The Role of Digital Leadership and Knowledge Management in Realizing the Digital Transformation of the Directorate General of Taxes with Organizational Agility as Mediation and Digital Culture as Moderation

Ilusstration by AI

FORMOSA NEWS

Padang— Transformational Leadership and Organizational Culture Drive Employee Performance in Indonesian Companies. Research conducted by Ahmad Agus Prayitno, Rino was published in January 2026 in the International Journal of Business and Applied Economics (IJBAE).

Research conducted by Ahmad Agus Prayitno, Rino shows that inspirational leadership styles and positive work cultures directly strengthen employee productivity, commitment, and work quality. These findings are important because companies face competitive pressures and increasingly dynamic changes in the work environment.

Transformational leadership refers to a leadership style that inspires employees through vision, encouragement, innovation, and personal attention. Leaders of this type motivate teams not just through authority, but through influence and shared goals. Organizational culture, on the other hand, reflects the shared values, norms, and work habits that shape daily behavior within a company. Together, leadership and culture create the environment that shapes employee attitudes and performance.

How the Study Was Conducted

The researchers applied a quantitative survey approach involving employees actively working in corporate settings. Respondents provided information through structured questionnaires measuring their perceptions of their supervisors’ leadership style, the organizational culture in their workplace, and their own job performance levels.

Statistical analysis was used to examine the relationships among these factors. The model demonstrated strong explanatory power, indicating that leadership and organizational culture variables reliably account for differences in employee performance outcomes. This confirms that internal workplace dynamics play a measurable role in shaping productivity

Key Findings

The study revealed several important conclusions:

1. Transformational leadership has a significant positive effect on employee performance.
Leaders who communicate a clear vision, offer support, and encourage innovation help employees work more effectively and with higher motivation. Employees under such leadership tend to show stronger initiative and responsibility.

2. Organizational culture also shows a significant positive influence.
Work environments that promote collaboration, openness, professionalism, and mutual respect foster greater commitment and accountability among employees.

3. Leadership and culture reinforce each other.
The strongest performance outcomes occur when visionary leadership is supported by a healthy organizational culture. When both elements align, productivity levels exceed situations where only one factor is strong.

4. Human factors remain strategic assets.
The research highlights that investment in leadership development and cultural strengthening produces tangible performance gains, making people-centered strategies essential for organizational success.

Why This Matters for Business

For companies, the findings underscore the importance of leadership development programs. Training managers and supervisors in communication skills, emotional intelligence, and motivational techniques can significantly enhance team performance. Leadership is not only about directing tasks but about shaping attitudes and engagement.

Strengthening organizational culture also becomes a strategic priority. Clear values, transparent communication, and supportive work environments encourage employees to contribute beyond minimum requirements. Companies that cultivate trust and shared purpose often experience lower turnover and stronger innovation capacity.

From a broader economic perspective, productive and engaged employees contribute to national competitiveness. Organizations with effective leadership and strong cultures are better positioned to adapt to change, adopt new technologies, and maintain sustainable growth.

Implications for Education and Policy

The study also carries implications for higher education, particularly in business and management programs. Leadership and organizational behavior should remain core subjects, as future managers must understand how human dynamics influence performance outcomes.

For policymakers and human resource practitioners, the findings suggest that improving workplace quality can indirectly support productivity at the national level. Encouraging corporate practices that value leadership development and healthy workplace cultures can strengthen the labor force as a whole.

Researchers from Bunda Mulia University emphasize that leadership which inspires and organizational cultures that support growth create environments where individuals and organizations develop together. This synergy, they note, is key to maintaining performance in times of rapid change.

Researcher Profiles

• Ahmad Agus Prayitno, Rino- Universitas Negeri Padang
• Rino Rino – Universitas Negeri Padang

Research Source

Ahmad Agus Prayitno, Rino. Transformational Leadership and Organizational Culture on Employee Performance.

International Journal of Business and Applied Economics (IJBAE), Vol. 5 No. 1, 2026.
DOI: https://doi.org/10.55927/ijbae.v5i1.579

URL Resmi: https://nblformosapublisher.org/index.php/ijbae