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Wawan Setiawan
Universitas Surabaya

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THE ROLE OF TRANSFORMATIONAL LEADERSHIP IN ORGANIZATIONAL CULTURE, CHANGE CAPABILITY, AND ORGANIZATIONAL PERFORMANCE AT PT HERVITAMA INDONESIA Wawan Setiawan; Werner Ria Murhadi
Jurnal Media Ekonomi (JURMEK) Vol 31 No 2 (2026): Jurnal Media Ekonomi
Publisher : LPPM UNIVERSITAS BINA INSAN

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32767/jurnalmediaekonomi.v31i2.3374

Abstract

Purpose: This study addresses organizational performance challenges at PT Hervitama Indonesia amid a dynamic business environment. Although previous studies have examined transformational leadership through organizational culture and change capability separately, limited evidence integrates both pathways with their direct relationships with organizational performance in a single empirical model, particularly in an Indonesian trading and industrial solutions company. Research Methodology: A causal quantitative approach was applied to 52 permanent employees using a census technique. Data were collected through a five-point Likert questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with 5,000 bootstrap subsamples. Results: Transformational leadership significantly affects organizational performance (β=0.332), organizational culture (β=0.515), and change capability (β=0.447). Organizational culture (β=0.287) and change capability (β=0.371) also significantly affect organizational performance. The model explains 61.5% of the variance in organizational performance. Both organizational culture and change capability significantly mediate the relationship between transformational leadership and organizational performance. Conclusions: Transformational leadership is an important determinant of organizational culture, change capability, and organizational performance, while organizational culture and change capability provide complementary pathways to performance. Limitations: The study is limited to one company, 52 employees, and cross-sectional employee perceptions, which may restrict generalizability. Contributions: The study integrates organizational culture and change capability as complementary mechanisms linking transformational leadership to performance, extending leadership and dynamic capabilities perspectives. Managerially, the findings support strengthening transformational leadership, consistent organizational values, innovative capabilities, and change champions.