This study examines the effects of transformational leadership and innovative work behavior on employee performance at PT. Cipta Niaga Semesta, an FMCG distribution company in Bojonegoro, East Java. A quantitative approach was used, involving all 50 employees as both population and sample through saturated sampling, with data analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4.0. The results show that transformational leadership has a positive and significant effect on employee performance and on innovative work behavior, while innovative work behavior has no significant effect on employee performance. This implies that strengthening transformational leadership is a more effective lever for improving performance than innovative work behavior alone. The study is limited to a single company and a cross-sectional design, which restricts generalizability.
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