The Role of Transformational Leadership on Employee Performance Through Innovative Work Behavior in a Public Transportation Company

This study delves into the intricate relationship between transformational leadership and innovative work behavior (IWB) on employee performance within the context of a public transportation company. Given the challenges faced by public transportation companies in improving employee performance quality, this study examines both direct and indirect effects mediated by IWB. Utilizing a purposive sampling technique and questionnaires, data were collected from a total of 303 individuals as respondents who are employed by the company. Structural Equation Modeling with Partial Least Squares (SEM-PLS) was employed to analyze the research model. Contrary to expectations, the direct effect analysis reveals that IWB does not significantly influence employee performance. However, transformational leadership was found to positively affect both IWB and employee performance, albeit not affecting employee performance when mediated by IWB. The results indicate that while routine work processes may not always demand innovation, and the enhancement of employee quality is contingent upon transformational leadership. The study advocates for the optimization of transformational leadership within organizations to bolster employee performance. Furthermore, it posits that IWB can be integrated as part of employee performance through the effective implementation of transformational leadership. The suitability of transformational leadership for public transportation companies is underscored, as it is vital for ensuring customer satisfaction and comfort, as well as maintaining the essential triad of excellent service and high transportation quality.