Employee engagement in homeworking ecosystem

Remote working is becoming a new trend affecting most employees since the COVID-19 pandemic. Employee engagement (EE) studies in the context of remote working are emerging but remain inconclusive. Building on the social exchange theory (SET), this study aims to examine the effect of e-leadership on EE, considering virtual communication as a mediator and shared understanding as a moderator. A total of 257 valid samples were collected online from employees of Malaysian organizations using snowball sampling. The data were analyzed using structural equation modeling tests: confirmatory factor model, correlation analysis, path analysis, bootstrapping analysis and multi-group confirmatory factor analysis. The findings show the positive relationships between e-leadership and virtual communication and virtual communication and EE. Further, e-leadership directly affects EE and indirectly through virtual communication. The moderating role of shared understanding to strengthen or weaken the virtual communication–EE relationship is also supported. This study suggests that organizations wishing to foster EE in the remote working environment can cultivate e-leadership to facilitate virtual communication for higher EE. Furthermore, a shared understanding alongside e-leadership enhances the role of virtual communication in shaping EE. This study enriches the EE literature by offering insights into how e-leadership, virtual communication and shared understanding influence EE based on the employer–employee relationship in remote working, which has been widely practiced since the COVID-19 pandemic and shall remain valid in the post-pandemic era.