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All Journal Al-Kharaj: Jurnal Ekonomi, Keuangan & Bisnis Syariah
Hera Oktadiana
Institut Pariwisata Trisakti & James Cook University
Agriculture, Biological Sciences & Forestry Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Industrial & Manufacturing Engineering Social Sciences

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Examining Transformational Leadership as a Mediating Variable in Enhancing Employee Performance Diana Hasan; Rini Fatma Kartika; Andry Priharta; Hera Oktadiana
Al-Kharaj: Jurnal Ekonomi, Keuangan & Bisnis Syariah Vol. 8 No. 2 (2026): Al-Kharaj: Jurnal Ekonomi, Keuangan & Bisnis Syariah
Publisher : Intitut Agama Islam Nasional Laa Roiba Bogor

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47467/alkharaj.v8i2.11547

Abstract

This study examines how transformational leadership, work motivation, and cohesion influence employee performance in Indonesian Islamic banking institutions. Using survey data from 320 employees at seven Islamic banks and analyzed using PLS-SEM, the results indicate that work motivation and transformational leadership do not directly affect employee performance. However, transformational leadership significantly increases cohesion, which in turn has a strong positive influence on performance. Mediation analysis confirms that cohesion fully mediates the relationship between transformational leadership and employee performance. These findings highlight the importance of collective mechanisms in explaining performance in Sharia-compliant organizations and offer practical insights for Islamic banking leaders.
Co-Authors Andry Priharta Diana Hasan Rini Fatma Kartika