The Role of Transformational Leadership, Culture of Innovation, and Job Satisfaction in Improving Employee Performance at Pt Hutan Rindang Banua
Abstract
This study aims to analyze the influence of transformational leadership and a culture of innovation on employee job satisfaction and performance, with job satisfaction as a mediating variable. The study was conducted on 250 permanent employees of PT Hutan Rindang Banua using an associative quantitative approach. The sampling technique used purposive sampling, while data were collected through a Likert-scale questionnaire. Data analysis used Structural Equation Modeling based on Partial Least Squares (SEM-PLS). The results of the outer model test show that all indicators meet the validity and reliability criteria, with loading factor values ranging from 0.788 to 0.918; AVE 0.723 to 0.786; Cronbach's alpha 0.872 to 0.909; and composite reliability 0.913 to 0.936. In the inner model, transformational leadership significantly influences innovation culture, job satisfaction, and employee performance. Innovation culture and job satisfaction are also proven to significantly influence employee performance. The R-square value indicates a strong explanatory power of the model, especially for the employee performance variable of 0.729. These findings confirm that improving employee performance in the forestry sector requires transformational leadership supported by a culture of innovation and good job satisfaction.
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DOI: http://dx.doi.org/10.30659/jrbi.v23i2.53021
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