The impact of transformational leadership on employee performance and organizational citizenship behavior

https://doi.org/10.35912/ahrmr.v5i3.2859
Published: Sep 30, 2025

Abstract:

Purpose: This study investigates the influence of transformational leadership, organizational culture, and the implementation of paperless services on Organizational Citizenship Behavior (OCB) and employee performance within the Regional Financial and Asset Management Agency of East Java Province.

Methodology: A quantitative approach was employed, involving 122 employees surveyed through a census sampling technique. Data were collected using Likert-scale questionnaires and validated with Pearson’s product-moment correlation, while reliability was tested with Cronbach’s Alpha. Structural Equation Modelling (SEM) using AMOS and SPSS 20.0 was applied to examine the relationships among variables.

Results: The Findings indicate that transformational leadership, organizational culture, and paperless service implementation significantly and directly enhance OCB and employee performance. However, OCB does not act as a mediator between these factors and performance. The study confirms that strong leadership, a supportive culture, and digital transformation initiatives are critical to improving employee outcomes.

Conclusions: The research highlights that employee performance can be optimized through leadership that inspires, organizational values that reinforce cooperation, and technology that streamlines services. OCB plays a direct role in strengthening performance but does not moderate the effects of the other variables.

Limitations: This study was conducted within a single government agency, which may limit the generalizability of the findings. The exclusive focus on internal organizational variables may also overlook other external factors affecting employee performance.

Contribution: This study contributes to developing human resource management literature in the public sector by examining how leadership style, organizational culture, and digital transformation initiatives such as paperless services impact employee performance and OCB.

Keywords:
1. Employee Performance
2. Organizational Citizenship Behavior (OCB)
3. Organizational Culture
4. Paperless Service
5. Transformational Leadership
Authors:
Wanda Gema Prasadio Akbar Hidayat
Universitas Multimedia Nusantara, Banten, Indonesia
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How to Cite
Hidayat, W. G. P. A. (2025). The impact of transformational leadership on employee performance and organizational citizenship behavior. Annals of Human Resource Management Research, 5(3), 341–353. https://doi.org/10.35912/ahrmr.v5i3.2859
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Vol. 5 No. 3 (2025): September
Articles
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References

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    Baig, M. I., & Yadegaridehkordi, E. (2023). Exploring Moderating Effects of Industry 4.0 Adoption on Sustainable Performance of Malaysian Manufacturing Organizations. Journal of Industrial and Production Engineering, 40(4), 271-286. doi:https://doi.org/10.1080/21681015.2023.2190766

    Basco, R., Hair Jr, J. F., Ringle, C. M., & Sarstedt, M. (2022). Advancing Family Business Research Through Modeling Nonlinear Relationships: Comparing PLS-SEM and Multiple Regression. Journal of Family Business Strategy, 13(3). doi:https://doi.org/10.1016/j.jfbs.2021.100457

    Batool, S., Ibrahim, H. I., & Adeel, A. (2024). How Responsible Leadership Pays Off: Role of Organizational Identification and Organizational Culture for Creative Idea Sharing. Sustainable Technology and Entrepreneurship, 3(2), 1-9. doi:https://doi.org/10.1016/j.stae.2023.100057

    Bayraktar, S., & Jiménez, A. (2025). Exploring The Curvilinear Relationship Between Lmx And Negative Affect During Organizational Change: Can Transformational Leadership Brighten The Dark Corners? Journal of Organizational Change Management, 38(3), 587-604. doi:https://doi.org/10.1108/jocm-11-2024-0743

    Dyck, B., Walker, K., & Caza, A. (2019). Antecedents Of Sustainable Organizing: A Look At The Relationship Between Organizational Culture And The Triple Bottom Line. Journal of Cleaner Production, 231, 1235-1247. doi:https://doi.org/10.1016/j.jclepro.2019.05.287

    Franco, C., & Landini, F. (2022). Organizational Drivers of Innovation: The Role of Workforce Agility. Research policy, 51(2). doi:https://doi.org/10.1016/j.respol.2021.104423

    Guo, R., Yin, H., & Liu, X. (2023). Coopetition, Organizational Agility, And Innovation Performance In Digital New Ventures. Industrial Marketing Management, 111, 143-157. doi:https://doi.org/10.1016/j.indmarman.2023.04.003

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    Lathabhavan, R., & Mehendale, S. (2025). Employee Satisfaction During The Transition From Work From Home To Hybrid Workplace: Exploring The Role Of Mindfulness. Mental Health and Social Inclusion, 29(4), 448–458. doi:https://doi.org/10.1108/mhsi-12-2024-0216

    Liu, C.-H., Lin, W.-P., Ng, Y.-L., Hsieh, A.-L., & Lin, J.-Y. (2024). The Relevance of Vision Sharing and Innovative Behavior on Transformational Leadership, Charismatic Influence and Organizational Citizenship Behavior (OCB). International Journal of Hospitality Management, 123. doi:https://doi.org/10.1016/j.ijhm.2024.103891

    Long, Y., & Xia, Y. (2025). Leveraging Transformational and Instructional Leadership for Teacher Professional Development: A Dual-Mediation Model of Teacher Self-Efficacy and Organisational Culture. Teaching and Teacher Education, 164. doi:https://doi.org/10.1016/j.tate.2025.105087

    Ma, Y., Teng, Y., & Yan, B. (2025). How Hospitality Employees’ Pro-Environmental Behavior Negatively Affects Organizational Citizenship Behaviors: The Multilevel Moderating Effect Of Green Transformational Leadership. Leadership & Organization Development Journal, 46(5), 718-737. doi:https://doi.org/10.1108/lodj-11-2024-0736

    Mahroof, J., Rafi, A., & Ahmad, A. (2025). Talent Management during Digital Transformation: Role of Transformational Leadership and Resistance to Change. Technology in society, 83. doi:https://doi.org/10.1016/j.techsoc.2025.102964

    Marlow, D. (1996). Transformational Leadership. Radiology Management, 18(5), 51-53.

    Moreno-Domínguez, M.-J., Escobar-Rodríguez, T., Pelayo-Díaz, Y.-M., & Tovar-García, I. (2024). Organizational Culture and Leadership Style in Spanish Hospitals: Effects on Knowledge Management and Efficiency. Heliyon, 10(20), 1-22. doi:https://doi.org/10.1016/j.heliyon.2024.e39216

    Muslu, A. (2025). Innovation Management's Effect on Small-Medium Yacht Tourism Supply Enterprises' Organizational Performance. Research in Transportation Business & Management, 63, 1-10. doi:https://doi.org/10.1016/j.rtbm.2025.101476

    Nguyen, N. P., Hang, N. T. T., Hiep, N., & Flynn, O. (2023). Does Transformational Leadership Influence Organisational Culture and Organisational Performance: Empirical Evidence from an Emerging Country. IIMB Management Review, 35(4), 382-392. doi:https://doi.org/10.1016/j.iimb.2023.10.001

    Peng, J., Peng, Z., Lei, S., & Xie, L. (2024). Family-Customer Happiness and its Impact on Customer Citizenship Behavior: A Study of Parent–Child Consumption in Robot Restaurants. Tourism Management Perspectives, 53. doi:https://doi.org/10.1016/j.tmp.2024.101273

    Pham, T. P., Nguyen, T. V., Nguyen, P. V., & Ahmed, Z. U. (2024). The Pathways to Innovative Work Behavior and Job Performance: Exploring the Role of Public Service Motivation, Transformational Leadership, and Person-Organization Fit in Vietnam's Public Sector. Journal of Open Innovation: Technology, Market, and Complexity, 10(3), 1-12. doi:https://doi.org/10.1016/j.joitmc.2024.100315

    Priatna, D. K., Farooq, K., Yusliza, M., Muhammad, Z., Alkaf, A. R., & Siswanti, I. (2025). Employee Ecological Behavior Through Green Transformational Leadership: The Mediating Role Of Green Hrm Practices And Green Organizational Climate. Journal of Management Development, 44(3), 348-373. doi:https://doi.org/10.1108/jmd-05-2024-0159

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    Sharma, R. K., & Kaur, S. (2024). Analysing the mediating role of organisational citizenship behaviour between transformational leadership and education 4.0 using PLS-SEM approach. International Journal of Educational Management, 38(2), 391-412.

    Sharma, S., Albishri, N., Zafar, H., Singhal, A. B., & Singh, G. (2025). Shades of Green and Transformational Leadership: Predicting Employees' Green Creativity and Green Work Engagement at Work. Acta Psychologica, 259, 1-13. doi:https://doi.org/10.1016/j.actpsy.2025.105393

    Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J.-H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive Model Assessment In PLS-SEM: Guidelines For Using Plspredict. European Journal of Marketing, 53(11), 2322-2347. doi:https://doi.org/10.1108/ejm-02-2019-0189

    Sriharan, A., Sekercioglu, N., Mitchell, C., Senkaiahliyan, S., Hertelendy, A., Porter, T., & Banaszak-Holl, J. (2024). Leadership for AI Transformation in Health Care Organization: Scoping Review. Journal of Medical Internet Research, 26, 1-14. doi:https://doi.org/10.2196/54556

    Srivastava, S., Pathak, D., Soni, S., & Dixit, A. (2024). Does Green Transformational Leadership Reinforce Green Creativity? The Mediating Roles Of Green Organizational Culture And Green Mindfulness. Journal of Organizational Change Management, 37(3), 619-640. doi:https://doi.org/10.1108/jocm-09-2023-0364

    Wamba, S. F. (2022). Impact of Artificial Intelligence Assimilation on Firm Performance: The Mediating Effects of Organizational Agility and Customer Agility. International Journal of Information Management, 67. doi:https://doi.org/10.1016/j.ijinfomgt.2022.102544

    Waseem, F., Mirza, M. Z., Memon, M. A., & Naseem, A. (2025). Unlocking Job Performance: The Role Of Transformational Leadership, Amo Framework And Green Hrm. Industrial and Commercial Training, 57(3), 309-328. doi:https://doi.org/10.1108/ict-07-2024-0061

    Yesilirmak, A. C., Tayfur Ekmekci, O., & Bayhan Karapinar, P. (2023). Desire To Work With Woman Manager: Interplay Between Sexism And Organizational Culture. Gender in Management: An International Journal, 38(5), 581-598. doi:https://doi.org/10.1108/gm-07-2021-0225

    Zheng, Y., Gao, Y. L., & Thomas, N. (2025). Enhancing Tourism and Hospitality Organizations’ ESG Via Transformational Leadership and Employee Pro-Environmental Behavior: The Effect of Organizational Culture. International Journal of Hospitality Management, 124. doi:https://doi.org/10.1016/j.ijhm.2024.103970

    Zumitzavan, V., Prachumrasee, K., & Pathak, S. (2025). Transformational Leadership Cultivating Innovation and Transparency in Local Government Organisations, Thailand. Journal of Open Innovation: Technology, Market, and Complexity, 11(3), 1-12. doi:https://doi.org/10.1016/j.joitmc.2025.100626

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  2. Alamsjah, F., & Yunus, E. N. (2022). Achieving Supply Chain 4.0 and the Importance of Agility, Ambidexterity, and Organizational Culture: A Case of Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8(2), 1-23. doi:https://doi.org/10.3390/joitmc8020083
  3. Ali, Y., Uddin, A., & Petrillo, A. (2024). The Impact of Government Support and Organizational Culture on Sustainable Performance: Unveiling the Mediating Role of Circular Economy and Eco-Innovation. Sustainable Futures, 8, 1-12. doi:https://doi.org/10.1016/j.sftr.2024.100346
  4. Baig, M. I., & Yadegaridehkordi, E. (2023). Exploring Moderating Effects of Industry 4.0 Adoption on Sustainable Performance of Malaysian Manufacturing Organizations. Journal of Industrial and Production Engineering, 40(4), 271-286. doi:https://doi.org/10.1080/21681015.2023.2190766
  5. Basco, R., Hair Jr, J. F., Ringle, C. M., & Sarstedt, M. (2022). Advancing Family Business Research Through Modeling Nonlinear Relationships: Comparing PLS-SEM and Multiple Regression. Journal of Family Business Strategy, 13(3). doi:https://doi.org/10.1016/j.jfbs.2021.100457
  6. Batool, S., Ibrahim, H. I., & Adeel, A. (2024). How Responsible Leadership Pays Off: Role of Organizational Identification and Organizational Culture for Creative Idea Sharing. Sustainable Technology and Entrepreneurship, 3(2), 1-9. doi:https://doi.org/10.1016/j.stae.2023.100057
  7. Bayraktar, S., & Jiménez, A. (2025). Exploring The Curvilinear Relationship Between Lmx And Negative Affect During Organizational Change: Can Transformational Leadership Brighten The Dark Corners? Journal of Organizational Change Management, 38(3), 587-604. doi:https://doi.org/10.1108/jocm-11-2024-0743
  8. Dyck, B., Walker, K., & Caza, A. (2019). Antecedents Of Sustainable Organizing: A Look At The Relationship Between Organizational Culture And The Triple Bottom Line. Journal of Cleaner Production, 231, 1235-1247. doi:https://doi.org/10.1016/j.jclepro.2019.05.287
  9. Franco, C., & Landini, F. (2022). Organizational Drivers of Innovation: The Role of Workforce Agility. Research policy, 51(2). doi:https://doi.org/10.1016/j.respol.2021.104423
  10. Guo, R., Yin, H., & Liu, X. (2023). Coopetition, Organizational Agility, And Innovation Performance In Digital New Ventures. Industrial Marketing Management, 111, 143-157. doi:https://doi.org/10.1016/j.indmarman.2023.04.003
  11. Hair, J. F., Astrachan, C. B., Moisescu, O. I., Radomir, L., Sarstedt, M., Vaithilingam, S., & Ringle, C. M. (2021). Executing and Interpreting Applications of PLS-SEM: Updates for family Business Researchers. Journal of Family Business Strategy, 12(3). doi:https://doi.org/10.1016/j.jfbs.2020.100392
  12. Hermanto, Y. B., Srimulyani, V. A., & Pitoyo, D. J. (2024). The Mediating Role of Quality of Work Life and Organizational Commitment in the Link Between Transformational Leadership and Organizational Citizenship Behavior. Heliyon, 10(6). doi:https://doi.org/10.1016/j.heliyon.2024.e27664
  13. Hoang, T. N., & Le, P. B. (2025). The Influence Of Transformational Leadership On Knowledge Sharing Of Teachers: The Roles Of Knowledge-Centered Culture And Perceived Organizational Support. The Learning Organization, 32(2), 328-349. doi:https://doi.org/10.1108/tlo-08-2023-0144
  14. Khattak, S. I., Ali, M. I., Khan, M. M. A., & Kakar, A. S. (2025). Does Digital Leadership Capability, Knowledge Management Capability, and Organizational Agility Foster Digital Transformation in China? A Time-Lagged Survey-Based Assessment in Digital Transformation Projects. Journal of Engineering and Technology Management, 76. doi:https://doi.org/10.1016/j.jengtecman.2025.101873
  15. Klein, G. (2023). Transformational and Transactional Leadership, Organizational Support and Environmental Competition Intensity as Antecedents of Intrapreneurial Behaviors. European Research on Management and Business Economics, 29(2), 1-11. doi:https://doi.org/10.1016/j.iedeen.2023.100215
  16. Krutova, O. (2025). Part-Time Work, Job Satisfaction, Employee Well-Being And Organisational Restructuring. International Journal of Sociology and Social Policy, 45 (5-6), 511–528. doi:https://doi.org/10.1108/ijssp-01-2025-0004
  17. Lathabhavan, R., & Mehendale, S. (2025). Employee Satisfaction During The Transition From Work From Home To Hybrid Workplace: Exploring The Role Of Mindfulness. Mental Health and Social Inclusion, 29(4), 448–458. doi:https://doi.org/10.1108/mhsi-12-2024-0216
  18. Liu, C.-H., Lin, W.-P., Ng, Y.-L., Hsieh, A.-L., & Lin, J.-Y. (2024). The Relevance of Vision Sharing and Innovative Behavior on Transformational Leadership, Charismatic Influence and Organizational Citizenship Behavior (OCB). International Journal of Hospitality Management, 123. doi:https://doi.org/10.1016/j.ijhm.2024.103891
  19. Long, Y., & Xia, Y. (2025). Leveraging Transformational and Instructional Leadership for Teacher Professional Development: A Dual-Mediation Model of Teacher Self-Efficacy and Organisational Culture. Teaching and Teacher Education, 164. doi:https://doi.org/10.1016/j.tate.2025.105087
  20. Ma, Y., Teng, Y., & Yan, B. (2025). How Hospitality Employees’ Pro-Environmental Behavior Negatively Affects Organizational Citizenship Behaviors: The Multilevel Moderating Effect Of Green Transformational Leadership. Leadership & Organization Development Journal, 46(5), 718-737. doi:https://doi.org/10.1108/lodj-11-2024-0736
  21. Mahroof, J., Rafi, A., & Ahmad, A. (2025). Talent Management during Digital Transformation: Role of Transformational Leadership and Resistance to Change. Technology in society, 83. doi:https://doi.org/10.1016/j.techsoc.2025.102964
  22. Marlow, D. (1996). Transformational Leadership. Radiology Management, 18(5), 51-53.
  23. Moreno-Domínguez, M.-J., Escobar-Rodríguez, T., Pelayo-Díaz, Y.-M., & Tovar-García, I. (2024). Organizational Culture and Leadership Style in Spanish Hospitals: Effects on Knowledge Management and Efficiency. Heliyon, 10(20), 1-22. doi:https://doi.org/10.1016/j.heliyon.2024.e39216
  24. Muslu, A. (2025). Innovation Management's Effect on Small-Medium Yacht Tourism Supply Enterprises' Organizational Performance. Research in Transportation Business & Management, 63, 1-10. doi:https://doi.org/10.1016/j.rtbm.2025.101476
  25. Nguyen, N. P., Hang, N. T. T., Hiep, N., & Flynn, O. (2023). Does Transformational Leadership Influence Organisational Culture and Organisational Performance: Empirical Evidence from an Emerging Country. IIMB Management Review, 35(4), 382-392. doi:https://doi.org/10.1016/j.iimb.2023.10.001
  26. Peng, J., Peng, Z., Lei, S., & Xie, L. (2024). Family-Customer Happiness and its Impact on Customer Citizenship Behavior: A Study of Parent–Child Consumption in Robot Restaurants. Tourism Management Perspectives, 53. doi:https://doi.org/10.1016/j.tmp.2024.101273
  27. Pham, T. P., Nguyen, T. V., Nguyen, P. V., & Ahmed, Z. U. (2024). The Pathways to Innovative Work Behavior and Job Performance: Exploring the Role of Public Service Motivation, Transformational Leadership, and Person-Organization Fit in Vietnam's Public Sector. Journal of Open Innovation: Technology, Market, and Complexity, 10(3), 1-12. doi:https://doi.org/10.1016/j.joitmc.2024.100315
  28. Priatna, D. K., Farooq, K., Yusliza, M., Muhammad, Z., Alkaf, A. R., & Siswanti, I. (2025). Employee Ecological Behavior Through Green Transformational Leadership: The Mediating Role Of Green Hrm Practices And Green Organizational Climate. Journal of Management Development, 44(3), 348-373. doi:https://doi.org/10.1108/jmd-05-2024-0159
  29. Ridic, O., Palalic, R., Jukic, T., Busatlic, S., Aidoo, A. W., Ridic, G., & Managafic, J. (2026). Transformational Leadership. International Encyclopedia of Business Management (First Edition), 1, 112-118. doi:https://doi.org/10.1016/B978-0-443-13701-3.00105-5
  30. Sharma, R. K., & Kaur, S. (2024). Analysing the mediating role of organisational citizenship behaviour between transformational leadership and education 4.0 using PLS-SEM approach. International Journal of Educational Management, 38(2), 391-412.
  31. Sharma, S., Albishri, N., Zafar, H., Singhal, A. B., & Singh, G. (2025). Shades of Green and Transformational Leadership: Predicting Employees' Green Creativity and Green Work Engagement at Work. Acta Psychologica, 259, 1-13. doi:https://doi.org/10.1016/j.actpsy.2025.105393
  32. Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J.-H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive Model Assessment In PLS-SEM: Guidelines For Using Plspredict. European Journal of Marketing, 53(11), 2322-2347. doi:https://doi.org/10.1108/ejm-02-2019-0189
  33. Sriharan, A., Sekercioglu, N., Mitchell, C., Senkaiahliyan, S., Hertelendy, A., Porter, T., & Banaszak-Holl, J. (2024). Leadership for AI Transformation in Health Care Organization: Scoping Review. Journal of Medical Internet Research, 26, 1-14. doi:https://doi.org/10.2196/54556
  34. Srivastava, S., Pathak, D., Soni, S., & Dixit, A. (2024). Does Green Transformational Leadership Reinforce Green Creativity? The Mediating Roles Of Green Organizational Culture And Green Mindfulness. Journal of Organizational Change Management, 37(3), 619-640. doi:https://doi.org/10.1108/jocm-09-2023-0364
  35. Wamba, S. F. (2022). Impact of Artificial Intelligence Assimilation on Firm Performance: The Mediating Effects of Organizational Agility and Customer Agility. International Journal of Information Management, 67. doi:https://doi.org/10.1016/j.ijinfomgt.2022.102544
  36. Waseem, F., Mirza, M. Z., Memon, M. A., & Naseem, A. (2025). Unlocking Job Performance: The Role Of Transformational Leadership, Amo Framework And Green Hrm. Industrial and Commercial Training, 57(3), 309-328. doi:https://doi.org/10.1108/ict-07-2024-0061
  37. Yesilirmak, A. C., Tayfur Ekmekci, O., & Bayhan Karapinar, P. (2023). Desire To Work With Woman Manager: Interplay Between Sexism And Organizational Culture. Gender in Management: An International Journal, 38(5), 581-598. doi:https://doi.org/10.1108/gm-07-2021-0225
  38. Zheng, Y., Gao, Y. L., & Thomas, N. (2025). Enhancing Tourism and Hospitality Organizations’ ESG Via Transformational Leadership and Employee Pro-Environmental Behavior: The Effect of Organizational Culture. International Journal of Hospitality Management, 124. doi:https://doi.org/10.1016/j.ijhm.2024.103970
  39. Zumitzavan, V., Prachumrasee, K., & Pathak, S. (2025). Transformational Leadership Cultivating Innovation and Transparency in Local Government Organisations, Thailand. Journal of Open Innovation: Technology, Market, and Complexity, 11(3), 1-12. doi:https://doi.org/10.1016/j.joitmc.2025.100626