Abstract
Promoting SMEs is the right step to develop the community's economy, and empowerment is the right way. This study aims to examine the role of psychological empowerment as a mediator on the influence of transformational leaders in forming Organizational Citizenship Behavior (OCB) of their subordinates. The study used 4 SMEs in Kabupaten Bantul and Sleman as population and used saturated sampling technique. Data were collected from employees using a closed questionnaire instrument. The research findings have managerial implications that SMEs need to strengthen employee OCB through psychological empowerment.
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