<![CDATA[Background: This study is grounded in the increasing dynamics and complexity of the business environment, which require organizations to continuously adapt through innovation to achieve sustainable performance. Transformational leadership and organizational culture are considered two critical factors that can foster employee innovation in responding to such changes. Objective: This study aims to analyze the influence of transformational leadership and organizational culture on employee innovation and its implications for sustainable corporate performance. Method: This research employs a quantitative approach with an explanatory design, using purposive sampling involving 120 employees. Data were collected through a Likert scale based questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (SEM-PLS). Results: The findings indicate that transformational leadership and organizational culture have a positive and significant effect on employee innovation, while innovation has the most dominant influence on sustainable corporate performance. Furthermore, employee innovation is proven to act as a partial mediating variable in the relationship between transformational leadership, organizational culture, and corporate performance. These findings highlight that improving sustainable organizational performance is not only directly influenced by leadership and organizational culture but also through strengthening employee innovation as a key factor in creating sustainable value.]]>
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