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The Role of Job Satisfaction in the Relationship between Transformational

Leadership, Knowledge Management, Work Environment and Performance
Article in Solid State Technology · February 2021
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Solid State Technology
Volume: 63 Issue: 2s
Publication Year: 2020
The Role of Job Satisfaction in the Relationship

between Transformational Leadership, Knowledge
Management, Work Environment and Performance
Eman Singgih1, Joni Iskandar2, Francisca Sestri Goestjahjanti3, Mochammad Fahlevi4,
Multi Nadeak5, Khaerul Fahmi6, Ridwan Anwar7, Masduki Asbari8, AgusPurwanto9
13
Sekolah TinggiIlmuEkonomiInsan Pembangunan, Indonesia
2,8
STMIK Insan Pembangunan, Indonesia
4
Bina Nusantara University, Indonesia
5
Sekolah TinggiTeknologi Bandung, Indonesia
6
Universitas Pramita Indonesia, Indonesia
7
Universitas Bhayangkara Jakarta Raya, Indonesia
9
Pelita HarapanUniversity,Indonesia
Abstract— To measure the effect of transformational leadership was aimed this study,knowledge
management and work environment on performance of the employee of a packaging industry in Tangerang
which are mediated by job satisfaction. Simple random sampling to 351 population of employees done as
data collection. 221 samples of the questionnaire results werereturned and valid. The SEM method with
SmartPLS 3.0 software is used in data processing. Transformational leadership and knowledge management
do not significantlyinfluenceemployee performance, both directly and indirectly through job satisfaction
mediation are results conclusions of this study. Meanwhile, work environment have a significant effect on
employee performance, both directly and indirectly through mediating job satisfaction. Job satisfaction have
a significant effect on employee performance.A model for building employee performance among the
packaging industry employees was proposed by this new research in Tangerang through enhancing positive
workenvironment and manage implementation of transformational leadership practice and knowledge
management with job satisfaction as a mediator. The way to improve employee readiness in facing the era of
industrial revolution 4.0 could be pave by this research.
Keyword: Authentic leadership, employee engagement, job satisfaction, talent management.
I. INTRODUCTION
The success of the organization in managing existing human resourcesdetermine the survival of an
organization. An important asset for an organization is human resources (Asbari, 2019). In the current era of
knowledge, human resources become a vital part of the organization and become a competitive and
comparative measure of differentiation. Who is able to better manage their human resources, the chance of
winning global competition among business organizations is greater. Organizational performance will be
better and competitive. Because actually, employee performance is employee's actual achievement compared
to the expected performance of the employee (Dessler, 2006). One determinant of employee performance is
the level of job satisfaction. Inevitably, employee performance is also influenced by leadership practices,
knowledge management and work environments. Previous research separately analyzed the effect of
transformational leadership on innovation performance (Waruwu et al., 2020), the effect of transformational
293
leadership on organizational performance (Yanthy et al., 2020), the effect of work environment on employee
performance (Maesaroh et al., 2020) , the influence of knowledge management on performance
Archives Available @ www.solidstatetechnology.us

(Sulistyo&Ayuni, 2018), and the effect of work environment on job satisfaction (Kianto et al., 2016). All of
them concluded that there was a positive influence of transformational leadership, knowledge management
and environment on job satisfaction and employee performance.However, some recent studies show different
or even contradictory results, such as studies (Eliyana et al., 2019; KhalifaElgelal&Noermijati, 2014;
Purwanto &Asbari, 2020; Siswatiningsih et al., 2019) who found that transformational leadership does not
affect performance. Therefore, the authors deem it necessary to analyze more deeply this phenomenon and
attempt to explain how organizations, especially industrial packaging business organizations in Tangerang,
can manage the performance of their employees, through efforts to improve job satisfaction, leadership
practices, implement knowledge management and build a positive work environment.
II. LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT
Transformational Leadership
Transformational leadership theory is refined by (Bass &Avolio, 2000), transformational leadership
theorypreviously based from (Burn, 1978). Trust, loyalty, admiration, and respect among followers, and
between followers and leaders, so that they are willing to volunteer to achieve the organization's goals,
objectives and vision created by transformative leaders. Those who are able to inspire their followers to
change their lives and aspire to greater goals and visions are transformational leaders confirmed by (S. P.
Robbins, 2001). (Luthans, 2005), defining transformative leaders are able to change the awareness of their
followers, increase their enthusiasm, and motivate them to do their best to achieve organizational goals, not
because they are forced to, but they are willing. According to (Bass &Avolio, 2000), there are three
characteristics of transformative leaders, namely: first, to increase follower awareness about the importance
of processes and efforts. Secondly, to motivate followers to prioritize group interests more than individual
interests. Third, to divert the needs of followers beyond material matters to a higher level such as self-esteem
and actualization. People who encourage followers to act for specific goals that represent values and
motivations-wants and needs, aspirations and expectations - leaders and followers are statements from
transformative leaders (Burn, 1978).
III.
KnowledgeManagement
The organizations that we commonly hear are groups of people who work together to achieve common
goals that have been set. Now the organization has changed its business approach from a resource based to a
knowledge based direction. Knowledge Management (KM) as a corporate strategy to innovate. Knowledge
management becomes a means of implementing processes in KM, so it is necessary to analyze extent to
which it affects employee performance. Every process or practice of creating, acquiring, capturing, sharing,
and using knowledge to improve learning and organizational performance is the definition of knowledge
management (Armstrong & Taylor, 2014). What is needed to get the most out of knowledgesources is the
definition of knowledge management. Generally, organizing and providing important knowledge, wherever
and whenever needed is the focus of knowledge management (Becerra - Fernandez &Sabherwal, 2015).
Work Environment
Work environment in a company is one of the important things to consider. Although the work
environment does not produce products directly in a manufacturing industry, the work environment has an
influence on employee performance. Work environment as a condition that includes physical, psychological,
and social aspects that enhance working conditions (Jain & Kaur, 2014). According to Sedarmayati (2011)
the overall tools and materials faced, environment around where a person works, method of work, and
arrangement of work both as individuals and as groups are definitions of the work environment. From some
of definitions above the author can conclude that work environment is a condition and situation around
employees that can affect their work. The work environment includes several types, namely: First, Physical
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Environment is an environment that can cause a person to adjust his compatibility with the place of work.
Physical environment consists of ventilation and temperature, noise, lighting and facilities. Second, Mental
Environment is a condition experienced by someone in the place of work. Mental environment consists of

fatigue, boredom, attitudes and behavior of coworkers. Third, Social Environment is the environment in
which a person interacts with others. The social environment consists of necessary space, cleanliness and
safety (Jain & Kaur, 2014).
Job Satisfaction
Often the assumption that employees who have a high level of satisfaction in an organization will be more
productive and high-performance is a belief that is often used as a basic teaching among managers for many
years. Job satisfaction is an important point in employees who describe a person's feelings towards the work
being undertaken. The behavior in the work environment and outside work environment will reflect these
feelings. (Wexley&Yukl, 1977) defines job satisfaction as a way for employees to feel themselves or their
work, a feeling that supports or does not support in employees related to work or his condition can conclude
as job satisfaction. Robbins & Judge (2001) mentions job satisfaction as a general attitude towards one's
work, the difference between the amount of reward received by workers and amount they are supposed to
receive. A positive or pleasant emotional state that results in the assessment of a job or work experience also
define as job satisfaction (Luthans, 2002). One's feelings for their work is reflected by job satisfaction. The
positive attitude of employees towards work and everything encountered in work environment can see in job
satisfation. (Stephen P. Robbins & Judge, 2008) states that factors that can affect job satisfaction include the
following: mentality challenging, equitable rewards, supportive working, and supportive collegues.
Employee Performance
Performance is the process and work of individuals and groups of organizations over a period of time.
Basically employee performance becomes an individual thing because every employee has different work
results according to their abilities and talents. The success of an organization is very dependent on employee
performance. Organizations need high-performing and high-performing employees. At the same time
employees also need feedback on their performance as a guide for their actions. Employee performance
(work performance) is the employee's actual performance compared to expected performance of the
employee. Expected work performance is standard performance that is compiled as a reference so that it can
see employee performance in accordance with its position compared to standards created (Dessler, 2006).
Performance appraisal as a way to measure the contribution of individuals (employees) to the organization
where they work. The success or failure of performance achieved by an organization, is influenced by the
level of employees performance, both individually and in groups, with assumption that the better performance
of employees, the expected organizational performance will be better (Bernardin&Russel, 1993). Likewise,
employee performance is expressed as something that affects how much they contribute to the organization.
Opinion (Dessler, 2006) states that several indicators in performance appraisal, namely quality, productivity,
knowledge about work, trustworthiness, availability, and freedom.
Relationship between Transformational Leadership and Job Satisfaction

Leadership style has a close relationship with employee job satisfaction. Because one of the factors
creating employee job satisfaction is the existence of a leader who applies his leadership style properly and
appropriately so as to provide job satisfaction for employees (Bernarto et al., 2020; Prameswari et al., 2020).
Employees will feel satisfied and valued by superiors so that employee performance increases (Asbari, 2019;
Asbari, Fayzhall, et al., 2020; Asbari, Purwanto, et al., 2019, 2020; Asbari, Santoso, et al., 2019; Fayzhall ,
Asbari, Purwanto, Goestjahjanti, et al., 2020; Hutagalung et al., 2020; Maesaroh et al., 2020; Nugroho et al.,
2020; Purwanto; et al., 2019; Purwanto, Asbari, & Hadi, 2020b , 2020a; Purwanto, Asbari, Budi Santoso, et
al., 2020a; Purwanto, Asbari, et al., 2019; Purwanto, Asbari, Prameswari, et al., 2020c, 2020b; Purwanto,
Bernarto, Asbari, et al., 2020a, 2020b; Purwanto, Pramono, Asbari, et al., 2020c; Purwanto, Wijayanti, et al.,
2019; Purwanto &Asbari, 2020; Waruwu et al., 2020; Yanthy et al., 2020) and the company's progress will be
more easily achieved (Fayzhall, Asbari, Purwanto, Basuki, et al., 2020; Purwanto, MayestiWijayanti, et al.,
2019). A leadership model for a leader who tends to motivate subordinates to work better and focus on
behavior to help transformation between individuals and organizations is transformational leadership (Bass
&Avolio, 2000). Transformational leadership has a positive and significant influence on job satisfaction are
concluded by some of these studies (Choi et al., 2016; Kheir-Faddul&Dănăiaţă, 2019; Lin et al., 2018).
295
However, no significant relationship between transformational leadership and employee outcomes is a

statement from several other studies (Purwanto, Asbari, & Hadi, 2020b). Based on previous research and
analysis above, the authors follow the first hypothesis as follows:
H1:There is asignificant effect oftransformational leadershipon job satisfaction.
Relationship betweenKnowledgeManagementand Job Satisfaction

The process of employee development cannot be separated from proper knowledge management. An
integrated and harmonious way with knowledge management can improve employee performance and
therefore a knowledge management system is applied. Managing human resources as corporate assets cannot
be separated from managing knowledge. People (resources) are actors of the knowledge management process
that are needed in addition to knowledge sources. In the use of knowledge as innovation, responsiveness of
customers and stakeholders can see the role of knowledge management. The level of employee satisfaction
with the organization where it operates is a good impact of knowledge management in the organization. This
is evident from research (Masa'deh, 2016) that revealed the significant positive impact of Knowledge
Management on job satisfaction. (Kianto et al., 2016) in their research also stated that Knowledge
Management in one's work environment is significantly related to job satisfaction. In his research found that
there is a positive impact and significant relationship between knowledge management on job satisfaction in
the state university sector. Other research results also show that knowledge management has a positive impact
on job satisfaction (Bayasgalan&Gerelkhuu, 2016). Based on previous research and analysis above, the
authors follow the second hypothesis as follows:
H2:There is asignificant effect ofknowledgemanagementon job satisfaction.
Relationship Between Work Environment on Job Satisfaction
Work environment in a company is one of the important things to consider. Elements of work environment
as a system that influences the behavior of individuals in the organization. The physical and non-physical
work environment is highly expected for employees to work optimally. Thus the circumstances surrounding
employees in working as well as possible are considered and maintained so that employees will feel
comfortable in working so as to produce satisfaction in employees. Facilities and infrastructure that support
employee work activities can be employee satisfaction, so that employees feel the Company's attention.
(Nugroho et al., 2020) analyzed the impact of work environment on employee job satisfaction from several
respondents, namely educational institutions, banking sector and telecommunications industry showing a
positive relationship between work environment and employee job satisfaction. Research (Nugroho et al.,
2020) also proves that work environment has a positive and significant direct effect on satisfaction and
performance influenced by leadership and work environment. The work environment has a significant
influence on employee satisfaction (KafuiAgbozo, 2017). Based on previous research and analysis above, the
authors follow the third hypothesis as follows:
H3:There is a siginificant effect of work environment on job satisfaction.
Relationship BetweenTransformational Leadershipand Employee Performance
Transformational leadership style with employee performance is very closely related. Because with high
performance means that every employee provides all the knowledge, skills, abilities, attitudes, and behaviors
that every employee has and awareness that the progress of the company will be quickly achieved. This is
actually the role of the leader to be able to influence so that employee performance is maintained. As a leader,
at any time he has a role to guide and supervise the implementation of tasks assigned to employees.
Transformational leadership is able to provide work motivation, listen to employee aspirations and give
awards to employees so as to improve employee performance if the relationship of leadership style is closely
296
related to employee motivation means that it can be said that leadership style can directly affect employee
performance, that is through increasing employee motivation which then impact on improving employee
performance. Transformational leadership has a significant influence on employee performance (Buil et al.,

2019; Manzoor et al., 2019; Nam & Park, 2019). Other studies have concluded that there is no significant
relationship between transformational leadership and employee performance (Eliyana et al., 2019;
KhalifaElgelal&Noermijati, 2014; Monoyasa et al., 2017; Putri&Soedarsono, 2017). Based on previous
research and analysis above, the authors follow the fourth hypothesis as follows:
H4:There is a siginificant effect oftransformational leadershipon employee performance.
Relationship Between Knowledge Management andEmployee Performance
The role of knowledge management is very important in organizational life in order to improve employee
productivity and competence. Knowledge Management can improve work skills and motivation so as to
encourage improvement in individual and organizational performance. Employee performance will achieve
maximum results if it is supported by its knowledge. (Torabi et al., 2016) showed the significant impact of
Knowledge Management on employee performance. (Al Ahmar et al., 2014) states that there is a positive
relationship between knowledge management and educational organizations. Based on previous research and
analysis above, the authors follow the fifth hypothesis as follows:
H5: There is a significant effect ofknowledge management on employee performance.
Relationship BetweenWork Environmenton Employee Performance
The work environment as a social system that has a strong influence on the formation of individual
behavior in the organization. Work environment in general is divided into physical and non physical. Physical
environment includes a state of noise, spatial planning and equipment. Non-physical environment such as
state status, administrative system, social relations, policy and leadership. An optimal work environment is
able to create harmonious relationships between company members. In his research, (Asbari, 2019) found
two main elements in the workplace namely work environment and work performance have a positive
relationship. (Prameswari et al., 2020) work environment has an impact on employee performance in the
organization. Based on previous research and analysis above, the authors follow the sixth hypothesis as
follows:
H6:There is a siginificant effect ofwork environment on employee performance.
Relationship BetweenJob Satisfactionon Employee Performance
The emotional state of employees who view their work is called job satisfaction. Psychological maturity
will never be achieved by employees who do not get job satisfaction, and in turn will become frustrated. Have
a better attendance and turnover record, are less active in union activities, and perform better than employees
who do not get job satisfaction are usually obtained by employees who get job satisfaction. A positive attitude
towards their work will be showed by employees with high job satisfaction. Employees will focus and be
serious in carrying out their work. This is supported by (Guritno&Prabowo, 2016; Hutagalung et al., 2020;
Ristiana, 2013; Suryadi&Efendi, 2018) who stated that there is a positive relationship between the
dimensions of job satisfaction and employee performance. Based on previous research and analysis above,
the authors follow the seventh hypothesis as follows:
H7:There is a siginificant effect ofjob satisfactionon employee performance.
Relationship BetweenTransformational LeadershipandEmployee Performance through Job

Satisfaction
297
Transformational leadership style with employee performance is very closely related. Because with high
performance means that every employee provides all knowledge, skills, abilities, attitudes, and behaviors that
every employee has and awareness that the progress of the company will be quickly achieved. This is actually

the role of the leader to be able to influence employee job satisfaction, so that employee performance is
maintained. As a leader, at any time he has a role to guide and supervise the implementation of tasks assigned
to his employees. Transformational leadership is able to provide work motivation, listen to employee
aspirations and give awards to employees so as to improve employee performance if the relationship of
leadership style is closely related to employee motivation means that it can be said that leadership style can
affect employee performance indirectly through increased employee motivation which then impact on
improving employee performance. Research (Nugroho et al., 2020) states that there is a mediating effect of
job satisfaction on the relationship between transformational leadership and employee performance. Based on
previous research and analysis above, the authors follow the eighth hypothesis as follows:
H8: There is a significant effect oftransformational leadership on employee performancethrough job

satisfaction.
Relationship Between Knowledge Management andEmployee Performance throughJob Satisfaction
Knowlegde management has become one of the most popular elements in improving employee
performance in organizations. Optimal growth is inevitableso that organizational awareness places knowledge
as a source of organizational encouragement. The Knowledge Management process component has a
significant relationship with job satisfaction and employee performance indicated by (Rahman & Hasan,
2017). Significant positive influence of Knowledge Management and HRM practices on organizational
performance is also shown by research (Rahman & Hasan, 2017) . The results also show that job satisfaction
is a significant mediating variable in the relationship between the influence of knowledge management and
HRM practices on performance. Based on previous research and analysis above, the authors follow the ninth
hypothesis as follows:
H9: There is a significant effect ofknowledge management on employee performancethrough job

satisfaction.
Effect of Work EnvironmentonEmployee PerformancethroughJob Satisfactionas mediation

A conducive work environment makes employee performance better and optimal. A pleasant work
environment may be a key driver for employees to produce peak performance. (Dharmanegara et al., 2016)
stated that there is a relationship between the mediating role of job satisfaction on the relationship between
the influence of work competence and employee performance and the role of job satisfaction mediating on
the relationship of work environment to employee performance. The research proves that there is an indirect
relationship between work environment on employee performance. Based on previous research and analysis
above, the authors follow the tenth hypothesis as follows:
H10:There is a significant effect ofwork environmentonemployee performancethroughjob satisfaction.
Research Conceptual Framework

According to (Sekaran&Bougie, 2003) theoretical framework is the foundation on which all research
projects are based. From a theoretical framework hypotheses can be drawn up that can be tested to find out
whether formulated theory is valid or not. Then, it can be measured using appropriate statistical analysis.
Referring to the theory and previous research, there is a relationship between variables, including
transformational leadership, knowledge management, work environment, job satisfaction and employee
performance. The author constructs the research model as follows:
298

Figure 1. Research Model
IV. METHODS
Operational Definitions of Variables and Indicators

The method used in this research is quantitative method. Data was collected by distributing questionnaires
to 351 permanent industrial automotive industry employees in Indonesia. The instrument used to measure
transformational leadership was adapted from (Bogler, 2001) using 5 items (TL1-TL5). Knowledge
management was adapted from (Becerra - Fernandez &Sabherwal, 2015) using 17 items (KM1-KM17).
Work environment was adapted from (Jain & Kaur, 2014) using 14 items (WE1-WE14). Job satisfaction was
adapted from (S.P. Robbins & Judge, 2001) using 15 items (JS1-JS15). Meanwhile, employee performance
was adapted from (Dessler, 2006) using 15 items (EP1-EP15). For questions / statements about the identity of
respondents designed in the form of a semi-open questionnaire in addition to a closed questionnaire. Five
299
answer options, namely: strongly agree (SS) score 5, agree (S) score 4, neutral (N) score 3, disagree (TS)
score 2, and strongly disagree (STS) score 1is given to each item closed question / statement. PLS and
SmartPLS software version 3.0 are used as amethod for processing data.

Table 1. Variablesand Items
Variables Items Items Description References

Transformational TL1 Himselfas a role model projected by (Bogler, 2001)
Leadership the principal .
TL2 Talent and ability to overcome
decision making are demonstrated
by the principal.
TL3 The collective goal to fulfill the
mission pursued by the principal.
TL4 New challenges and projects
presented by the principal.
TL5 The ability of teachers to face
obstacles is believed by the school
principal.
Knowledge KM1 Employees gain knowledge from (Becerra –
Management work experience Fernandez &
Sabherwal, 2015)
KM2 Employees gain knowledge from
internships that was followed before
work
KM3 Ease of accessing company data for
obtain information
KM4 Job rotation provides new
knowledge for employees
KM5 Employees are included in the
training
KM6 Employees are included in the
workshop
KM7 Employees are included in a
comparative study
KM8 Intranet facilities are available to
obtain information
KM9 Internet facilities are available to get
information
KM10 The existence of intercultural
knowledge sharing the employee
KM11 Leaders share knowledge with
employees
KM12 The organization communicates
new information to employees
KM13 Available social media groups as a
place
exchange information
KM14 Owned knowledge helps employees
in doing
the given task
KM15 Knowledge possessed makes it easy
employee work
KM16 Employee knowledge helps decision
making
300
KM17 Available media to collect new

knowledge acquired by employees

Work Environment WE1 Air circulation rate (Jain & Kaur, 2014)
WE2 Room temperature at work
WE3 Moisture level of the work room
WE4 Lighting levels at work
WE5 Availability of work support
facilities
WE6 The state of interior of the
workspace
WE7 Friendliness between coworkers
WE8 Friendliness of the Chairman
WE9 Support provided by coworkers
WE10 Support provided by the
Chairperson
WE11 Relationships between coworkers
WE12 Workplace cleanliness
WE13 Safety at work
WE14 Comfort at work
Job Satisfaction JS1 Diversity of tasks given (S.P. Robbins &
Judge, 2001)
JS2 The work given provides a
challenge
JS3 Level of freedom in completing
assignments
JS4 Feedback given from the Chairman
JS5 Salary received according to
employee expectations
JS6 Fairness of salary received
JS7 Benefits are as expected the
employee
JS8 Justice promotion policy
JS9 Comfort work environment
JS10 Availability of facilities that support
work
JS11 Ease of using existing facilities
JS12 Work colleague support
JS13 Friendliness of the Chairman
JS14 Pujian yang diberikanPimpinan
JS15 Opportunity to express opinions on
Leader
Employee EP1 Accurancy in working (Dessler, 2006)
Performance
EP2 Ability to meet the targets set
EP3 Success rate of completing work
EP4 Ability to complete work
accordingly work standards
EP5 Timeliness in completing work
EP6 Ability to complete overtime work
EP7 Knowledge of work
EP8 Possession of information to
complete profession
301
EP19 Ability to understand given tasks

EP10 Supervisor trust in employees
EP11 Responsibility for work completed

EP12 Punctuality present
EP13 Punctuality to go home
EP14 Level of attendance
EP15 Accurate use of rest time
Population and Sample

The population in this study were permanent employees of an automotive industry in Indonesia,
amounting to 351 people. The questionnaire was distributed by simple random sampling technique. The
results of the questionnaire returned were 263 (74.93 percent of the population) and valid samples were 221
samples. So 84.03 percent is valid from the number of questionnaires collected.
V. RESULTS AND DISCUSSION

Sample Description
Table 1. Sample Descriptive Information
Amoun
Criteria %
t
Age (per Oktober 2019) < 30 years 56 25.41%
30 - 40 years 103 46.60%
> 40 years 62 27.99%
Working period as a < 5 years 79 35.66%
permanent employee 5-10 years 107 48.52%
> 10 years 35 15.82%
Highest diploma ≥ Bachelor 37 16.60%
Deg.
= Sehior High 174 78.73%
Sch.
<Sehior High 10 4.44%
Sch.
Test Results Validity and Reliability of Research Indicators

Convergent validity testing, discriminant validity is the testing phase of measurement model. Meanwhile,
to test construct reliability, Cronbach's alpha and composite reliability are used. Research hypothesis testing
is conducted if all indicators in PLS model have met the requirements of convergent validity, discriminant
validity and reliability testing can use the results of PLS analysis.
ConvergentValidity Testing
By looking at the loading factor value of each indicator for the construct a convergent validity test is
performed.Latent constructs are explained in most references, by looking at a factor weight of 0.5 or more
considered to have sufficiently strong validation (Chin, 1998; Ghozali, 2014; Hair et al., 2010). AVE value of
each construct> 0.5 is a requirement in this study with a minimum limit of loading factor size accepted is 0.5
(Ghozali, 2014). All indicators already have a loading factor value above 0.5 based on SmartPLS 3.0
processing results. So, the convergent validity of this research model has fulfilled the requirements. Table 2
shows the load value, cronbach's alpha, composite reliability and AVE each complete construct:
302

Figure 1. Research Model (Fit)
Table 2. Items Loadings, Cronbach’s Alpha, Composite Reliability, and Average Variance
Extracted (AVE)
Cronbach’s Composite
Variables Items Loadings AVE
Alpha Reliability
Transformational TL3 0.885 0.801 0.908 0.831
Leadership TL4 0.937
(TL)
Knowledge Management KM10 0.720 0.850 0.886 0.526
(KM) KM11 0.682
KM12 0.732
KM14 0.785
KM15 0.734
KM16 0.715
KM17 0.704
Work Environment WE1 0.645 0.891 0.911 0.506
(WE) WE10 0.750
WE11 0.771
WE12 0.738
303
WE13 0.724
WE14 0.742
WE6 0.611

WE7 0.689
WE8 0.684
WE9 0.744
Job Satisfaction JS11 0.655 0.895 0.914 0.515
(JS) JS12 0.698
JS13 0.740
JS14 0.715
JS15 0.743
JS4 0.673
JS5 0.718
JS6 0.782
JS7 0.740
JS8 0.708
Employee Performance EP1 0.708 0.907 0.922 0.519
(EP) EP10 0.648
EP11 0.718
EP2 0.752
EP3 0.765
EP4 0.798
EP5 0.790
EP6 0.660
EP7 0.701
EP8 0.667
EP9 0.702
Discriminant Validity Testing
To ensure that each concept of each latent variable is different from other latent variablesdiscriminant
validity is performed. If the AVE squared value of each exogenous construct (value on the diagonal) exceeds
the correlation between the construct and other construct (values below the diagonal) indicated that the model
has good discriminant validity (Ghozali, 2014). AVE squared values are used to determine the results of
discriminant validity testing, namely by looking at the Fornell-Larcker Criterion Value (Fornell&Larcker,
1981b), obtained as follows:
Table 3. Discriminant Validity

Variables EP JS KM TL WE
Employee Performance 0.721

Job Satisfaction 0.532 0.718
Knowledge
0.387 0.389 0.725
Management
Transformational
0.107 0.029 0.050 0.912
Leadership
Work Environment 0.534 0.649 0.465 0.011 0.711
304
Table4. Collinearity Statistics (VIF)

Variables EP JS
Employee Performance (EP)

Job Satisfaction (JS) 1.759
Knowledge Management
1.301 1.280
(KM)
Transformational Leadership
1.003 1.003
(TL)
Work Environment (WE) 1.905 1.277
All constructs have AVE square root values above the correlation value with other latent constructs
(through the Fornell-Larcker criteria) indicated by the results of discriminant validity test in table 3 above.
Likewise, the cross-loading value of all items from one indicator is greater than the other indicator items as
mentioned in Table 4, so it can be concluded that the model has met discriminant validity (Fornell&Larcker,
1981a).
Next, colinearity evaluation is carried out to find out whether there is colinearity in the model. To find
collinearity, VIF calculation is needed for each construct. The model has collinearity if the VIF score is
higher than 5 (Hair et al., 2014). Table 4 shows all VIF scores are less than 5, meaning that this model does
not have collinearity.
Construction Reliability Testing

The value of Cronbach's alpha and composite reliability of each construct can assess construct reliability.
The reliability of composite and recommended Cronbach's alpha value are more than 0.7 (Ghozali, 2014). All
constructs have composite reliability and Cronbach's alpha value greater than 0.7 (> 0.7) is indicated by the
reliability test results in table 2 above. In conclusion, the required reliability has been met by all
constructions.
Hyphotesis Test
The inner model test is the designation of hypothesis testing in PLS. This test includes a test of the
significance of direct and indirect effects and measurement of the influence magnitude of exogenous on
endogenous variables. To determine the effect of knowledge management, transformational leadership and
work environment on job satisfaction and employee performance, as well as the effect of job performance
mediation on the relationships between all of the variables of this study, it requires a direct and indirect effect
test. SmartPLS 3.0 software is used to test the influence of using t-statistic test in the most squaredpartial
analysis model(PLS). The table below obtained the R Square values and significance value of the test, with
boothstrapping technique:
Table 5. R SquareValue
R Square R Square Adjusted

Employee Performance 0.368 0.353
(EP)
Job Satisfaction (JS) 0.431 0.421
305
Table 6. Hypotheses Testing

Hypotheses Relationship Beta SE T Statistics P-Values Decision
H1 TL ->JS 0.017 0.053 0.311 0.756 Not
Supported
H2 KM ->JS 0.110 0.070 1.570 0.117 Not
Supported
H3 WE -> JS 0.598 0.063 9.439 0.000 Supported
H4 TL ->EP 0.089 0.067 1.316 0.189 Not

Supported
H5 KM ->EP 0.139 0.099 1.404 0.161 Not
Supported
H6 WE ->EP 0.277 0.110 2.509 0.012 Supported
H7 JS ->EP 0.296 0.094 3.133 0.002 Supported
H8 TL ->JS ->EP 0.005 0.018 0.280 0.780 Not

Supported
H9 KM -> JS ->EP 0.033 0.024 1.363 0.173 Not
Supported
H10 WE ->JS ->EP 0.117 0.061 2.908 0.004 Supported
Based on Table 5 above, the value of R Square job satisfaction (JS) is 0.431, which means that variable
job satisfaction (JS) variable can be explained by knowledge management (KM), transformational leadership
(TL) and work environment (WE) variables of 43.1%, while remaining 56.9% is explained by other variables
not discussed in this study. The value of R Square employee performance (EP) is 0.368 which means that
employee performance variable (EP) can be explained by the variables of knowledge management (KM),
transformational leadership (TL), work environment (WE) and job satisfaction (JS) variables of 36.8% while
remaining 63.2% is explained by other variables not discussed in this study. T Statistics and P-Values which
show the influence between research variables mentioned are shown in table 6.
VI. DISCUSSION
In the first hypothesis, test results show the value of t-statistics 0.311 and p-values of 0.756. Based on the
above calculation, t-statistics value is 0.311 <1.96 and p-value is 0.756> 0.05 so H1 is rejected. Therefore, it
concludes that there is no significant effect of transformational leadership on job satisfaction. The conclusion
of this study is different from the results of the study (Al-edenat, 2018; Cansoy, 2018; Sun & Xia, 2018) but
in accordance with the results of other studies, which states that there is no significant relationship between
transformational leadership and employee outcomes (Purwanto, Asbari, & Hadi, 2020b).
In the second hypothesis, test results show the value of t-statistics 1.570 and p-values of 0.117. Based on
the above calculation, t-statistics value is 1.570 <1.96 and p-value is 0.117> 0.05 so H2 is rejected. Therefore,
it can be concluded that there is no significant influence of knowledge management on job satisfaction. The
306
conclusion of this study is different from what was found in previous studies, namely the results of the study
(Bayasgalan&Gerelkhuu, 2016; Masa'deh, 2016).

In the third hypothesis, test results show the magnitude of t-statistics 9,439 and p-values of 0,000. Based
on the above calculation t-statistics 9,439> 1.96 and p-values 0,000 <0.05 so that H3 is accepted. Therefore, it
can be concluded that there is a significant influence of the work environment on job satisfaction. The
conclusion of this study is consistent with what was found in previous studies, namely Agbozo, et.al (2017)
which concluded that work environment has a significant influence on employee satisfaction. Research from
AbuAlRub, et.al (2016) also states the results of a strong positive relationship between job satisfaction and
work environment for nurses in hospitals.
In the fourth hypothesis, test results show the value of t-statistics 1.316 and p-values of 0.189. Based on
it can be concluded that there is no significant effect of transformational leadership on employee
performance. The conclusions of this study are consistent with what was found in previous studies, namely
the results of the study (David et al., 2017; Eliyana et al., 2019; KhalifaElgelal&Noermijati, 2014; Makena,
2017; Monoyasa et al., 2017; Putri&Soedarsono, 2017; Siswatiningsih et al., 2019). Although different from
other studies (Buil et al., 2019; Manzoor et al., 2019; Nam & Park, 2019).
In the fifth hypothesis, test results show the value of t-statistics 1.404 and p-values of 0.161. Based on the
can be concluded that there is no significant influence of knowledge management on employee performance.
The conclusion of this study is different from what was found in previous studies, namely the results of
research by Torabi, Kyani, &Falakinia (2016) and Ahmar, et.al (2014).
In the sixth hypothesis, test results show the value of t-statistics 2.509 and p-values of 0.012. Based on the
above calculation, t-statistics value is 2.509> 1.96 and p-value is 0.012 <0.05 so that H6 is accepted.
Therefore, it can be concluded that there is a significant influence of work environment on employee
performance. The conclusion of this study is in line with what was found in previous studies, namely the
results of the study (Nugroho et al., 2020).
In the seventh hypothesis, test results show the value of t-statistics 3.133 and p-values of 0.002. Based on
the above calculation, t-statistics value 3.133> 1.96 and p-value value 0.002 <0.05 so that H7 is accepted.
Therefore, it can be concluded that there is a significant influence of job satisfaction on employee
performance. The conclusion of this study is in line with what was found in previous studies, namely the
results of the study (Asbari, Bernarto, et al., 2020; Imelda et al., 2020).
In the eighth hypothesis, test results show the value of t-statistics 0.280 and p-values of 0.780. Based on
it can be concluded that there is no influence of job satisfaction moderation on the relationship between
transformational leadership and employee performance. The conclusion of this study is different from what
was found in previous studies, namely the results of the study (Nugroho et al., 2020).
In the ninth hypothesis, test results show the value of t-statistics 1.363 and p-values of 0.173. Based on the
can be concluded that there is no influence of job satisfaction moderation on the relationship between
knowledge management and employee performance. The conclusion of this study is different from what was
found in previous studies, namely the results of the study of Khanal&Poudel (2017), Rahman & Hasan
(2017).
In the ninth hypothesis, test results show the value of t-statistics 1.363 and p-values of 0.173. Based on the
can be concluded that there is no influence of job satisfaction moderation on the relationship between
knowledge management and employee performance. The conclusion of this study is different from what was
307
found in previous studies, namely the results of the study of Khanal&Poudel (2017), Rahman & Hasan
(2017).

VII. CONCLUSIONS AND SUGGESTIONS
1.1.Conclusions
Based on the results of data analysis through a questionnaire distributed to respondents, we found several
conclusions as follows: First, transformational leadership and knowledge management have no significant
effect on employee performance, both directly and indirectly through mediating job satisfaction. Second, a
significant effect on employee performance, both directly and indirectly through mediating job satisfaction
possessed by the work environtment. Third, employee performance is influenced positively and significantly
by the job satisfaction. Fourth, job satisfaction does not mediate the relationship between transformational
leadership and employee performance. Likewise job satisfaction does not mediate the relationship between
knowledge management and employee performance. Fourth, job satisfaction influences mediating the
relationship between work environment and employee performance.
1.2.Suggestions
Related to the positive effect of work environment on employee performance, both directly and indirectly
through job satisfaction mediation, management needs to maintain and improve employee job satisfaction by
improving positive work environment. Company management also needs to be creative to create situations
and conditions that encourage employees to feel job satisfaction, so that in turn, employees have the best
performance. Regarding transformational leadership and knowledge management practices, management
needs to evaluate its effectiveness so that it has a positive impact on job satisfaction and employee
performance in the future.
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The Role of Job Satisfaction in the Relationship between Transformational

Article in Solid State Technology · February 2021

Mochammad Fahlevi Khaerul Fahmi

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The Role of Job Satisfaction in the Relationship

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II. LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT

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Relationship between Transformational Leadership and Job Satisfaction

However, no significant relationship between transformational leadership and employee outcomes is a

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H1:There is asignificant effect oftransformational leadershipon job satisfaction.

Relationship betweenKnowledgeManagementand Job Satisfaction

H2:There is asignificant effect ofknowledgemanagementon job satisfaction.

Relationship Between Work Environment on Job Satisfaction

H3:There is a siginificant effect of work environment on job satisfaction.

Relationship BetweenTransformational Leadershipand Employee Performance

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H4:There is a siginificant effect oftransformational leadershipon employee performance.

Relationship Between Knowledge Management andEmployee Performance

H5: There is a significant effect ofknowledge management on employee performance.

Relationship BetweenWork Environmenton Employee Performance

H6:There is a siginificant effect ofwork environment on employee performance.

Relationship BetweenJob Satisfactionon Employee Performance

H7:There is a siginificant effect ofjob satisfactionon employee performance.

Relationship BetweenTransformational LeadershipandEmployee Performance through Job

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H8: There is a significant effect oftransformational leadership on employee performancethrough job

Relationship Between Knowledge Management andEmployee Performance throughJob Satisfaction

H9: There is a significant effect ofknowledge management on employee performancethrough job

Effect of Work EnvironmentonEmployee PerformancethroughJob Satisfactionas mediation

H10:There is a significant effect ofwork environmentonemployee performancethroughjob satisfaction.

Research Conceptual Framework

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Figure 1. Research Model

Operational Definitions of Variables and Indicators

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Variables Items Items Description References

KM17 Available media to collect new

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EP19 Ability to understand given tasks

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Population and Sample

V. RESULTS AND DISCUSSION

Table 1. Sample Descriptive Information

Test Results Validity and Reliability of Research Indicators

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Figure 1. Research Model (Fit)

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Discriminant Validity Testing

Table 3. Discriminant Validity

Employee Performance 0.721

Table4. Collinearity Statistics (VIF)

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Employee Performance (EP)

Construction Reliability Testing

R Square R Square Adjusted

Table 6. Hypotheses Testing

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H4 TL ->EP 0.089 0.067 1.316 0.189 Not