Work Environment as Moderating Variable, Impact of Transformational Leadership and Organizational Culture on Employee Performance

Abstract

This study aims to determine the effect of transformational leadership on the work environment, the influence of organizational culture on the work environment, the impact of the work environment on work performance, the effect of transformational leadership on work performance through the work environment, and the influence of organizational culture on work performance through the work environment. Quantitative research using questionnaire data collection method. The population in this study were all employees at Non-Bank Islamic Financial Institutions (LKSNB), using a saturated sampling technique of 45 employees. Using path analysis with external model measurements, mediation tests, and internal model measurements. The results showed that transformational leadership had a significant positive effect on the work environment, organizational culture had a significant negative impact on the work environment, and work environment had a significant positive effect on work performance. The work environment can mediate the influence of transformational leadership on work performance. In comparison, the work environment has yet to mediate organizational culture's effect on performance. This research contributes to the relationship between transformational leadership behavior, organizational culture, work environment, and employee performance. Various variables are tested to provide results and a more comprehensive understanding of employee performance factors. Therefore, institutional leaders must have transformational abilities, work culture, and the environment by obtaining good information about their employees to achieve expected or significant results.