The influence of leadership style on employee performance mediated by work conflict and moderated by job stress

Abstract

This research paper aims to examine whether there is a significant effect of overall Leadership on Employee Performance. Furthermore, additional focus could be placed on the question, whether Work Conflict can play a mediating role of Leadership style on Employee Performance or Job Stress can play a moderating role between Work Conflict on Employee Performance and Leadership Style on Employee Performance. After reviewing the literature, there are seven hypotheses proposed in this study. The dependent variable is Employee Performance, while the independent variable is Leadership Style. The study design consisted of a population with a saturated sample of 50 workers from an SME company in Surabaya, East Java, Indonesia. The data is processed using SEM Smart PLS 3 where the bootstrap method is used to test hypotheses and the results of the study show that Job Stress has no significant effect on Employee Performance, Leadership Style and Work Conflict have a significant effect on Employee Performance, Leadership Style has a significant effect on Work Conflict, Job Stress only acts as a potential moderating because it has no a significant direct relationship with Employee Performance and cannot moderate Work Conflict on Employee Performance and Leadership Style on Employee Performance, and Leadership Style has a significant effect on Employee Performance through Work Conflict. This study provides input to enrich the theory of the relationship between leadership and employee performance with mediating and moderating factors.