The Influence of Transformational Leadership and Transactional Leadership on Employee Performance Mediated by Work Culture

Ahmad Syifa; Sasi Utami; Eny Sustiatik

Authors

Ahmad Syifa a:1:{s:5:"en_US";s:29:"Universitas Kadiri, Indonesia";}
Sasi Utami Universitas Kadiri, Indonesia
Eny Sustiatik Universitas Kadiri, Indonesia

Keywords:

Transformational Leadership, Transactional Leadership, Employee Performance, Work Culture

Abstract

This study aims to analyze the influence of transformational leadership (X1) and transactional leadership (X2) on work culture (Z) and employee performance (Y), as well as the impact of work culture on employee performance. Data collection was conducted through observations and questionnaires. The research employed a quantitative approach, focusing on parameter estimation, hypothesis testing, confidence intervals, and relationships between variables with a known normal distribution. Structural Equation Modeling (SEM) with AMOS software was used for analysis. The findings reveal that transformational leadership does not significantly influence work culture, leading to the rejection of hypothesis 1 (H1), while transactional leadership significantly affects work culture, supporting hypothesis 2 (H2). Furthermore, both transformational and transactional leadership styles do not significantly impact employee performance, resulting in the rejection of hypotheses 3 (H3) and 4 (H4). However, work culture significantly influences employee performance, leading to the acceptance of hypothesis 5 (H5). These findings indicate that leadership style alone may not directly improve employee performance, but a strong work culture plays a crucial role in enhancing performance outcomes. Organizations should focus on cultivating a positive work culture to drive employee effectiveness and productivity. Strengthening work culture through well-defined values, teamwork, and motivation may serve as a critical strategy for improving overall organizational performance.

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