Moderating Role of Job Satisfaction on The Relation between Participative Leadership Styles and Performance in a Petrochemical Company

Abstract

The implementation of the participative leadership style has been positive on the increase in employee performance. However, how it works in an extraction and refining petrochemical-firm context is still elusive. This study investigates how a participatory leadership style may support employee performance as moderated by Job Satisfaction. Primary data from all 85 HRD employees in Cilegon Petrochemical Company is selected as a database. This study computes the relationships using the PLS-SEM procedure. This study proves that participative leadership style variables significantly influence employee performance. Job satisfaction has a significant positive effect on employee performance, and job satisfaction moderates the effect of participative leadership style on employee performance.