The Effect of Transformational Leadership, Organizational Learning, and Innovation on Employment Engagement and Its Implications on Employee Performance of Malahayati Shipping Polytechnic

Abstract

The purpose of this study was to examine the effect of transformational leadership, organizational learning, and innovation on employment engagement and its implications on the performance of employees in malahayati shipping polytechnic. Data were analyzed using structural equation modeling (SEM). From the results we can see that transformational leadership affects employee engagement, organizational learning affects employee engagement, innovation affects employee engagement, transformational leadership affects employee performance, organizational learning affects employee performance, innovation affects employee performance, and employee engagement affects employee performance, transformational leadership affects employee performance through employee engagement, organizational learning affects employee performance through employee engagement, and innovation affects employee performance through employee engagement. The model also proves that employee engagement functions as a mediator. These findings re-verify that the employee performance improvement model still relies on the functions of strengthening transformational leadership, increasing organizational learning, and increasing innovation, so that these functions can affect employee engagement and have an impact on improving employee performance. Academically, this causality combination model can be justified and can be applied to organizations and management. For future research, the current authors suggest developing it by adding variables such as talent management and leaders' performance expectancy.