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The Effect of Servant Leadership and Breakthrough Leadership on Organization Performance with Employee Satisfaction as Intervening Variable at IDX-listed (Indonesia Stock Exchange) Coal Mining Companies in Indonesia

Author

Listed:
  • Joko Triraharjo

    (Doctoral Management, Mercu Buana University, Meruya Selatan, Jakarta, Indonesia)

  • Havidz Aima

    (Doctoral Management, Mercu Buana University, Meruya Selatan, Jakarta, Indonesia)

  • Achmad Sutawijaya

    (Doctoral Management, Mercu Buana University, Meruya Selatan, Jakarta, Indonesia)

Abstract

Indonesia is the third largest coal producer in the world. Indonesia's total coal production in 2018 is 528 million tons. Of this amount, 320 million tons are produced by coal mining companies listed on the Indonesia Stock Exchange. Among these coal mining companies, there are large performance gaps between each other, both in terms of financial performance and production achievement. Their performance is hypothesized to be influenced by leadership style. The purpose of this study was to analyze the influence of servant leadership and breakthrough leadership on organizational performance with employee satisfaction as an intervening variable in coal mining companies listed on the Indonesia Stock Exchange. Respondents from this study were 12 coal mining companies listed on the IDX in Indonesia. The type of research used is quantitative methods. The research respondents were 113 people in the position of supervisors to directors. Data were analyzed using the Structural Equation Model (SEM - AMOS). The results showed that servant leadership did not have a positive impact on employee satisfaction but had a positive impact on organizational performance, while Breakthrough Leadership had a positive impact on employee satisfaction but did not have a positive impact on organizational performance. Employee satisfaction has a positive and significant impact on organizational performance but does not mediate organizational performance. Novelty from this research is about breakthrough leadership.

Suggested Citation

  • Joko Triraharjo & Havidz Aima & Achmad Sutawijaya, 2019. "The Effect of Servant Leadership and Breakthrough Leadership on Organization Performance with Employee Satisfaction as Intervening Variable at IDX-listed (Indonesia Stock Exchange) Coal Mining Compani," International Review of Management and Marketing, Econjournals, vol. 9(3), pages 166-172.
    • Handle: RePEc:eco:journ3:2019-03-20
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    References listed on IDEAS

    as
    1. Ahmad Fadhly Arham, 2014. "Leadership and Performance: The Case of Malaysian SMEs in the Services Sector," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 4(3), pages 343-355, March.
    2. Afriapollo Syafarudin & Bambang Mulyana, 2019. "Formulation Strategy of PT. Bandara Internasional Jawa Barat Bandung Indonesia, Kertajati in Business Aerocity (Aerotropolis)," International Review of Management and Marketing, Econjournals, vol. 9(3), pages 106-111.
    3. Reza Sepahvand & Ali Pirzad & Maryam Rastipour, 2015. "Exploring Servant Leadership Effects on Employees Satisfaction from Work," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 5(1), pages 45-51.
    4. Ahmad Fadhly Arham, 2014. "Leadership and Performance: The Case of Malaysian SMEs in the Services Sector," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 2(3), pages 343-355.
    5. Reza Sepahvand & Ali Pirzad & Maryam Rastipour, 2015. "Exploring Servant Leadership Effects on Employees Satisfaction from Work," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 5(1), pages 45-51, January.
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    Cited by:

    1. Joko Triraharjo & Havidz Aima & Achmad Sutawijaya & Ahmad Badawy Saluy, 2020. "Effect of Transformational Leadership and Breakthrough Leadership on Organizational Performance through the Variable of Employee Satisfaction: A Case Study," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 554-568.

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    More about this item

    Keywords

    Servant Leadership; Breakthrough Leadership; Employee Satisfaction; Organizational Performance.;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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