Objective: This study examines the effects of transformational leadership and Quality of Work Life (QWL) on employee performance, with Organizational Citizenship Behavior (OCB) as a mediating variable among employees of palm oil companies in Melawi Regency. The study is motivated by a 15.5% decline in employee performance during 2021–2025. Methods: A quantitative explanatory approach was employed involving 346 permanent employees selected using non-proportional stratified random sampling. Data were collected through Likert-scale questionnaires and analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). Novelty: This study integrates transformational leadership and QWL in a single model with OCB as a mediating mechanism within the palm oil industry, addressing inconsistent findings reported in previous studies. Results: Transformational leadership and QWL positively and significantly affect employee performance and OCB. OCB also has a positive effect on employee performance and partially mediates the relationships between transformational leadership, QWL, and employee performance. These findings emphasize the importance of strengthening transformational leadership, improving QWL, and fostering OCB to achieve sustainable employee performance. Conclusion: Strengthening employee performance requires the integration of transformational leadership and Quality of Work Life (QWL) to foster Organizational Citizenship Behavior (OCB). The findings suggest that organizations should prioritize inspirational leadership, employee well-being, fair compensation, and a supportive work environment to encourage extra-role behaviors and achieve sustainable organizational performance.
Copyrights © 2026