Influence of Transformational Leadership on Organizational Citizenship Behavior and Organizational Task Performance Cross Level Analysis on Micro Small and Medium Enterprises in Indonesia

Abstract

In industry 4.0, individual behavior in organization is still very much considered as the main determinant of organizational performance. Organizational citizenship behavior (OCB) is one of the unique behavior of individuals affecting the effectivity of the organization. This study focuses on organizational citizenship behavior (OCB) based on the aspects of antecedents and their consequences. This study aims at examining (1) the indirect influence of transformational leadership on individual performance through organizational citizenship behavior motivation (OCBM) and OCB, (2) the direct influence of OCB on individual performance and organizational performance, (3) the direct influence of OCB for individual performance and organizational performance. This study was conducted to 32 heads of small business and 59 employee at small business in West Sumatera and analyzed using cross level methods and hypothesis testing using hierarchical linear modeling (HLM). This study found that 1). OCBM and OCB simultaneously mediate the relation between transformational leadership with individual performance and also have role in elevating the individual performance, 2) individual performance is the mediator between OCBM with organizational performance and it contributes in elevating the organizational performance. The theoretical and practical implications of this study are the tranformational leadership-oriented organizational citizenship (TLoOC) is able to motivate the members to carry out OCB actively in organizations. Some limitations and future research directions are discussed.