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All Journal EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis Jurnal Multidisiplin West Science Journal of Economics, Entrepreneurship, Management Business and Accounting West Science Business and Management Jurnal Bisnis dan Manajemen West Science West Science Interdisciplinary Studies West Science Interdisciplinary Studies Journal Economics Technology and Entrepreneur West Science Social and Humanities Studies West Science Islamic Studies
Mu'min, Halek
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Religion Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Energy Environmental Science Industrial & Manufacturing Engineering Law, Crime, Criminology & Criminal Justice Public Health Social Sciences Other

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The Effect of Performance Allowances on Organizational Culture: The Moderating Role of Leadership Style Zoniarti, Zoniarti; Nurzam, Nurzam; Irwanto, Tito; Mu'min, Halek
EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis Vol 14 No 2 (2026): April
Publisher : UNIVED Press

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37676/ekombis.v14i2.9422

Abstract

This study delves into the interactive relationship between performance allowances and organizational culture, with specific reference to the moderating effect of leadership style amongst a sample of 180 PNS and PPPK officers working in city-level offices of the Ministry of Religious Affairs. Using a cross-sectional survey design and Partial Least Squares Structural Equation Modeling (PLS-SEM), this research assesses hypotheses informed by social exchange theory and contingency theory. Performance allowances are found to impact organisational culture substantially (β = 0.169, p < 0.05); however, such an impact is mainly moderated by leadership style, which shows no direct effects. Performance allowances significantly impact leadership style (β = 0.785, p < 0.001), and the latter has a strong impact in turn on organisational culture (β = 0.752, p < 0.001). Leadership style's moderating effect on the relationshipbetween performance allowances and organisational culture is statistically significant (β = 0.050, p < 0.05), and implies synergistic effects when these two constructs are interactive. The model predicts 67.1% and 61.6% of variance for organisational culture and leadership style, respectively. These findings enrich the literature on compensation by presenting leadership behaviour as the overriding mechanism by which performance-based compensation impacts organisational culture and so implying that integrated interventions combining compensation systems and leadership development initiatives may result in superior cultural transformation outcomes.
Co-Authors . Syamsulbahri Agus Tapaningsih , Weni Indah Doktri Ajub Ajulian ZM Al Rizky, Farid Andika Isma Andri Ardhiyansyah Arifannisa, Arifannisa Bakri Bakri Basir, Badirun darmanto darmanto Diah Dharmayanti Dja'wa, Asrianti Edy Anan Frans Sudirjo Gatot Wijayanto Hidayat, Sidiq Ilma Wulansari Hasdiansa Iwan Harsono Jemmy, Jemmy Judijanto, Loso Jumui Marjuki Marjuki Mega Fatimah Rosana Mokodenseho, Sabil Muhammadong Nurzam, Nurzam Pahrijal, Rival Parhusip , Jadiaman RR Roosita Cindrakasih setiawati, rahmi Siska Yuli Anita Siska Yulia Defitri Suardi, Soni Sufriaman, Sufriaman Sumerli A. , Chevy Herli Sya’rani, Ridwan Tito Irwanto, Tito Triyantoro , Andri Utami , Eva Yuniarti Utami, Eva Yuniarti Utomo, Bekti Yanti, Dawi Zoniarti, Zoniarti Zulfikri, Agung