Jurnal Media Ekonomi
Vol 31 No 2 (2026): Jurnal Media Ekonomi

THE ROLE OF TRANSFORMATIONAL LEADERSHIP IN ORGANIZATIONAL CULTURE, CHANGE CAPABILITY, AND ORGANIZATIONAL PERFORMANCE AT PT HERVITAMA INDONESIA

Wawan Setiawan (Universitas Surabaya)
Werner Ria Murhadi (Universitas Surabaya)



Article Info

Publish Date
07 Oct 2026

Abstract

Purpose: This study addresses organizational performance challenges at PT Hervitama Indonesia amid a dynamic business environment. Although previous studies have examined transformational leadership through organizational culture and change capability separately, limited evidence integrates both pathways with their direct relationships with organizational performance in a single empirical model, particularly in an Indonesian trading and industrial solutions company. Research Methodology: A causal quantitative approach was applied to 52 permanent employees using a census technique. Data were collected through a five-point Likert questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with 5,000 bootstrap subsamples. Results: Transformational leadership significantly affects organizational performance (β=0.332), organizational culture (β=0.515), and change capability (β=0.447). Organizational culture (β=0.287) and change capability (β=0.371) also significantly affect organizational performance. The model explains 61.5% of the variance in organizational performance. Both organizational culture and change capability significantly mediate the relationship between transformational leadership and organizational performance. Conclusions: Transformational leadership is an important determinant of organizational culture, change capability, and organizational performance, while organizational culture and change capability provide complementary pathways to performance. Limitations: The study is limited to one company, 52 employees, and cross-sectional employee perceptions, which may restrict generalizability. Contributions: The study integrates organizational culture and change capability as complementary mechanisms linking transformational leadership to performance, extending leadership and dynamic capabilities perspectives. Managerially, the findings support strengthening transformational leadership, consistent organizational values, innovative capabilities, and change champions.

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Journal Info

Abbrev

jurmek

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal ini dimaksudkan sebagai media kajian ilmiah hasil penelitian, pemikiran, pengkajian, dan pengembangan mengenai isu ekonomi, manajemen, dan bisnis. Situs Jurnal Media Ekonomi menyediakan artikel-artikel jurnal untuk diunduh secara gratis, berskala nasional, dan sumber referensi bagi akademisi. ...