Professional Documents
Culture Documents
Transformasional Leadership
Transformasional Leadership
JOURNAL OF LEADERSHIP
IN ORGANIZATIONS
Journal homepage: https://jurnal.ugm.ac.id/leadership
* Corresponding Author at Department of Business, Faculty of Administrative Science, Universitas Subang, Jalan
RA Kartini KM. 3, Pasirkareumbi, Kec. Subang, Jawa Barat 41285, Indonesia.
E-mail address: abumuna742@gmail.com, suherlanfia@gmail.com, tepypei@gmail.com,
zaenal_hirawan@yahoo.com
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Ausat et al. Journal of Leadership in Organizations Vol.4, No. 4 (2022) 61-82
leader is aware of each individual's unique measured (N. J. Allen & Meyer, 1993). The
demands by paying close attention to first is normative commitment, which is
subordinates and treating them with respect based on employee values. The second type
(Reza, 2019). Fourth, activities that foster is continuing commitment, which occurs
rethinking of formal habits and spark new when employees stay with a company
ideas are referred to as intellectual because they don't want to leave or because
stimulation (Sikalieh, 2017). In other words, they require further benefits and
it defies prior customs or has reservations compensation. The final type of commitment
about their subordinates' seeming new visual is affective commitment, which happens
style of thinking (Kim & Kim, 2014). when employees want to be a part of a
company because of an emotional
2.2. Organizational Commitment connection. Employees have taken
ownership of their commitment to the
The degree to which an employee
organization because they understand that
believes in and accepts the organization's
remaining a member is a requirement
aims and wishes to remain with it is referred
(Suharto et al., 2019).
to as organizational commitment (Ghazzawi,
2019). With a leader's commitment, he will
have a devoted attitude and a strong desire 2.3. Work Performance
to fulfill the organization's objectives. The stage of accomplishment in finishing
Organizational commitment may also be a task is referred to as performance (Eliyana
defined as a person's level of involvement in et al., 2019). This suggests that work
his or her organization and desire to stay a performance is a stage of achievement for an
member, which includes a sense of loyalty individual working for the company. Three
and a willingness to perform to the best of primary elements greatly influence work
one's ability for the organization in which performance in an organization:
one works (Hadi & Tentama, 2020). High organizational support, managerial skill or
commitment causes a person to be more efficacy, and the work performance of each
worried about the organization than his or individual working in the organization,
her own personal interests, and to strive to where each unit in an organization includes
improve the organization (Mete & Bıyık, numerous divisions, each with several
2016). When there is a lack of organizational individuals (Simanjuntak, 2011). Work and
commitment, people will behave in their own its accomplishments, as well as what to do
best interests (Wuryani, 2013). Identification and how to execute it, are all part of
with organizational goals, sentiments of performance (Rivai et al., 2008). Another
involvement in organizational work, and definition of job performance is an
feelings of loyalty to the organization are all employee's capacity to carry out activities
aspects of organizational commitment that contribute to the organization's technical
(Harmen et al., 2020). The task that he is core development (Santos et al., 2018).
responsible for is viewed as a personal Quality of work, quantity of work,
interest, and he wishes to always be devoted timeliness, work effectiveness, and
to the organization's betterment (Masud & contribution to the organization are all
Daud, 2019). The three dimensions of markers of employee work performance
organizational commitment can then be (Maryani et al., 2021). As a result, the
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Ausat et al. Journal of Leadership in Organizations Vol.4, No. 4 (2022) 61-82
stronger the leader's support and job in academia (Ng, 2017). Examining the
motivation, the better the employee's leadership style used in the organization is
performance. an important factor to consider when
maximizing employee work performance.
2.4. Hypothesis Development Leadership plays an essential function in a
In order to answer the research topic, this business, particularly in enhancing the
study used four hypotheses. These are the participation of employees and coordinating
hypothesis: efforts to solve challenges (Muhammad &
1. The Effect of Transformational Sari, 2021). Employee work performance is
Leadership on Organizational Commitment affected by transformational leadership style
Transformational leadership is thought to (Muthuveloo et al., 2014). The key
have an impact on organizational determinant in increasing the performance of
commitment and is a key predictor of MSME employees was determined to be
increased commitment (Senjaya & Anindita, transformational leadership style (Prahesti et
2020). Leaders that use a transformational al., 2017). These findings suggest that the
leadership style will pay attention to and influence of transformational leadership
respect their subordinates, making them feel style might result in more fundamental
like valuable assets to the company, and changes in MSME employees, such as
eventually increasing their devotion to the increased self-confidence, changes in values,
company (McLaggan et al., 2013). They will goals, and needs (Kurniyati, 2018). As a
also feel appreciated for their work, which result, the effect of transformational
will encourage them to continue with the leadership style can help MSME employees
organization. Several prior research have better their performance and contribute
found a link between transformational positively to the organization or corporation
leadership and organizational commitment (Ikhram W & Fuadiputra, 2021). Leadership
(G. W. Allen et al., 2017); (Pratama et al., in an organization can help to create a
2020). The better the transformational positive work environment and boost staff
leadership style is applied to a SME leader, productivity (R. Akbar et al., 2016). The belief
the more committed the employee is to the that leadership is defined as an individual's
organization (Pratama & Mujiati, 2019); ability to influence, encourage, and motivate
(Perawati & Badera, 2018). At Dinas Koperasi others to contribute to an organization's
dan UKM Provinsi Bali, transformational effectiveness and success (Buble et al., 2014).
leadership improves organizational According to current research,
commitment (Pratama & Mujiati, 2019). transformational leadership is well suited for
We suggest the following first hypothesis use in a dynamic business that is always
based on the prior explanation. changing with the times since it has a positive
Hypotheses 1: Transformational leadership has impact on employee happiness and can later
a positive and significant effect on organizational explain an organization's direction and
commitment. mission (Prabowo et al., 2018). We propose
2. The Effect of Transformational the following second hypothesis based on the
Leadership on Work Performance preceding explanation.
The link between leadership and Hypotheses 2: Transformational leadership has
organizational performance is still a hot topic a positive and significant effect on work
performance.
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Ausat et al. Journal of Leadership in Organizations Vol.4, No. 4 (2022) 61-82
3. The Effect of Organizational effort that has been made and the
Commitment on Work Performance achievement of MSME performance in the
A person's effectiveness in the workplace workplace (Widyawati & Yudantara, 2020).
can be improved by their commitment to a Commitment can be viewed as an
successful organization (Khan, 2010). The assessment within the company, indicating
degree to which individuals adopt the whether or not someone is thinking about
organization's values and goals and identify and acting on behalf of his company. When
with them in carrying out their work MSME actors have organizational
obligations is referred to as organizational commitment, business actors will always try
commitment (Mohammed & Eleswed, 2013). their hardest to maintain and develop their
Employees that have a strong belief in the business so that they can compete with other
organization's values and aims, are willing to businesses (Irawan, 2020). Organizational
put in a lot of effort on behalf of the commitment has the potential to provide a
organization, and have a strong desire to stay strong impetus for business actors and to
a member of the organization can be create a favorable environment for business
motivated to work more (Suharto et al., performance (Dhea, 2016). As a result, the
2019). The accomplishments and outputs of high performance of MSME businesses is the
employees acknowledged by their result of strong organizational commitment.
employers and characterized by abilities, We offer the following third hypothesis
efforts, and the nature of working conditions based on the findings of the previous
are a combination expressed as a investigation.
representative part of work performance Hypotheses 3: Organizational commitment has
(Ling & Bhatti, 2014). Employees with a a positive and significant effect on work
strong commitment to the organization and a performance.
psychological tie to the organization will 4. The Effect of Transformational
produce good work results (Musabah et al., Leadership on Work Performance Through
2017). Organizational commitment refers to Organizational Commitment
social actors' readiness to put forth effort and There is a link between transformational
loyalty in support of the social structure leadership and organizational commitment,
(Lapointe & Vandenberghe, 2015). according to previous research.
Attachment to the personality system of Transformational leadership style has a
social contacts can be a form of self- positive and significant impact on
expression that can boost employee morale organizational commitment (Raveendran &
and behavior, allowing them to operate more Gamage, 2019). Leadership style influences
efficiently and effectively (Jayaweera, 2015). organizational commitment, which
Work performance is regarded as a key influences employee work performance and
metric in organizations, and it is recognized mediates the relationship between
as a profession dedicated to finding new leadership style and performance (Ennis et
ways to advance the company (Aboazoum et al., 2018). Organizational commitment
al., 2015). Furthermore, commitment is partially mediates the association between
essential for MSME actors in order to achieve leadership style and work performance (Yeh
expected performance. In theory, & Hong, 2012). Organizational commitment
commitment as a performance appraisal is can greatly mediate the relationship between
required to demonstrate the high level of transformational leadership and work
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Ausat et al. Journal of Leadership in Organizations Vol.4, No. 4 (2022) 61-82
performance (Donkor et al., 2021). In the Purposive sampling was also utilized, with
Gianyar Regency of Bali, organizational specific criteria such as company scale/size,
commitment was found to be a mediating assets, turnover, and employee count, as
variable between transformational indicated in table 1. Businesses that have
leadership and MSMEs' work performance been in existence for more than 5 years and
(Mahkota, 2017). According to the findings, organizational leaders that have
greater transformational leadership has a implemented a transformational leadership
direct impact on better employee style must meet the following criteria. The
performance or can strengthen employee unit of analysis/object of research, namely
organizational commitment, which can lead SMEs in the food and beverage sector in the
to better and quality employee performance Karawang Regency area, was given an online
in MSMEs. The fourth hypothesis is as questionnaire in the form of a Likert scale (1
follows, based on the findings of the strongly disagree - 5 strongly agree). An
preceding research. SMEs employee representing each selected
Hypotheses 4: Organizational commitment SMEs was provided and filled out the online
mediated the effect of Transformational leadership questionnaire. From October 2021 to
on work performance. December 2021, we received 47 responses
Corresponding to the above hypotheses, the using our Google form. After filtering,
research model is shown in figure bellows: however, 13 had to be eliminated since they
did not match the requirements. As a result,
this study used 34 respondents as samples.
The demographics of the survey respondents
are summarized in Table 3. The PLs-SEM
(Partial Least Squares-Structural Equation
Model) statistical technique, which was
helped by SmartPL 3.2.9 software, was used
to assess the data and hypotheses presented
in this study. There are two types of
correlations in the PLs-SEM analysis: the
Figure 1. Research Model outer model, which includes testing
convergent validity, discriminant validity,
3. Method, Data, and Analysis and reliability; and the inner model, which
includes testing convergent validity,
discriminant validity, and reliability. R-
This research is quantitative in that it gathers
data numerically and statistically in order to square, Q-square, and hypothesis testing for
the inner model are also evaluated.
meet scientific standards such as concrete or
empirical, objective, quantifiable, rational, In Karawang, 19 of the 43
respondents are small businesses, while the
and methodical (Igwenagu, 2016).
Organizational commitment and job remaining 15 are medium firms, as shown in
Table 3. Meanwhile, there were 21 male
performance are endogenous variables in
respondents and 13 female respondents out
this study, while transformational leadership
is an exogenous variable. Table 2 shows the of a total of 43. As a result of these data, it
may be stated that men have contributed the
research variables that were measured.
most to the study's success. Furthermore,
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Ausat et al. Journal of Leadership in Organizations Vol.4, No. 4 (2022) 61-82
based on the age of business, 17 respondents variable with reflected indications is said to
are between the ages of 11 and 15, and they have passed the test (Hair et al., 2011). Table
are the primary contributors to this research. 4 shows the reliability test results, which
Furthermore, respondents (representative show that all Cronbach's Alpha and
employees) claimed that they have Reliability values exceed 0.70, indicating that
transformational leadership standards and all research constructs are considered
that they have been implemented based on reliable.
their acknowledgement of the
transformational leadership style of SMEs 4.2. Inner Model
owners/leaders in the firms where they
Testing the inner model is the next step in the
work.
PLs-SEM analysis, and it is demonstrated in
this study using R-square, Q-square, and
4. Result and Discussion hypothesis testing.
4.1. Outer Model 1. R-Square
Testing the outer model is the first step in the To determine the contribution of construct
PLs-SEM analysis, and it is demonstrated in exogenous to construct endogenous, value R-
this study through convergent validity, square is used. The R-square results are
discriminant validity, and reliability testing. presented in table 6 below. The first R-square
1. Convergent Validity value in this study's results is 0.270. That is,
The principle that a construct measure the transformational leadership variable can
(indicator) must have a good correlation. account for 27.0 percent of organizational
Convergent Testing SmartPLS 3.2.9 shows commitment, with the other 73.0 percent
that the reflexive indicator is true because the explained by factors not considered in this
loading factor value for each necessary study. Furthermore, this research yielded an
construct manifest variable is greater than R-square value of 0.544. This suggests that
0.70 (Hair et al., 2011) Based on the outcomes, the variables of transformational leadership
Table 4 shows that all construct indicators and organizational commitment can explain
have a loading factor value more than 0.70, 54.4 percent of work performance, while the
indicating that they are valid and have remaining 45.6 percent is due to unaccounted
fulfilled convergent validity. for factors outside of the study. As a result,
2. Discriminant Validity SEM models are considered acceptable and
Taking the square root of the Average moderate-strong if their R2 (R-square) value
Variance Extracted (AVE) and comparing it is larger than 0.50 (Hair et al., 2011).
to the construct correlation. If the AVE 2. Q2 Predictive Relevance
square value is more than the correlation The value of Q2 is used to test the structural
value between constructs, it is declared to model (Predictive Relevance). If the value of
meet the requirements discriminant validity Q2 is larger than 0, the model is deemed to be
(Hair et al., 2011). Table 5 illustrates the good enough and predictive (Hair et al.,
findings, demonstrating that the model is 2011). The following is the formula for
correct. computing Q2:
2. Reliability Test Q2 = 1 – (1 – R12) x (1 – R22)
If the value of Cronbach's Alpha and Q2 = 1 – (1 – 0,270) x (1 – 0,544)
Composite Reliability is greater than 0.70, the Q2 = 1 – 0,33288
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Ausat et al. Journal of Leadership in Organizations Vol.4, No. 4 (2022) 61-82
leadership has a positive and significant to the organization. Work performance has a
impact on work performance (Han, 2020); strong and positive relationship with
(Dastane, 2020); (Salim et al., 2021); (Manzoor organizational commitment (Ulabor &
et al., 2019). Bosede, 2019); (Tjahjono et al., 2020). Another
According to the third hypothesis, study claims that job satisfaction has a
organizational commitment has a positive favorable and significant impact on
and significant impact on work performance. organizational commitment, as well as from
Individuals with a high level of organizational commitment to work
organizational commitment will performance (Shahab & Nisa, 2014).
demonstrate positive conduct toward the The fourth hypothesis claims that
organization, sacrifice the best they can, and through organizational commitment,
have a strong sense of loyalty to the transformational leadership has a positive
organization, as well as a desire to remain in but minor impact on work performance.
the organization (Hettiarachchi & According to the findings of this study,
Jayarathna, 2014). This means that people attempts to improve employee work
who have a high level of organizational performance can be done by cultivating
commitment must make an effort to perform employee organizational commitment,
well (high level of work performance). This is which is defined as an employee's sense of
not a problem because the logical love for the organization in which he or she
explanation for this finding is that works. Organizational commitment, as
SMEs owners who have implemented or defined by earlier researchers, is a strong
have a transformational leadership style conviction in and acceptance of the
want their employees to have a strong desire organization's goals and values, a readiness
to stay a member of the group, a willingness to exert significant effort on behalf of the
to work hard as the organization's ideals, and organization, and a strong desire to remain in
a certain willingness to accept the the organization (Choong et al., 2012).
organization's values and goals have full Employee organizational commitment,
support. That is, this is a behavior that which includes affective, continuance, and
displays employee loyalty to the normative commitment, can be increased by
organization, as well as the next stage in using a transformational leadership style that
which organizational members express and inspires employees to put their personal
practice care for the organization's success interests aside in order to focus on achieving
and further development in order to realize organizational goals, according to the
the organization's vision and mission. findings of this study. The impact, on the
Furthermore, employees who are coached by other hand, has been little. We claim that
a transformational leadership style will feel leaders are not yet aware of what employees'
satisfied, motivated, or inspired to keep main desires are hidden in their hearts,
learning something new in order to stay which is why this conclusion is not
relevant in a changing business environment noteworthy. As we all know, if a person does
that is becoming increasingly uncertain due not have one of the three logical reasons,
to the sophistication of information meaning that the individual is devoted to the
technology, but who still have a strong group, the group is intimately connected,
commitment to their organization and will and there are individual benefits or pay, he
continue to try new things that are beneficial will not immediately desire to conduct
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are used to examine the stability and validity roles of perceived social responsibility
of data gathered through other methods as a and organizational identification. Social
metric that constitutes the basis of the Responsibility Journal, 13(3), 585–600.
assessment. https://doi.org/10.1108/SRJ-11-2016-
0193/FULL/XML
Acknowledgements Allen, N. J., & Meyer, J. P. (1993).
The author thanks all participants involved Organizational commitment: Evidence of
for helping to compile, providing various career stage effects? Journal of Business
data and information so that this research can Research, 26(1), 49–61.
be completed. https://doi.org/10.1016/0148-
2963(93)90042-N
Almutairi, D. O. (2016). The Mediating
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Appendices
Table 1. SMEs Criteria
Enterprises Scale Asset Omzet Number of Employees
Small Enterprises >Rp 50–Rp500 million >Rp 300 million–Rp2,5 5-19 people
billion
Medium Enterprises >Rp 500 million–Rp10 >Rp 2,5 billion–50 20-99 people
billion billion
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Implementation of transformational No 0 0%
leadeship style Total 34 100%
Source: Primary Data, 2021
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