The Role of Transformational Leadership on Employee Performance Through Organizational Learning Culture and Intrinsic Work Motivation

Abstract

When organizations devote various resources to increase its effectiveness and growth, leaders continue to think about the best ways to motivate employees to work more effectively and efficiently. Therefore, this study examines the following questions: (a) the extent to which transformational leadership affects organizational learning culture, intrinsic work motivation, and employee performance? (b) the extent to which organizational learning culture affects employee performance? and (c) the extent to which intrinsic work motivation affects employee performance? Using a questionnaire distributed online to employees at a community health center in Riau island – Indonesia, data were collected and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM) employing SmartPLS 3.0 software. The results of the study prove that (a) transformational leadership directly and significantly affects organizational learning culture, intrinsic work motivation, and employee performance, (b) organizational learning culture directly has no significant effect on employee performance, and (c) intrinsic work motivation directly and significantly affects employee performance. The findings and implications of this study indicate that intrinsic work motivation indirectly plays an important role in linking transformational leadership and employee performance.