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The Effect of Transformational Leadership and Competence on Employee Performance with Job Satisfaction as Intervening Variable

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  • Yusuf Ronny Edward
  • Lila Maria Kaban

Abstract

TThis study aims to see and determine the effect of transformational leadership and competence of PT Waruna Shipyard Indonesia on employee performance through job satisfaction as intervening variable. This research was conducted at PT. Waruna Shipyard Indonesia, located on Bagan Deli Street, Medan Belawan District, North Sumatra. This research was conducted of the month of August 2019-January 2020. The data analysis tool by structural equation modeling (SEM) with smartpls program. The population is employees at PT. Waruna Shipyard Indonesia in 2019, namely as many as 134 employees. This study used slovin formula for the sampling, calculations sample were respondents is 100 permanent employees of PT. Waruna Shipyard Indonesia. Thus taken 30 respondents outside of the sample to validity and reliability test instrument for testing questionnaires. Based on structural equation modeling (SEM) analysis, transformational leadership and competence have positive and significant effect on employee performance with job satisfaction as intervening variable at PT. Waruna Shipyard Indonesia. The contribution of transformational leadership, competence, and job satisfaction explains the employee performance variable of 0.724 or 72.40%. The remaining 0.276 or 27.60% is effect by other independent variables not examined in this study. In effect, it could be said that size of Nigerian financial system is small. So, we recommend that government should enable institutional environment that foster relationship between authorities of fiscal and monetary policies.

Suggested Citation

  • Yusuf Ronny Edward & Lila Maria Kaban, 2020. "The Effect of Transformational Leadership and Competence on Employee Performance with Job Satisfaction as Intervening Variable," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(2), pages 62-72, June.
    • Handle: RePEc:khe:scajes:v:6:y:2020:i:2:p:62-72
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    Citations

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    Cited by:

    1. Raquel M. Navarez & Alvin O. Cayogyog & Clint E. Plaza & Kenneth Jan M. Quilario & Jestoni P. Aligway & Jaymar E. Prusas, 2024. "The Mediating Role of Motivation on the Relationship between Transformational Leadership and Work Performance of Teachers from Sta. Josefa District," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(8), pages 1461-1477, August.

    More about this item

    Keywords

    Transformational Leadership; Competence; Employee Performance; Job Satisfaction;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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