Analysis of the Effect of Transformational Leadership, Job Satisfaction, and Employee Engagement on Company Performance: A Study on Manufacturing Industry in Jakarta

Authors

  • Mislan Sihite Universitas Methodist Indonesia
  • Agus Yulistiyono Universitas Muhammadiyah Tangerang
  • KRT. Akhir Lusono Universitas Proklamasi 45 Yogyakarta
  • Eva Yuniarti Utami Universitas Sebelas Maret

DOI:

https://doi.org/10.58812/wsbm.v1i05.469

Keywords:

Transformational leadership, Job satisfaction, Employee engagement, Company performance, Manufacturing industry, Jakarta

Abstract

This research investigates the dynamic interplay between transformational leadership, job satisfaction, employee engagement, and company performance within the manufacturing industry in Jakarta. A comprehensive quantitative analysis involving a sample of 250 participants reveals crucial insights into the relationships among these key variables. The results highlight the significant and positive impact of transformational leadership, job satisfaction, and employee engagement on company performance. The study employs structural equation modeling to assess the measurement and structural models, providing a robust foundation for understanding the complex organizational dynamics in the context of Jakarta's manufacturing sector. The findings contribute to both theoretical frameworks and practical implications for organizational leaders, fostering a deeper understanding of the factors that drive success in this industry.

References

T. C. Kusuma, R. Nurcahyo, and M. Dachyar, “Analysis of The Effect of Workload on Work Stress Level in Indonesia Manufacturing Industry,” 2022.

N. A. P. Harahap, F. Al Qadri, D. I. Y. Harahap, M. Situmorang, and S. Wulandari, “Analisis Perkkembangan Industri Manufaktur Indonesia,” El-Mal J. Kaji. Ekon. Bisnis Islam, vol. 4, no. 5, pp. 1444–1450, 2023.

S. T. Wahyuni and D. Christine, “Pengaruh Penjualan dan Beban Pokok Penjualan Terhadap Laba Bersih:(Studi Empiris Pada Perusahaan Manufaktur Sektor Industri Dasar & Kimia yang Terdaftar di Bursa Efek Indonesia Periode 2018-2021),” Own. Ris. dan J. Akunt., vol. 7, no. 2, pp. 1553–1568, 2023.

C. Cahyaningratri and M. Naylah, “The effect of supply chain operational capabilities in consolidating organizational compatibility of supply chain process integration and business performance,” Uncertain Supply Chain Manag., vol. 11, no. 1, pp. 95–102, 2023.

F. Amri, “THE EFFECT OF INFLATION, EXCHANGE RATE, LABOR, AND MONEY SUPPLY ON THE MANUFACTURING INDUSTRY SECTOR IN INDONESIA 2011--2020.,” J. Ilmu Ekon. Terap., vol. 7, no. 1, 2022.

C. N. Sarumpaet and E. Tajib, “The Influence of Organizational Culture and Employee Engagement on Employee Performance Through Job Satisfaction of Employees at Pt Generasi Teknologi Buana,” Indones. J. Econ. Manag. Sci., vol. 1, no. 2, pp. 129–142, 2023.

T. K. Ningrum, Z. D. Widodo, and L. Sumarto, “ANALISIS PENGARUH KEPEMIMPINAN, DISIPLIN KERJA DAN MOTIVASI TERHADAP KINERJA KARYAWAN PT BATIK KERIS DI SURAKARTA,” Publik J. Manaj. Sumber Daya Manusia, Adm. dan Pelayanan Publik, vol. 10, no. 2, pp. 4023–4032, 2023.

A. Samsir and A. Muis, “The Effect of Transformational Leadership and Organizational Culture Through Job Satisfaction and Work Motivation on Employee Performance,” Int. J. Educ. Adm. Manag. Leadersh., pp. 45–56, 2023.

I. Fahrizal, B. Santoso, and A. Budiono, “Unlocking Work Engagement: How Leadership and Total Rewards Impact Employee Work Engagement Through the Mediating Role of Service Climate in Supply Chain and Logistic Company in Indonesia,” J. Pamator J. Ilm. Univ. Trunojoyo, vol. 16, no. 2, 2023.

H. D. S. Budiono, R. Nurcahyo, and M. Habiburrahman, “Relationship between manufacturing complexity, strategy, and performance of manufacturing industries in Indonesia,” Heliyon, vol. 7, no. 6, 2021.

A. F. Aritenang, “The contribution of foreign investment and industrial concentration to firm competitiveness in Jakarta Megacity,” Cities, vol. 113, p. 103152, 2021.

G. S. Indraprahasta and B. Derudder, “The geographically variegated connections of the Jakarta metropolitan area as produced by manufacturing firms,” Growth Change, vol. 50, no. 2, pp. 705–724, 2019.

G. S. Indraprahasta, B. Derudder, and J. Koelemaij, “Global-local dynamics in the transformation of the Jakarta metropolitan area into a global city-region,” disP-The Plan. Rev., vol. 54, no. 3, pp. 52–62, 2018.

A. A. Kurnia, E. Rustiadi, A. Fauzi, A. E. Pravitasari, I. Saizen, and J. Ženka, “Understanding industrial land development on rural-urban land transformation of Jakarta Megacity’s outer suburb,” Land, vol. 11, no. 5, p. 670, 2022.

A. P. Wardana and H. U. Anisah, “The Influence of Transformational Leadership on Employee Performance Through Intrinsic Motivation and Organizational Citizenship Behavior as Intervening Variables: Study at the High Religious Court of Jakarta Indonesia,” Open Access Indones. J. Soc. Sci., vol. 6, no. 5, pp. 1129–1141, 2023.

S. Sueb and S. Sopiah, “Exploring the Relationship between Transformational Leadership and Innovative Work Behavior: A Systematic Literature Review,” J. Visi Manaj., vol. 9, no. 2, pp. 62–83, 2023.

I. Gil, G. Berenguer, and A. Cervera, “The roles of service encounters, service value, and job satisfaction in achieving customer satisfaction in business relationships,” Ind. Mark. Manag., vol. 37, no. 8, pp. 921–939, 2008.

A. P. Puryanti, A. Supriyadi, and E. F. Rafikasari, “The Effect of Discipline, Motivation, Work Environment on Employee Performance and Their Impact on Job Satisfaction Employees at Bank Muamalat Tulungagung Branch Office: Pengaruh Disiplin, Motivasi Dan Lingkungan Kerja Terhadap Kinerja Karyawan Serta Dampaknya Terhadap Kepuasan Kerja Karyawan Bank Muamalat Kcp Tulungagung,” El-Qist J. Islam. Econ. Bus., vol. 13, no. 1, pp. 67–82, 2023.

A. H. Memon, S. H. Khahro, N. A. Memon, Z. A. Memon, and A. Mustafa, “Relationship between Job Satisfaction and Employee Performance in the Construction Industry of Pakistan,” Sustainability, vol. 15, no. 11, p. 8699, 2023.

F. Karyati, “THE EFFECT OF SUITABILITY BETWEEN PERSONALITY TYPES AND WORK ENVIRONMENT MODELS ON JOB SATISFACTION,” Int. J. Business, Law, Educ., vol. 4, no. 1, pp. 175–183, 2023.

N. I. S. Ramli, “STUDY OF EMPLOYEE SATISFACTION AGAINST DIFFERENT ASPECTS: A CASE STUDY OF MANUFACTURING INDUSTRY (DRB-HICOM SDN BHD),” Int. J. Humanit. Technol. Civiliz., pp. 35–40, 2022.

N. Kişi, “Bibliometric analysis and visualization of global research on employee engagement,” Sustainability, vol. 15, no. 13, p. 10196, 2023.

M. C. T. Pacquing, “Employee Engagement is the Key: Its Mediating Role between Person–Environment Fit and Organizational Commitment among Filipino Employees,” Makara Hum. Behav. Stud. Asia, vol. 27, no. 1, pp. 1–7, 2023.

M. Viterouli, D. Belias, A. Koustelios, and N. Tsigilis, “Refining Employees’ Engagement by incorporating Self-Directedness in Training and Work Environments,” in Proceedings of the 18th European Conference on Management Leadership and Governance. ACI, 2022.

L. Admasachew and J. Dawson, “Employee Engagement-A brief review of definitions, theoretical perspectives, and measures,” Ast. Bus. Sch. Ast. Univ., 2010.

G. Y. G. Tugade and M. M. Arcinas, “Employees Work Engagement: Correlations with Employee Personal Characteristics, Organizational Commitment and Workplace Happiness,” Int. J. Multidiscip. Appl. Bus. Educ. Res., vol. 4, no. 1, pp. 136–155, 2023.

F. O. Bernando, “Pengaruh Budaya Organisasi dan Disiplin Kerja Terhadap Kinerja Karyawan pada PT. Bernofarm Pharmaceutical Company,” Center for Open Science, 2022.

H. Hartono, T. H. Dwihandoko, and M. Muslimin, “The Influence of Total Quality Management (TQM), Reward Systems, and Performance Measurement Systems on Company Performance through Employee Productive Behavior As Mediation Variables in Garment Companies,” Indones. Interdiscip. J. Sharia Econ., vol. 6, no. 1, pp. 292–312, 2023.

A. Indra, F. H. Asnora, C. H. Limbong, and Z. Zufrie, “The Influence of Transformational Leadership, Job Satisfaction and Employee Organizational Trust on Work Performance,” Daengku J. Humanit. Soc. Sci. Innov., vol. 2, no. 6, pp. 879–885, 2022.

N. Prasastia and S. Zuhriah, “Analysis of physical and non-physical work environment PT. Kakiatna Indonesi to company performance,” J. Econ. Bus. UBS, vol. 8, no. 1, pp. 73–81, 2019.

S. R. Janah and I. N. Qamari, “The mediating role of self-actualization in increasing millennial employee performance.,” EUREKA Soc. Humanit., no. 5, pp. 31–38, 2022.

M. S. A. Basalamah, “The Effect of Transformational Leadership Style and Job Satisfaction on Employee Performance,” Adv. Hum. Resour. Manag. Res., vol. 1, no. 2, 2023.

I. N. Aristana, I. W. E. Arsawan, and I. M. B. Wisnawa, “IMPROVING EMPLOYEE JOB SATISFACTION: DO TRANSFORMATIONAL LEADERSHIP AND ORGANIZATIONAL CULTURE MATTER?,” J. Ekon. Bisnis dan Kewirausahaan, vol. 12, no. 1, 2023.

K. Parku, T. Obuobisa-Darko, and E. A. Asiedu, “Psychological Contract Fulfilment: A Suitable Umpire Between Transformational Leadership and Employee Engagement in the Ghanaian Public Sector,” 2023.

F. Wibowo, F. I. F. S. Putra, M. Izzudien, and S. Sulastri, “Stimbut: Initiation of a Sustainable Business Strategy Model in Improving MSME Capability to Meet Consumer Expectations,” J. Penelit. Ekon. dan Bisnis, vol. 8, no. 1, pp. 1–9, 2023.

D. R. Manel, I. Bani, and F. Hidayat, “Analyzing the Effect of Organizational Commitment, Spiritual Motivation and Spiritual Leadership on Employee Performance through Job Satisfaction,” Int. J. Financ. Econ. Bus., vol. 2, no. 1, pp. 34–43, 2023.

F. Hidayat, S. Sumantri, A. E. Rumengan, C. Wibisono, and M. Khaddafi, “The Effect of Digital Leadership, Information Technology and Digital Competency on Employee Performance in the Digital Era: Mediating Role of Job Satisfaction,” Int. J. Adv. Soc. Sci. Humanit., vol. 2, no. 2, pp. 144–151, 2023.

R. Ramlawati, S. Serlin, A. Arminas, J. Junaidi, and W. Ready, “The role of ethical leadership on employee commitment to the organization: the mediating role of job satisfaction and job engagement,” Организационная психология, vol. 13, no. 1, pp. 73–91, 2023.

Downloads

Published

2023-12-31

How to Cite

Sihite, M., Yulistiyono, A., Lusono, K. A., & Utami, E. Y. (2023). Analysis of the Effect of Transformational Leadership, Job Satisfaction, and Employee Engagement on Company Performance: A Study on Manufacturing Industry in Jakarta. West Science Business and Management, 1(05), 403–411. https://doi.org/10.58812/wsbm.v1i05.469

Issue

Vol. 1 No. 05 (2023): West Science Business and Management

Section

Articles

License

Copyright (c) 2023 Mislan Sihite, Agus Yulistiyono, KRT. Akhir Lusono, Eva Yuniarti Utami

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.