The Effect of Flexible Work Arrangements and Mental Health on Employee Productivity at Logistics Startups in Indonesia

Authors

  • Fatari Fatari Universitas Bina Bangsa
  • Ilma Darojat
  • Isrok Isrok
  • Latif Latif
  • Darsin Darsin

DOI:

https://doi.org/10.58812/sdi.v2i01.2706

Keywords:

Flexible Work Arrangements, Mental Health, Employee Productivity, Logistics Startups, Quantitative Analysis

Abstract

The rapid development of logistics startups in Indonesia has created dynamic working environments that require employees to maintain high levels of productivity while adapting to flexible work systems. This study aims to analyze the impact of flexible work arrangements and mental health on employee productivity in logistics startups in Indonesia. A quantitative research approach was employed using a survey method. Data were collected from 250 employees working in logistics startup companies through structured questionnaires measured using a Likert scale. The collected data were analyzed using Statistical Package for the Social Sciences (SPSS) version 25, including descriptive statistics, validity and reliability tests, and multiple linear regression analysis. The results of the study indicate that flexible work arrangements have a positive and significant effect on employee productivity. In addition, mental health also shows a positive and significant influence on employee productivity. The coefficient of determination shows that flexible work arrangements and mental health jointly explain 42.5% of the variation in employee productivity. These findings suggest that organizations that provide flexible working systems and support employee psychological well-being are more likely to achieve higher productivity levels. This study contributes to the literature on human resource management in startup environments and provides practical insights for logistics startups in developing strategies to enhance employee performance and organizational sustainability.

References

[1] I. Taboada and H. Shee, “Understanding 5G technology for future supply chain management,” Int. J. Logist. Res. …, 2021, doi: 10.1080/13675567.2020.1762850.

[2] G. Tortorella, M. Gloet, D. Samson, S. Kurnia, F. S. Fogliatto, and M. J. Anzanello, “Food supply chain resilience through digital transformation: a mixed-method approach,” Int. J. Logist. Manag., 2024, doi: 10.1108/IJLM-01-2024-0030.

[3] M. F. Sorkun, “Digitalization in logistics operations and industry 4.0: understanding the linkages with buzzwords,” … Des. Futur. Glob. Bus., 2020, doi: 10.1007/978-3-030-29739-8_9.

[4] I. Primiana, Y. Azis, A. Y. Juanim, and A. Herwany, “Improvement Strategy for Supply Chain Performance of the Garment Industry to Decrease Logistics Costs and Enhance Competitiveness,” J. Ind. Intell. Inf. Vol, vol. 4, no. 2, 2016.

[5] F. Palmieri, “A reliability and latency-aware routing framework for 5G transport infrastructures,” Comput. Networks, 2020.

[6] D. Singh, “A Literature Review on Employee Retention with Focus on Recent Trends,” Int. J. Sci. Res. Sci. Eng. Technol., vol. 6, no. 1, pp. 425–431, 2019, doi: 10.32628/ijsrst195463.

[7] P. Quattrone and T. Hopper, “What is IT?: SAP, accounting, and visibility in a multinational organisation,” Inf. Organ., 2006.

[8] M. F. Rahman, “Impact of flexible work arrangements on job satisfaction among the female teachers in the higher education sector,” Eur. J. Bus. Manag., vol. 11, 2019.

[9] M. Noorali and S. Gilaninia, “The Role of Small and Medium - Sized Enterprises in Development,” Niger. Chapter Arab. J. Bus. Manag. Rev., vol. 4, no. 4, pp. 36–40, 2017, doi: 10.12816/0040342.

[10] J. A. Al Harbi, S. Alarifi, and A. Mosbah, “Transformation leadership and creativity: Effects of employees pyschological empowerment and intrinsic motivation,” Pers. Rev., vol. 48, no. 5, pp. 1082–1099, 2019, doi: 10.1108/PR-11-2017-0354.

[11] M. Skare, M. de las Mercedes de Obesso, and S. Ribeiro-Navarrete, “Digital transformation and European small and medium enterprises (SMEs): A comparative study using digital economy and society index data,” Int. J. Inf. Manage., vol. 68, p. 102594, 2023, doi: https://doi.org/10.1016/j.ijinfomgt.2022.102594.

[12] D. J. Hughes, A. Lee, A. W. Tian, A. Newman, and A. Legood, “Leadership, creativity, and innovation: A critical review and practical recommendations,” Leadersh. Q., vol. 29, no. 5, pp. 549–569, 2018, doi: 10.1016/j.leaqua.2018.03.001.

[13] Sajad Ahmad Bhat and Priyanka Patni, “A review: Impact of motivation and toxic work around job culture,” World J. Adv. Res. Rev., vol. 17, no. 3, pp. 747–751, 2023, doi: 10.30574/wjarr.2023.17.3.0463.

[14] G. R. Nagiah and N. Mohd Suki, “Linking environmental sustainability, social sustainability, corporate reputation and the business performance of energy companies: insights from an emerging market,” Int. J. Energy Sect. Manag., 2024, doi: 10.1108/IJESM-06-2023-0003.

[15] Z. Guoqiang and A. Bhaumik, “Work-Life Harmony and Retention of Employees: A Review of The Impact of Flexible Work Arrangements,” Int. J. Adv. Bus. Manag. Res., vol. 2, no. 2, pp. 31–38, 2024.

[16] M. Kumar and M. Saxena, “Assessing the Impact of Remote Work and Flexible Work Schedule on Employee Engagement in Corporate Organizations,” Int. J. Res. Publ. Rev., vol. 5, pp. 1371–1376, Mar. 2024, doi: 10.55248/gengpi.5.0324.0660.

[17] S. Chauhan, “Role Of Flexible Working and Work from Home on Employee Productivity and Performance: An Empirical Study,” PsychologyandEducation, vol. 55, no. 1, pp. 545–553, 2023, doi: 10.48047/pne.2018.55.1.67.

[18] R. Arora, “Relationship between flexible work arrangements, Well-Being, and performance of employees during the COVID-19 pandemic,” Prabandhan Indian J. Manag., vol. 15, no. 2, pp. 8–23, 2022.

[19] G. H. Yeo, C. Tan, D. Ho, and R. F. Baumeister, “How do aspects of selfhood relate to depression and anxiety among youth? A meta-analysis,” Psychol. Med., vol. 53, no. 11, pp. 4833–4855, 2023, doi: 10.1017/S0033291723001083.

[20] M. S. Iswahyudi and S. Ramadhani, “The Effect of Work-Life Balance, Telecommuting, Job Satisfaction, Sleep Duration, and Stress Management on the Physical and Mental Health of Overseas Workers in Jakarta,” West Sci. Interdiscip. Stud., vol. 1, no. 03, pp. 134–142, 2023.

[21] U. Chowdhury, T. Das, S. Mazumder, and S. Gangopadhyay, “Work-Related Musculoskeletal Disorders and Mental Health among Nursing Personnel in the Context of COVID-19 Pandemic in West Bengal, India,” Int. J. Occup. Saf. Heal., vol. 13, no. 2, pp. 234–244, 2023.

[22] M. Bramhankar, S. Kundu, M. Pandey, N. L. Mishra, and A. Adarsh, “An assessment of self-rated life satisfaction and its correlates with physical, mental and social health status among older adults in India,” Sci. Rep., vol. 13, no. 1, p. 9117, 2023, doi: 10.1038/s41598-023-36041-3.

[23] V. SUNITHA, V. V, S. D, JAYKARTHIKEYAN, and SHIVAKUMAR, “a Study on Employees Retention With Reference To Cholamandalam Investment and Finance Company Limited, Chennai,” Russ. Law J., vol. 11, no. 12s, pp. 89–93, 2023, doi: 10.52783/rlj.v11i12s.2004.

[24] O. Morgan Morgan, W. Emu, C. Amadi, E. Okon, and P. Njama, “The mediating effect of job satisfaction on health and safety policy management and employee productivity in manufacturing firms,” Probl. Perspect. Manag., vol. 19, no. 2, pp. 104–117, 2021.

[25] I. N. Latifah, A. A. Suhendra, and I. Mufidah, “Factors affecting job satisfaction and employee performance: a case study in an Indonesian sharia property companies,” Int. J. Product. Perform. Manag., 2023.

[26] V. M. Dincă and S. Moagăr-Poladian, “Impact of Flexible Working Opportunities on Romanian Employees Work-Life Balance and Interest in Acquiring New Knowledge,” in Proceedings of the International Conference on Business Excellence, 2023, pp. 1203–1212.

[27] A. G. Kaaria and S. S. Mwaruta, “Mental Health Ingenuities and the Role of Computer Technology on Employees’ Mental Health: A Systematic Review,” East African J. Heal. Sci., vol. 6, no. 1, pp. 219–231, 2023.

[28] M. A. Khan, S. Husain, and S. M. Minhaj, “To explore the impact of corporate culture and leadership behaviour on work performance, mental health and job satisfaction of employees: An empirical study,” J. Infrastructure, Policy Dev., vol. 8, no. 11, p. 6417, 2024.

[29] A. P. Sutarto, S. Wardaningsih, and W. H. Putri, “Work from home: Indonesian employees’ mental well-being and productivity during the COVID-19 pandemic,” Int. J. Work. Heal. Manag., vol. 14, no. 4, pp. 386–408, 2021.

[30] R. A. Yamin and E. S. Pusparini, “The Effect of Flexible Work Arrangement and Perceived Organizational Support on Employee Job Performance: The Mediating Role of Employee Engagement,” in 6th Global Conference on Business, Management, and Entrepreneurship (GCBME 2021), Atlantis Press, 2022, pp. 436–441.

Downloads

Published

2026-03-31

How to Cite

The Effect of Flexible Work Arrangements and Mental Health on Employee Productivity at Logistics Startups in Indonesia. (2026). Sustainable Development Insights, 2(01), 39-50. https://doi.org/10.58812/sdi.v2i01.2706