Transformational Leadership in Indonesian Diversified-Cultural SME Sector: An Investigation of the Settlement Criteria of Job Performance

Abstract

The main goals of the study were to examine how transformational leadership affected organizational citizenship behavior, worker productivity, and employee job satisfaction in Indonesian Small- and Medium-Sized Enterprise (SME) settings. The study used a quantitative technique and included 295 people as samples. Since Indonesia is a multi-cultural nation, responses were gathered from employees in multiple cities. Data was gathered via online and print surveys and was then analyzed using SPSS 23 and Smart PLS Software. The findings of this study point to a clear, positive, and substantial relationship between transformational leadership and worker job satisfaction, organizational citizenship behavior, and work performance. Additionally, to job satisfaction and organizational citizenship, it has been shown that employee job performance is somewhat mediated by employee behavior. This is the first paper in the setting of Indonesian SMEs that looks at the impact of transformational leadership on employee job performance after job satisfaction and organizational citizenship behavior.