Does Employee Empowerment as a Mediating Variable the Linking of Transformational Leadership on Employee Performance?

Abstract

This study aims to investigate whether employee empowerment (EE) as a mediator variable of the mechanistic pathway of transformational leadership (TL) influences employee performance (EP). A quantitative method was employed. The samples were 109 employees of regional companies in Magetan City, East Java and were collected from questionnaires. SEM-PLS was employed for data analysed. The results showed that transformational leadership directly affects employee performance. Work motivation has a role as a mediator variable from transformational leadership mechanisms to employee performance. Meanwhile, employee empowerment does not have a role as a mediator variable in the path of transformational leadership mechanisms on employee performance. The mediating role of employee empowerment in the mechanistic pathway is still contradictory. Therefore, the investigation of employee empowerment as a mediator variable in the mechanism is still recommended for future research.
 Keywords— Employee Empowerment; Employee Performance; Transformational Leadership; Work Motivation