and organizational support with employee wellbeing. Future studies may benefit from incorporating additional mediating or moderating variables, including job autonomy, organizational culture, and psychological resilience, to obtain a more comprehensive understanding of the mechanisms that influence employee wellbeing. The inclusion of these factors would enhance the conceptual framework and provide broader insights into how leadership practices, organizational support, and individual characteristics interact to shape employee wellbeing in the workplace.

Author Contributions

Darmilisani and Saimara A.M. Sebayang contributed to the conceptualization and research design of this study. Darmilisani was primarily responsible for the literature review, data collection, data analysis, interpretation of findings, and manuscript drafting. Saimara A.M. Sebayang contributed to the supervision, critical revision of the manuscript, and validation of the research findings. Both authors reviewed and approved the final version of the manuscript and are jointly responsible for the accuracy, integrity, and originality of the research and manuscript.

Acknowledgements

The author would like to express sincere gratitude to all individuals and institutions who contributed to the completion of this research. Special appreciation is extended to the management and employees of the foreign-invested plantation organizations in Indonesia who participated in this study and provided valuable data and insights. The author also acknowledges the support and academic environment provided by Universitas Pembangunan Panca Budi throughout the research and manuscript preparation process. In addition, the author appreciates the constructive comments and suggestions provided by reviewers and editors, which significantly improved the quality of this manuscript. In Triandis, H.C. and Berry, J.W., Eds., Handbook of Cross-Cultural Psychology: Methodology, Allyn and Bacon, 431–433. https://doi.org/https://doi.org/10.3102/00028312005003431 Brown, M. E., Treviño, L. K., & Harrison, D. A. (2005). 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