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The effect of transactional leadership on employee performance mediated by job satisfaction, job stress and trust

Akbar Alif Hutama, Noermijati Noermijati and Dodi Wirawan Irawanto
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Akbar Alif Hutama: University of Brawijaya
Noermijati Noermijati: University of Brawijaya
Dodi Wirawan Irawanto: University of Brawijaya

International Journal of Research in Business and Social Science (2147-4478), 2024, vol. 13, issue 3, 151–166

Abstract: This study aims to investigate the impact of transactional leadership on employee performance through the mediation of job satisfaction, job stress, and trust. This study employs explanatory research using a quantitative approach. The population in this study were employees of companies engaged in shipbuilding in Surabaya city, namely PT. Dok dan Perkapalan Surabaya (Persero). The study used saturated sampling. The study had 69 respondents. Data was gathered through surveys and documentation, and the instrument was tested using likert scales. The data were analyzed using the structural equation model partial least squares (SEM-PLS) modelling. The finding of this study indicated that Transactional Leadership can enhance employee performance. Furthermore, Transactional Leadership can boost job satisfaction and trust while reducing employee stress. Employee performance can be improved by addressing job satisfaction issues. Employee performance is positively correlated with job satisfaction. However, Job stress has no significant effect on employee performance. While trust can enhance employee performance. Job Satisfaction can mediate the effect of Transactional Leadership on Employee Performance, whereas Job Stress cannot. Trust has the ability to mediate the impact of Transactional Leadership on Employee Performance. The findings of this study advise PT. Dok dan Perkapalan Surabaya (Persero) to maintain and improve the leader's transactional leadership style in managing various resources in the company in order to foster a positive relationship between employees and the company, allowing employee performance to improve optimally. Key Words:Transactional Leadership, Employee Performance, Job Satisfaction, Job Stress and Trust

Date: 2024
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International Journal of Research in Business and Social Science (2147-4478) is currently edited by Prof.Dr.Umit Hacioglu

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