Journal of Applied Business, Taxation and Economics Reseach
Vol. 5 No. 6 (2026): August 2026

The Effect of Transactional Leadership Style and Organisational Culture on the Performance of PDAM Employees in Luwu Regency

Abdal Abdal (Faculty of Economics and Business, Muhammadiyah University of Palopo)
Sukri Sukri (Faculty of Economics and Business, Muhammadiyah University of Palopo)
Muhamad Hadis Badewi (Universitas Muhammadiyah Palopo)



Article Info

Publish Date
26 Aug 2026

Abstract

This study aims to examine the effect of transactional leadership style and organizational culture on employee performance at the Regional Water Supply Company (PDAM) of Luwu Regency. The study was motivated by the limited empirical evidence concerning the combined influence of transactional leadership style and organizational culture on employee performance in regional public service organizations. Understanding these relationships is important because leadership practices and organizational culture are considered key factors in improving organizational effectiveness and the quality of public services. This study employed a quantitative approach using a survey method. The research involved all 95 employees of PDAM Luwu Regency through an exhaustive sampling technique. Primary data were collected using a structured questionnaire and analyzed using validity testing, reliability testing, partial hypothesis testing (t-test), and simultaneous hypothesis testing (F-test) with the assistance of SPSS software. The findings indicate that transactional leadership style has a positive and significant effect on employee performance. Organizational culture also has a positive and significant effect on employee performance. Furthermore, transactional leadership style and organizational culture simultaneously have a significant influence on employee performance. These findings suggest that strengthening leadership practices and fostering a supportive organizational culture can contribute to improving employee performance. The results of this study are expected to provide practical insights for PDAM management in developing leadership practices and organizational strategies that support sustainable employee performance improvement and better public service quality.

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Journal Info

Abbrev

jabter

Publisher

Subject

Economics, Econometrics & Finance

Description

This journal aims to take part in the advancement of knowledge in economics and business by publishing high quality research on contemporary trends in economics and business in emerging markets or countries. As the journal main horizon is to embrace contemporary trends in applied business, taxation, ...