Organizational Culture, Leadership, and Performance: Testing Employee Engagement as a Mediation
DOI:
https://doi.org/10.54099/jdemp.v2i1.552Keywords:
Organizational Culture, Transactional Leadershio, Employee Engagement, Employee PerfomanceAbstract
The purpose of this study is to analyze the effect of organizational culture and transactional leadership on employee performance with employee engagement as a mediating variable. The research was conducted at PT. Kreasi Hexa Indonesia, an outsourching service provider located in Bekasi, Indonesia. This study employed a quantitative approach. Data were collected through questionnaires distributed to 150 respondents as the research sample. The data were then analyzed using Structural Equation Modeling Partial Least Squares (SEM-PLS) to examine both direct and indirect causal relationship among the studied variables. The findings reveal that organizational culture and transactional leadership have a positive and significant effect on employee performance. Furthermore, employee engagement was found to serve as a partial mediator, strengthening indirect impact of organizational culture and transactional leadership on performance improvement. These result suggest that managerial practices not only exert a direct influence on performance but also operate through the psychological mechanism of employee engagement with their work and organization. The novelty of this study lies in its empirical evidence from the Indonesian outsourcing sector, demonstrating that employee engagement functions as a strategic psychological mechanism linking organizational culture, leadership practices, and employee engagement strategies in order to achieve sustainable performance improvement.
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