The Role of Organizational Compatibility in Mediating and Moderating Knowledge-Oriented Leadership on Employee Performance

Abstract

Purpose: This study aims to identify and analyze the role of organizational fit in mediating and moderating knowledge-oriented leadership on employee performance. Theoretical framework: Research on the factors that influence employee performance has been carried out a lot. Organizations need to seek the application of knowledge-oriented leadership and organizational compatibility as important factors affecting employee performance. This leadership encourages innovation, creativity, and continuous learning, so that it can improve employee performance in the long term, (Ismail Al‐Alawi, Yousif Al‐Marzooqi and Fraidoon Mohammed, 2007; Hermastho, 2021). Furthermore, organizations that have a high level of compatibility tend to have employees who are more satisfied and motivated in doing their jobs, (Kristof, 1996; Hidayat, Tjahjono and Fauziyah, 2017). Design/methodology/approach: The object of this research is the Padang City Regional Secretariat Office with a total of 222 respondents. The research data is primary data collected through questionnaires relating to all research variables. The research model is Structural Equation Modeling (SEM) by processing data using smart pls 3. Findings: The results of the hypothesis conclude, knowledge-oriented leadership has a strong and significant effect on organizational suitability and employee performance at the Padang City Regional Secretariat. The mediating effect of organizational fit is a factor that strengthens employee performance. However, organizational compability does not moderate the influence of Knowledge Oriented Leadership on employee performance. Research, Practical & Social implications: Research findings can be useful for organizations to maximize knowledge-oriented leadership and organizational compatibility to improve employee performance, both directly and indirectly. Originality/value: Organizational Compatibility is an important factor in strengthening or mediating knowledge-oriented leadership to improve employee performance. However, Organizational Compatibility does not moderate knowledge-oriented leadership to improve performance. This is due to the suitability of the characteristics between the organization and employees is not fulfilled either in quantity or quality.