Inkubis: Jurnal Ekonomi dan Bisnis
Vol. 8 No. 2 (2026): INKUBIS Jurnal Ekonomi Dan Bisnis

Analysis of the Role of Work Environment and Leadership Style in Improving Service Performance at Automotive Industry

Deti Mulyo Harsono (Universitas Katolik Parahyangan)
Mulyawan Hardi (Universitas Katolik Parahyangan)
Astri Amanda (Universitas Katolik Parahyangan)



Article Info

Publish Date
15 Jul 2026

Abstract

Background: The automotive industry in Indonesia contributes 2.1% to the national GDP but was heavily affected by the Covid-19 pandemic, causing declines in demand and service revenue. To recover, companies must improve service quality through better work environments and leadership practices. Objective: This study analyzes the role of the work environment and leadership style in improving service performance at Automotive Industry. Method: Using a quantitative approach, data were collected from 138 service advisors and analyzed with PLS-SEM to examine validity, reliability, and relationships among variables. Result: The work environment significantly affects leadership style (β = 0.770, p = 0.000), which positively influences service performance (β = 0.497, p = 0.000). Although the direct effect of the work environment on service performance is smaller (β = 0.289, p = 0.010), the total impact is stronger due to leadership’s mediating role (indirect effect = 0.382). Conclusion: Asupportive workenvironment enhances leadership effectiveness, which leads to better service performance. Originality/Value (State of the Art): This study is among the first to empirically examine leadership style as a mediating variable linking work environment to service performance, specifically among service advisors in automotive industry. By situating the analysis within Indonesia’s automotive service sector during the post-pandemic recovery period, this research extends the DeLone and McLean organizational performance framework to the dealer-level service context, addressing a gap in the literature on human-centered performance drivers in competitive automotive retail settings.

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Journal Info

Abbrev

ink

Publisher

Subject

Economics, Econometrics & Finance

Description

INKUBIS: Jurnal Ekonomi dan Bisnis is a scientific periodical published twice a year or 6 months. INKUBIS: Jurnal Ekonomi dan Bisnis is managed by the Politeknik Siber Cerdika Internasional which publishes scientific manuscripts in the family of economics and ...