<![CDATA[Effective leadership and a supportive work environment are widely regarded as key drivers of employee performance in state-owned enterprises. However, the mechanism through which they operate remains underexplored, particularly the mediating role of organizational culture. This study examines the influence of leadership effectiveness and work environment on employee performance at PT PLN (Persero) UP3 Surabaya Barat, both directly and indirectly through organizational culture as an intervening variable. Using a quantitative approach with a saturated sampling technique, all 83 employees were included as respondents. Data were collected through five-point Likert-scale questionnaires and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS 3.0. Measurement model evaluation confirmed convergent validity, discriminant validity, and construct reliability for all four latent variables. Structural model results show that leadership effectiveness and work environment both exert significant positive direct effects on employee performance and organizational culture; organizational culture positively and significantly affects employee performance; and organizational culture significantly mediates both relationships. Work environment appears to influence performance primarily through this indirect pathway, while leadership effectiveness influences performance both directly and indirectly. These findings reinforce the strategic importance of cultivating a strong organizational culture as a performance-enabling mechanism, particularly within state-owned enterprise settings.]]>
