Journal of Economics and Management
Vol. 4 No. 2 (2026): Journal of Economics and Management, June 2026

The Influence of Leadership Style and Work Motivation on Employee Performance in the Oil Palm Processing Industry: A Study on PT Sawitmas Nugraha Perdana Sampit

M. Thamrin Noor (Management Study Program, Sekolah Tinggi Ilmu Ekonomi Sampit, Indonesia)
Hari Susanto (Entrepreneurship Study Program, Sekolah Tinggi Ilmu Ekonomi Sampit, Indonesia)
Rinni Wardani (Entrepreneurship Study Program, Sekolah Tinggi Ilmu Ekonomi Sampit, Indonesia)
Ahmad Rudini (Management Study Program, Sekolah Tinggi Ilmu Ekonomi Sampit, Indonesia)
Deky Prasetyo (Management Study Program, Sekolah Tinggi Ilmu Ekonomi Sampit, Indonesia)
Norhidayah (Management Study Program, Sekolah Tinggi Ilmu Ekonomi Sampit, Indonesia)



Article Info

Publish Date
26 Jun 2026

Abstract

Employee performance is a critical determinant of organizational competitiveness and sustainability, particularly in labor-intensive industries such as palm oil processing. Although previous studies have confirmed the importance of leadership style and work motivation in influencing employee performance, empirical findings remain inconsistent across organizational settings, indicating the need for further investigation in specific industrial contexts. Limited studies have also simultaneously examined the relative contribution of leadership style and work motivation in the Indonesian palm oil processing sector. This study aims to analyze the influence of leadership style and work motivation on employee performance at PT Sawitmas Nugraha Perdana Sampit. Using a quantitative approach with a cross-sectional design, data were collected from 38 employees through a saturated sampling technique and analyzed using multiple linear regression. The results reveal that leadership style has a positive and significant effect on employee performance (β = 0.141; t = 2.358; p = 0.024), while work motivation exerts a stronger positive effect (β = 0.764; t = 8.698; p < 0.001). Simultaneously, both variables significantly influence employee performance (F = 68.367; p < 0.001) and explain 79.6% of performance variation (R² = 0.796). The novelty of this study lies in providing empirical evidence from the palm oil processing industry, demonstrating that work motivation contributes more substantially to employee performance than leadership style. These findings enrich human resource management literature and offer practical implications for managers in designing leadership development and employee motivation strategies to improve organizational productivity.

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Journal Info

Abbrev

ecoma

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Journal of Economics and Management (ECOMA) is a peer-reviewed, open access, and online journal about research, reports, book reviews, and commentaries on all aspects of Economics and Management which is published by Lembaga Publikasi Ilmiah Nusantara or PUBLINE Institute. ECOMA provides open access ...