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Political Skill and Transactional Leadership on Employee Performance: The Mediating Effect of Organizational Work Culture

Author

Listed:
  • Syamsul Hadi
  • Ana Faridiana
  • Kusuma Chandra Kirana
  • Ambar Lukitaningsih
  • Christina Heti Tri Rahmawati
  • Eni Purnasari
  • Nabila Wahyuningtyas

Abstract

Purpose – Previous research has examined political skills and transactional leadership in examining predictors and determinants of employee performance. This study was made necessary by the lack of research on organizational work culture and mediation in the holding industry. This study examines differences in employee performance due to political skills and transactional leadership and examines organizational work culture as a mediating factor. Design/methodology/approach – This study used census sampling techniques. Collect data using questionnaires and analyze research model hypotheses using Confirmatory Factor Analysis and Structural Equation Modeling with SmartPLS. Findings – The data analysis results show that political skills and transactional leadership are not positively related to employee performance and organizational work culture. Organizational work culture also fails to be a mediator, and only the impact of organizational work culture on employee performance is positive and significant. Practical implications – Organizations must do everything possible to ensure an improved adaptable, collaborative, flexible, and team-oriented work culture within the organization, as this is essential to improving performance by providing motivation, embracing innovative ideas, responding to employee complaints, and enabling the organization to survive and thrive. Originality/value – The study provides insights into how and to what extent political skills and transactional leadership variables affect employee performance. This study complements the existing literature and explores the mediating role of organizational work culture. Executives and policymakers can use the study's findings to improve organizational work culture in the corporate holding industry. The study opens up possibilities for future research.

Suggested Citation

  • Syamsul Hadi & Ana Faridiana & Kusuma Chandra Kirana & Ambar Lukitaningsih & Christina Heti Tri Rahmawati & Eni Purnasari & Nabila Wahyuningtyas, 2024. "Political Skill and Transactional Leadership on Employee Performance: The Mediating Effect of Organizational Work Culture," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 112-129.
    • Handle: RePEc:bas:econst:y:2024:i:4:p:112-129
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    References listed on IDEAS

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    1. Vincent K. Chong & Isabel Z. Wang & Gary S. Monroe & Liam Strike & Feida (Frank) Zhang, 2023. "The effect of non‐financial performance measures, organisational politics and political skill on job performance: Evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 2557-2595, June.
    2. Mahajan, Ashish & Templer, Andrew, 2021. "Leader political skill, influence tactics, and member performance: Supplementary, complementary and contrasting perspectives," Journal of Business Research, Elsevier, vol. 133(C), pages 242-251.
    3. Good, Megan C. & Schwepker, Charles H., 2022. "Business-to-business salespeople and political skill: Relationship building, deviance, and performance," Journal of Business Research, Elsevier, vol. 139(C), pages 32-43.
    4. Carnevale, Joel B. & Hatak, Isabella, 2020. "Employee adjustment and well-being in the era of COVID-19: Implications for human resource management," Journal of Business Research, Elsevier, vol. 116(C), pages 183-187.
    5. Francis Donkor & Isaac Sekyere & Frank Akwasi Oduro, 2022. "Transformational and Transactional Leadership Styles and Employee Performance in Public Sector Organizations in Africa: A Comprehensive Analysis in Ghana," Journal of African Business, Taylor & Francis Journals, vol. 23(4), pages 945-963, October.
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    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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