The Effect of Physical Work Environment and Work Motivation on Innovative Work Behavior and the Mediating Effect of Work Engagement in Startup Companies

Abstract:

Indonesia is currently experiencing the “curious paradox” phenomenon in that digital users are the most active in the world and they show high enthusiasm in working in startup businesses, but internet penetration among Indonesian consumers is still not optimal (Das, Gryseels, Sudhir, & Tan, 2016). According to the data from Tech in Asia, the creation of new startup businesses from 2016 through the second quarter of 2017 fell 23 percent. Some startups are closing or changing their business models. Despite this decline, products offered to consumers by startup companies are innovative. Hence, it is important for startups to encourage their employees to innovate and practice innovative behaviors. Innovative work behavior is a term mentioned by West and Farr (1989), which is a behavior to create something, apply new ideas at work, both by individuals and in groups, with the purpose of improving company performance. The importance of innovation in the effectiveness of company performance has been recognized in the work of several previous researchers (e.g. Janssen, 2000; Yuan & Woodman, 2010; Prieto & Pérez-Santana, 2014). Startups try to increase the innovative work behavior of their employees in a number of ways. Considering that the majority of their employees are from the millennial generation, non-traditional ways are more common, such as by providing open spaces designed to promote interaction among employees. Work spaces may also be creatively decorated and encouraging employee personalities to show in their work space. Some advanced startup companies even have a special room to play Arcade Games as a means of reducing tension from long hours of intense focus. In addition, every startup company also provides small spaces equipped with boards to jot down ideas when the employees hold discussions so that information is viewable and visual thinking from the outset and not just verbal thinking is promoted in the group.