HOW LEADERSHIP SHAPES EMPLOYEE PERFORMANCE: THE MEDIATING ROLE OF ORGANIZATIONAL CULTURE

Setyaasih; Ratna Agustina; Harjo Lukito; Anna Kridaningsih; Nurus Sabani

doi:10.61677/count.v4i2.1115

Authors

Setyaasih Management Study Program, Faculty of Economics, Mayjen Sungkono University Mojokerto
Ratna Agustina Management Study Program, Faculty of Economics, Mayjen Sungkono University Mojokerto
Harjo Lukito Management Study Program, Faculty of Economics, Mayjen Sungkono University Mojokerto
Anna Kridaningsih Management Study Program, Faculty of Economics, Mayjen Sungkono University Mojokerto
Nurus Sabani Management Study Program, Faculty of Economics, Mayjen Sungkono University Mojokerto

DOI:

https://doi.org/10.61677/count.v4i2.1115

Keywords:

Transformational leadership, strategic leadership, change leadership, organizational culture, employee performance.

Abstract

Leadership is an important factor in employee performance, but different leadership approaches may influence performance through different organizational mechanisms. This study examines the effects of transformational leadership, strategic leadership, and change leadership on employee performance, with organizational culture as a mediating variable in manufacturing companies in Sidoarjo and Pasuruan, Indonesia. A quantitative multisite survey was conducted using questionnaire data from 300 employees, and the relationships were analyzed using partial least squares structural equation modeling (PLS-SEM). The results show that transformational leadership (β = 0.330, p < 0.001), strategic leadership (β = 0.322, p < 0.001), and change leadership (β = 0.191, p = 0.016) have positive direct relationships with employee performance. Transformational leadership (β = 0.291, p < 0.001) and strategic leadership (β = 0.276, p = 0.005) are also positively related to organizational culture, whereas change leadership has no significant relationship with culture (β = 0.028, p = 0.765). Organizational culture mediates the relationships of transformational leadership (indirect β = 0.094, p = 0.002) and strategic leadership (indirect β = 0.089, p = 0.010) with employee performance, but not that of change leadership (indirect β = 0.009, p = 0.771). The model explains 63.2% of the variance in employee performance. The main contribution is the demonstration that organizational culture plays different mediating roles across leadership dimensions. These findings suggest that managers should combine leadership development with efforts to strengthen shared values, collaboration, and learning, while maintaining direct support for change implementation.

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