The Effect of Transformational Leadership and Competence on Employee Performance with Job Satisfaction as Intervening Variable

Yusuf Ronny Edward () and Lila Maria Kaban

Academic Journal of Economic Studies, 2020, vol. 6, issue 2, 62-72

Abstract: TThis study aims to see and determine the effect of transformational leadership and competence of PT Waruna Shipyard Indonesia on employee performance through job satisfaction as intervening variable. This research was conducted at PT. Waruna Shipyard Indonesia, located on Bagan Deli Street, Medan Belawan District, North Sumatra. This research was conducted of the month of August 2019-January 2020. The data analysis tool by structural equation modeling (SEM) with smartpls program. The population is employees at PT. Waruna Shipyard Indonesia in 2019, namely as many as 134 employees. This study used slovin formula for the sampling, calculations sample were respondents is 100 permanent employees of PT. Waruna Shipyard Indonesia. Thus taken 30 respondents outside of the sample to validity and reliability test instrument for testing questionnaires. Based on structural equation modeling (SEM) analysis, transformational leadership and competence have positive and significant effect on employee performance with job satisfaction as intervening variable at PT. Waruna Shipyard Indonesia. The contribution of transformational leadership, competence, and job satisfaction explains the employee performance variable of 0.724 or 72.40%. The remaining 0.276 or 27.60% is effect by other independent variables not examined in this study. In effect, it could be said that size of Nigerian financial system is small. So, we recommend that government should enable institutional environment that foster relationship between authorities of fiscal and monetary policies.

Keywords: Transformational Leadership; Competence; Employee Performance; Job Satisfaction (search for similar items in EconPapers)
JEL-codes: L25 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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