Effect of Transformational Leadership and Breakthrough Leadership on Organizational Performance through the Variable of Employee Satisfaction: A Case Study

Abstract

Purpose: The article investigates the impact of transformational leadership and breakthrough leadership on organizational performance both directly and through intervening variables. Design/ Methodology/Approach: This type of research is a quantitative method. Primary data were obtained from questionnaires distributed while secondary data were obtained from a company's annual reports published. Respondents are employees of 15 coal mining companies listed in Indonesia stock exchange with a total of 201 samples from supervisors to directors. The data collected are analyzed using the SEM-AMOS (Structural Equation Model-Analysis of Moment Structures) at that point for the intervention impact by using the Sobel Test. Findings: The findings of the study show that transformational leadership and breakthrough leadership both have a direct influence on employee motivation and satisfaction, but do not have a direct effect on organizational performance. Employees' satisfaction mediates breakthrough leadership on organizational performance. Practical Implication: The study gives an input to the coal mining companies listed to improve organizational performance which requires a breakthrough leadership by fulfilling the requirements of employees' satisfaction. Priority fulfillment of employee satisfaction starts from fulfillment of need, discrepancies, value attainment, equity, and dispositional/genetic component. Originality/ Value: The research provides new concepts in the research framework and builds and enriches alternative dimensions of leadership breakthrough.

Halal Industry’s Organizational Performance Factors: A Systematic Literature Review

“…Managerial and strategic planning implication is paramount in developing and maintaining an organization's good performance through increased employee satisfaction. Furthermore, the management and strategic planning elements work in tandem with information-sharing capabilities and effective information flow in generating a favorable organizational environment, which is critical in managing VUCA in the market setting (Triraharjo et al, 2020) (Rose et al, 2019). Kryvoruchko et al (2018) suggested in their study on enterprise management in a VUCA environment that SMEs must be more dynamic in their entrepreneurial management and more agile in adjusting their business models to remain relevant to evolving customer trends that have become more sophisticated in recent years.…”