Investigate the Impact of Inclusive Leadership and Organisational Transparency on Employee Engagement: a Mediating Role of Internal Communication Effectiveness

Yeow, Vivian (2025) Investigate the Impact of Inclusive Leadership and Organisational Transparency on Employee Engagement: a Mediating Role of Internal Communication Effectiveness. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

In today’s dynamic work environment, a key challenge for organisations is to sustain high levels of Employee Engagement, which is closely linked to leadership behaviour and communication practices. This study aims to investigate the impacts of Inclusive Leadership and Organisational Transparency on Employee Engagement, with a specific focus on the mediating role of Internal Communication Effectiveness. The study is grounded in three key theoretical frameworks: the Four-Level Employee Engagement Model, Self-Concept Theory, and Stakeholder Theory, which collectively support the examination of leadership, communication, and employee outcomes. To achieve the research objectives, a total of seven hypotheses and three research questions were developed. A quantitative research approach was adopted, using convenience sampling to collect data from 200 full-time employees currently working in various sectors across Malaysia. The data were analysed using SPSS Version 30 and Hayes's PROCESS Macro (Model 4) to perform reliability analysis, normality analysis, descriptive analysis, Pearson correlation analysis, multiple regression analysis, and mediation analysis. The findings revealed that Inclusive Leadership and Organisational Transparency both have significant and positive impacts on Employee Engagement. Furthermore, Internal Communication Effectiveness was found to significantly mediate these relationships. The results confirm that effective leadership and transparent organisational communication, when supported by robust internal communication, play critical roles in fostering Employee Engagement. This study contributes to the growing literature on leadership and engagement, offering practical insights for employers, HR practitioners, and policy-makers seeking to enhance workplace engagement strategies. The limitations of the study are acknowledged, and recommendations for future research are proposed to further validate and expand upon the current findings. Keywords: Inclusive Leadership, Organisational Transparency, Internal Communication Effectiveness, Employee Engagement, Self-Concept Theory, Stakeholder Theory, Four-Level Engagement Model