The influence of strategic planning and organizational culture on organizational performance with transformational leadership as a mediating variable: a study on the Madiun City government

Haris Al Marzuki Faza and Wahdiyat Moko
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Haris Al Marzuki Faza: Department of Management, Faculty of Economic and Business; Master of Management Program Brawijaya University, Malang, Indonesia
Wahdiyat Moko: Faculty of Economic and Business; Master of Management Program Brawijaya University, Malang, Indonesia

International Journal of Research in Business and Social Science (2147-4478), 2025, vol. 14, issue 2, 79-90

Abstract: This research aims to identify and analyze the influence of strategic planning, organizational culture, and organizational performance, with transformational leadership as a mediating variable. The research was conducted in Madiun City, East Java, Indonesia, within the municipal government led by Mayor Drs. H. Maidi, S.H., M.M., M.Pd. despite budget constraints and the failure to meet the Regional Medium-Term Development Plan (RPJMD) targets, Madiun City achieved significant economic growth, a high Human Development Index (HDI), and numerous awards for excellence in governance. This study employs a quantitative approach, utilizing survey data from civil service officials (echelon II, echelon III, and echelon IV) within the Madiun City Government to analyze both the direct and indirect effects of strategic planning and organizational culture on organizational performance. Data analysis was conducted using descriptive statistical analysis to examine data characteristics and inferential statistical analysis through SEM-PLS to test the contextual relationships between variables. The findings of this research confirm that both strategic planning and organizational culture have a significant positive impact on organizational performance, with transformational leadership acting as a mediating variable, resulting in a complementary (partial mediation) effect. Based on these findings, this study offers recommendations to enhance public sector performance, emphasizing the need for integrated strategic planning, robust leadership development programs, and adaptive governance strategies. The government must strengthen leadership competencies to drive improvements in public service performance. Future research can be conducted at various levels of government organizations, both at the regional level, at the regency and city, provincial or ministry levels. Additionally, while this study explores the root causes of recurring problems, it is a rare and unique empirical study that examines the effect of strategic planning and organizational culture on organizational performance a lot of research conduct this on private sector not a public sector. Key Words:Strategic Planning, Organizational Culture, Transformational Leadership, Organizational Performance, Government.

Date: 2025
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