The Effect Organizational Culture as a Mediation of Transformational Leadership to Smes Organization Performance in Malang City - East Java (Study on Small Food and Drink)
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 6
Abstract
Purpose - The objective of this study to explain the organizational culture as a mediation of transformational leadership on small business enterprice performance. In addition, analyze and explain the direct influence of transformational leadership on small business enterprice performance. Methodology - There are 270 small business enterprice in Malang - East Java - Indonesia as the study sample. The method used was a survey. The leader of small business entrepreneurs as research respondents.Analysis using multivariate statistical methods SEM (Structural Equation Modeling). Research Findings - The result of statistical test of the influence of the standardized positive value 0.078 and the significance value (p) of the SMEs in the model of structural equation is not significant, with the value of the coefficient of the standardized positive value 0.078 and the significance value (p) of 0.191 is greater than 0.05. The direct influence of the transformational leadership on a positive organizational culture of 0.304 with a significance value (p) of 0.000 less than the alpha significance level of 0.05. The effect of organizational culture on the SME organization performance is positive 0,546 with a significance value (p) of 0.000 less than alpha significance level of 0.05. The result of testing of coefficient (standardized) equal to 0,078 direct influence of transformational leadership to the organization performance of SME have insignificant influence, while organizational culture is able to mediate transformational leadership role in improving organization performance of SME have coefficient (standardized) equal to 0304 X 0.546 = 0.166, not directly more important than direct influence. The more successful the transformational leadership the better the SMEs organizational performance.
Authors and Affiliations
Lusi Endang Sri Darmawati, Nazief Nirwanto, Edi Subiyantoro
Keywords
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- EP ID EP411674
- DOI 10.9790/487X-2006050612.
- Views 58
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