Industrial Engineering Optimization of Trust-Based Industrial Relations in Beverage Manufacturing Using PLS-SEM
DOI:
https://doi.org/10.32492/nucleus.v5i2.5213%20Keywords:
Industrial Engineering, Trust-Based Industrial, Beverage Manufacturing, PLS-SEM, Manufacturing StabilityAbstract
Industrial engineering optimization in manufacturing increasingly requires not only technical process control but also stable socio-technical relations among management, employees, labor unions, and regulatory institutions. This study develops and tests a trust-based industrial relations optimization model for beverage manufacturing using Partial Least Squares Structural Equation Modeling (PLS-SEM). The model examines how management practices, labor unions, government role, and organizational culture influence industrial relations through employee trust. Survey data were collected from 300 employees of beverage manufacturing companies and analyzed through measurement-model and structural-model assessment. The results show that government role (β = 0.328, p = 0.002) and organizational culture (β = 0.347, p = 0.001) significantly increase trust, while trust strongly improves industrial relations (β = 0.770, p < 0.001). The direct effects of management practices, labor unions, government role, and organizational culture on industrial relations are not statistically significant, indicating that these antecedents operate mainly through trust. Mediation analysis confirms that trust significantly mediates the effects of government role (β = 0.252, p = 0.002) and organizational culture (β = 0.267, p = 0.001) on industrial relations. The structural model explains 76.5% of the variance in industrial relations. The findings contribute to industrial engineering by positioning trust as a socio-technical optimization mechanism that converts institutional credibility and organizational culture into cooperative, stable, and conflict-resilient manufacturing relations
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