The influence of organizational culture and transformational leadership on employee performance PT. Epson in the digital era

https://doi.org/10.35912/ahrmr.v5i3.3061
Published: Sep 19, 2025

Abstract:

Purpose: This study aims to analyze the influence of organizational culture and transformational leadership on employee performance in the digital era.

Methodology: This study uses a quantitative method with a survey approach; data were collected through questionnaires from 150 respondents who are employees at PT. Epson. Data analysis was carried out using multiple linear regression to test the relationship between variables.

Results: This study proves that organizational culture and transformational leadership have a positive and significant influence on employee performance, including in the context of the digital era. This is indicated by a calculated t-value greater than the t-table (1.96) and a P-value <0.050 for all hypotheses. Thus, all hypotheses proposed in this study are accepted.

Conclusions: The conclusion of this study confirms that the implementation of a strong organizational culture and transformational leadership are key strategies to increase productivity in the digital era. This research was conducted in the context of increasingly massive digitalization, thus providing a new perspective on how organizational culture and leadership styles need to adapt to face technological changes and the need for more flexible and data-driven work.

Limitations: This study uses a quantitative approach through distributing questionnaires, so it cannot capture in depth the perceptions, emotions and dynamics of social interactions within the organization.

Contribution: Providing input to company leaders in developing a work culture that is adaptive to digital change. The company needs to strengthen an organizational culture that is adaptive, innovative, and open to technological change. Furthermore, implementing transformational policies is crucial to boost employee motivation, loyalty, and productivity.

Keywords:
1. Digital Era
2. Digital Transformation
3. Employee Performance
4. Organizational Culture
5. Productivity
6. Transformational Leadership
Authors:
Nelly Chandrawati Manalu
Universitas Putera Batam, Batam, Kepulauan Riau, Indonesia
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Manalu, N. C. (2025). The influence of organizational culture and transformational leadership on employee performance PT. Epson in the digital era. Annals of Human Resource Management Research, 5(3), 713–726. https://doi.org/10.35912/ahrmr.v5i3.3061
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Vol. 5 No. 3 (2025): September
Articles
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References

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    Bamidele, R. (2022). Organizational Culture. Industrial Sociology, Industrial Relations and Human Resource Management, 1, 284-294.

    Barroga, E., & Matanguihan, G. J. (2022). A Practical Guide to Writing Quantitative and Qualitative Research Questions and Hypotheses in Scholarly Articles. ournal of Korean Medical Science, 37(16), 1-18. doi:https://doi.org/10.3346/jkms.2022.37.e121

    Bass, B. M., & Riggio, R. E. (2006). Transformational Leadership: Psychology Press.

    Bellantuono, N., Nuzzi, A., Pontrandolfo, P., & Scozzi, B. (2021). Digital Transformation Models for the I4.0 Transition: Lessons from the Change Management Literature. Sustainability, 13(23), 1-40. doi:https://doi.org/10.3390/su132312941

    Deloitte. (2020). The Deloitte Global Millennial Survey 2020: Resilient Generations Hold the Key to Creating a “Better Normal”. Retrieved from https://www.deloitte.com/uk/en/issues/work/deloitte-global-millennial-survey-2020.html

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    Enrique, D. V., Lerman, L. V., de Sousa, P. R., Benitez, G. B., Santos, F. M. B. C., & Frank, A. G. (2022). Being Digital and Flexible to Navigate The Storm: How Digital Transformation Enhances Supply Chain Flexibility in Turbulent Environments. International Journal of Production Economics, 250. doi:https://doi.org/10.1016/j.ijpe.2022.108668

    Ghanad, A. (2023). An Overview of Quantitative Research Methods. International Journal of Multidisciplinary Research and Analysis, 6(8), 3794-3803. doi:https://doi.org/10.47191/ijmra/v6-i8-52

    Ghozali, I., & Latan, H. (2015). Partial Least Squares Konsep Teknik dan Aplikasi dengan Program Smart PLS 3.0. Semarang: Badan Penerbit Undip.

    Hidayat, R., & Zami, A. (2022). The Effect of Self-Efficacy, Talent Management, and Continuous Improvement on Employee Organizational Commitment PT. Indonesia Epson Industry. Strategic Management Business Journal, 2(2), 83-91. doi:https://doi.org/10.55751/smbj.v2i02.39

    Hofstede, G. (1991). Cultures and Organizations: Software of the Mind. New York: McGraw Hills.

    Hooi, L. W., & Chan, A. J. (2023). Does Workplace Digitalization Matter in Linking Transformational Leadership and Innovative Culture to Employee Engagement?. Journal of Organizational Change Management, 36(2), 197-216. doi:https://doi.org/10.1108/JOCM-06-2022-0184

    Iskamto, D. (2023). Organizational Culture and Its Impact on Employee Performance. International Journal of Management and Digital Business, 2(1), 47-55. doi:https://doi.org/10.54099/ijmdb.v2i1.584

    Itri, J. N., & Lawson, L. M. (2016). Ineffective Leadership. Journal of the American College of Radiology, 13(7), 849-855. doi:https://doi.org/10.1016/j.jacr.2016.02.008

    Kotler, P., & Keller, K. L. (2009). Manajemen Pemasaran Edisi 13 Jilid 1. Jakarta: Penerbit Erlangga.

    Kramar, R. (2022). Sustainable Human Resource Management: Six Defining Characteristics. Asia Pacific Journal of Human Resources, 60(1), 146-170. doi:https://doi.org/10.1111/1744-7941.12321

    Kusuma, A. P., & Herfiyani, I. (2023). The Impact of Product Quality and Work Discipline To Work Productivity at PT Indonesia Epson–Cikarang. SMART: Management Journal, 4(1), 20-37. doi:http://dx.doi.org/10.53990/smart.v4i1.369

    Laihad, R. A., Lengkong, V. P., & Saerang, R. T. (2019). Analisis Faktor-Faktor yang Mnyebabkan Resistensi dalam Proses Perubahan Organisasi di Otoritas Jasa Keuangan Sulawesi Utara, Gorontalo dan Maluku Utara di Manado. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 7(1), 531-540. doi:https://doi.org/10.35794/emba.v7i1.22442

    Lam, L., Nguyen, P., Le, N., & Tran, K. (2021). The Relation among Organizational Culture, Knowledge Management, and Innovation Capability: Its Implication for Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 1-16. doi:https://doi.org/10.3390/joitmc7010066

    Lubis, F. R., & Hanum, F. (2020). Organizational Culture. Proceedings of the 2nd Yogyakarta International Conference on Educational Management/Administration and Pedagogy, 511, 88-91. doi:https://doi.org/10.2991/assehr.k.201221.020

    Ly, B. (2024). The Interplay of Digital Transformational Leadership, Organizational Agility, and Digital Transformation. Journal of the Knowledge Economy, 15(1), 4408-4427. doi:https://doi.org/10.1007/s13132-023-01377-8

    McKinsey. (2021). The 2021 McKinsey Global Payments Report. Retrieved from https://www.mckinsey.com/industries/financial-services/our-insights/the-2021-mckinsey-global-payments-report

    Mehta, A. M., Rauf, A., & Senathirajah, A. R. b. S. (2024). Achieving World Class Manufacturing Excellence: Integrating Human Factors and Technological Innovation. Sustainability, 16(24), 1-23. doi:https://doi.org/10.3390/su162411175

    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

    Okello, S. I. (2023). Effect of Work Life Balance Practices on Employee Performance: A Case of Kenya Ports Authority. Journal of Economics, Finance and Business Analytics, 1(1), 1-13.

    Pasovska, S., & Miceski, T. (2018). The Impact of Transformational Leadership in Improvement of the Organizational Capability. International Journal for Innovation Education and Research, 6(2), 235-246. doi:http://dx.doi.org/10.31686/ijier.vol6.iss2.957

    Purwanto, A., Purba, J. T., Bernarto, I., & Sijabat, R. (2023). Investigating the Role Digital Transformation and Human Resource Management on the Performance of the Universities. International Journal of Data and Network Science, 7, 2013-2028. doi:https://doi.org/10.5267/j.ijdns.2023.6.011

    Rahmatullah, A., Ramdansyah, A. D., Kambara, R., & Haryadi, D. (2022). Improving Organizational Performance with Organizational Culture and Transformational Leadership Through Intervening Organizational Commitment Variables. Dinasti International Journal of Digital Business Management, 3(2), 180-194. doi:https://doi.org/10.31933/dijdbm.v3i2.1118

    Rojak, J. A., Sanaji, S., Witjaksono, A. D., & Kistyanto, A. (2024). The Influence of Transformational Leadership and Organizational Culture on Employee Performance. EDUKASIA Jurnal Pendidikan dan Pembelajaran, 5(1), 977-990. doi:https://doi.org/10.62775/edukasia.v5i1.926

    Rompho, N. (2024). Do Objectives and Key Results Solve Organizational Performance Measurement Issues?. Benchmarking: An International Journal, 31(3), 669-682. doi:https://doi.org/10.1108/BIJ-07-2022-0464

    Samsir, A., & Muis, A. (2023). The Effect of Transformational Leadership and Organizational Culture Through Job Satisfaction and Work Motivation on Employee Performance. International Journal of Educational Administration, Management, and Leadership, 4(1), 45-56. doi:https://doi.org/10.51629/ijeamal.v4i1.120

    Serenko, A. (2024). The Human Capital Management Perspective on Quiet Quitting: Recommendations for Employees, Managers, and National Policymakers. Journal of Knowledge Management, 28(1), 27-43. doi:https://doi.org/10.1108/JKM-10-2022-0792

    Taherdoost, H. (2022). What are Different Research Approaches? Comprehensive Review of Qualitative, Quantitative, and Mixed Method Research, Their Applications, Types, and Limitations. Journal of Management Science & Engineering Research, 5(1), 53-63. doi:https://doi.org/10.30564/jmser.v5i1.4538

    Teymournejad, K., & Elghaei, R. (2017). Effect of Transformational Leadership on the Creativity of Employees: An Empirical Investigation. Engineering, Technology & Applied Science Research, 7(1), 1413-1419. doi:https://doi.org/10.48084/etasr.765

    Vidhia, C. (2023). The Effect of Transformational Leadership and Organizational Culture on Employee Performance. Enrichment: Journal of Management, 12(6), 5181-5190. doi:https://doi.org/10.35335/enrichment.v12i6.1107

    Virgiawan, A. R., Riyanto, S., & Endri, E. (2021). Organizational Culture as a Mediator Motivation and Transformational Leadership on Employee Performance. Academic Journal of Interdisciplinary Studies, 10(3), 67-79. doi:https://doi.org/10.36941/ajis-2021-0065

    Waheed, A., & Ziberi, B. F. (2024). The Influence of Transformational Leadership on Students’ Achievement: An Exploratory Analysis. International Journal of Emerging Business and Economic Trends, 3(2), 83-102.

    Wang, Y., Farag, H., & Ahmad, W. (2021). Corporate Culture and Innovation: A Tale from an Emerging Market. British Journal of Management, 32(4), 1121-1140. doi:https://doi.org/10.1111/1467-8551.12478

    Xenikou, A., & Furnham, A. (2022). Leadership and Organizational Culture. Handbook of Research Methods for Organisational Culture, 23-38. doi:http://dx.doi.org/10.4337/9781788976268.00009

    Yukl, G. (2012). Effective Leadership Behavior: What We Know and What Questions Need More Attention. Academy of Management Perspectives, 26(4), 66-85. doi:https://doi.org/10.5465/amp.2012.0088

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  2. Bamidele, R. (2022). Organizational Culture. Industrial Sociology, Industrial Relations and Human Resource Management, 1, 284-294.
  3. Barroga, E., & Matanguihan, G. J. (2022). A Practical Guide to Writing Quantitative and Qualitative Research Questions and Hypotheses in Scholarly Articles. ournal of Korean Medical Science, 37(16), 1-18. doi:https://doi.org/10.3346/jkms.2022.37.e121
  4. Bass, B. M., & Riggio, R. E. (2006). Transformational Leadership: Psychology Press.
  5. Bellantuono, N., Nuzzi, A., Pontrandolfo, P., & Scozzi, B. (2021). Digital Transformation Models for the I4.0 Transition: Lessons from the Change Management Literature. Sustainability, 13(23), 1-40. doi:https://doi.org/10.3390/su132312941
  6. Deloitte. (2020). The Deloitte Global Millennial Survey 2020: Resilient Generations Hold the Key to Creating a “Better Normal”. Retrieved from https://www.deloitte.com/uk/en/issues/work/deloitte-global-millennial-survey-2020.html
  7. Dirwan, Rajindra, Farid, Mande, H., Nursiah, & Supriadi, A. (2024). The Influence of Organizational Culture, Organizational Commitment, on Motivation and Job Satisfaction of Employees and Lecturers at Muhammadiyah University of Palu. International Journal of Health, Economics, and Social Sciences (IJHESS), 6(3), 904-918. doi:https://doi.org/10.56338/ijhess.v6i3.5867
  8. Enrique, D. V., Lerman, L. V., de Sousa, P. R., Benitez, G. B., Santos, F. M. B. C., & Frank, A. G. (2022). Being Digital and Flexible to Navigate The Storm: How Digital Transformation Enhances Supply Chain Flexibility in Turbulent Environments. International Journal of Production Economics, 250. doi:https://doi.org/10.1016/j.ijpe.2022.108668
  9. Ghanad, A. (2023). An Overview of Quantitative Research Methods. International Journal of Multidisciplinary Research and Analysis, 6(8), 3794-3803. doi:https://doi.org/10.47191/ijmra/v6-i8-52
  10. Ghozali, I., & Latan, H. (2015). Partial Least Squares Konsep Teknik dan Aplikasi dengan Program Smart PLS 3.0. Semarang: Badan Penerbit Undip.
  11. Hidayat, R., & Zami, A. (2022). The Effect of Self-Efficacy, Talent Management, and Continuous Improvement on Employee Organizational Commitment PT. Indonesia Epson Industry. Strategic Management Business Journal, 2(2), 83-91. doi:https://doi.org/10.55751/smbj.v2i02.39
  12. Hofstede, G. (1991). Cultures and Organizations: Software of the Mind. New York: McGraw Hills.
  13. Hooi, L. W., & Chan, A. J. (2023). Does Workplace Digitalization Matter in Linking Transformational Leadership and Innovative Culture to Employee Engagement?. Journal of Organizational Change Management, 36(2), 197-216. doi:https://doi.org/10.1108/JOCM-06-2022-0184
  14. Iskamto, D. (2023). Organizational Culture and Its Impact on Employee Performance. International Journal of Management and Digital Business, 2(1), 47-55. doi:https://doi.org/10.54099/ijmdb.v2i1.584
  15. Itri, J. N., & Lawson, L. M. (2016). Ineffective Leadership. Journal of the American College of Radiology, 13(7), 849-855. doi:https://doi.org/10.1016/j.jacr.2016.02.008
  16. Kotler, P., & Keller, K. L. (2009). Manajemen Pemasaran Edisi 13 Jilid 1. Jakarta: Penerbit Erlangga.
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  18. Kusuma, A. P., & Herfiyani, I. (2023). The Impact of Product Quality and Work Discipline To Work Productivity at PT Indonesia Epson–Cikarang. SMART: Management Journal, 4(1), 20-37. doi:http://dx.doi.org/10.53990/smart.v4i1.369
  19. Laihad, R. A., Lengkong, V. P., & Saerang, R. T. (2019). Analisis Faktor-Faktor yang Mnyebabkan Resistensi dalam Proses Perubahan Organisasi di Otoritas Jasa Keuangan Sulawesi Utara, Gorontalo dan Maluku Utara di Manado. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 7(1), 531-540. doi:https://doi.org/10.35794/emba.v7i1.22442
  20. Lam, L., Nguyen, P., Le, N., & Tran, K. (2021). The Relation among Organizational Culture, Knowledge Management, and Innovation Capability: Its Implication for Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 1-16. doi:https://doi.org/10.3390/joitmc7010066
  21. Lubis, F. R., & Hanum, F. (2020). Organizational Culture. Proceedings of the 2nd Yogyakarta International Conference on Educational Management/Administration and Pedagogy, 511, 88-91. doi:https://doi.org/10.2991/assehr.k.201221.020
  22. Ly, B. (2024). The Interplay of Digital Transformational Leadership, Organizational Agility, and Digital Transformation. Journal of the Knowledge Economy, 15(1), 4408-4427. doi:https://doi.org/10.1007/s13132-023-01377-8
  23. McKinsey. (2021). The 2021 McKinsey Global Payments Report. Retrieved from https://www.mckinsey.com/industries/financial-services/our-insights/the-2021-mckinsey-global-payments-report
  24. Mehta, A. M., Rauf, A., & Senathirajah, A. R. b. S. (2024). Achieving World Class Manufacturing Excellence: Integrating Human Factors and Technological Innovation. Sustainability, 16(24), 1-23. doi:https://doi.org/10.3390/su162411175
  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. Okello, S. I. (2023). Effect of Work Life Balance Practices on Employee Performance: A Case of Kenya Ports Authority. Journal of Economics, Finance and Business Analytics, 1(1), 1-13.
  27. Pasovska, S., & Miceski, T. (2018). The Impact of Transformational Leadership in Improvement of the Organizational Capability. International Journal for Innovation Education and Research, 6(2), 235-246. doi:http://dx.doi.org/10.31686/ijier.vol6.iss2.957
  28. Purwanto, A., Purba, J. T., Bernarto, I., & Sijabat, R. (2023). Investigating the Role Digital Transformation and Human Resource Management on the Performance of the Universities. International Journal of Data and Network Science, 7, 2013-2028. doi:https://doi.org/10.5267/j.ijdns.2023.6.011
  29. Rahmatullah, A., Ramdansyah, A. D., Kambara, R., & Haryadi, D. (2022). Improving Organizational Performance with Organizational Culture and Transformational Leadership Through Intervening Organizational Commitment Variables. Dinasti International Journal of Digital Business Management, 3(2), 180-194. doi:https://doi.org/10.31933/dijdbm.v3i2.1118
  30. Rojak, J. A., Sanaji, S., Witjaksono, A. D., & Kistyanto, A. (2024). The Influence of Transformational Leadership and Organizational Culture on Employee Performance. EDUKASIA Jurnal Pendidikan dan Pembelajaran, 5(1), 977-990. doi:https://doi.org/10.62775/edukasia.v5i1.926
  31. Rompho, N. (2024). Do Objectives and Key Results Solve Organizational Performance Measurement Issues?. Benchmarking: An International Journal, 31(3), 669-682. doi:https://doi.org/10.1108/BIJ-07-2022-0464
  32. Samsir, A., & Muis, A. (2023). The Effect of Transformational Leadership and Organizational Culture Through Job Satisfaction and Work Motivation on Employee Performance. International Journal of Educational Administration, Management, and Leadership, 4(1), 45-56. doi:https://doi.org/10.51629/ijeamal.v4i1.120
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  34. Taherdoost, H. (2022). What are Different Research Approaches? Comprehensive Review of Qualitative, Quantitative, and Mixed Method Research, Their Applications, Types, and Limitations. Journal of Management Science & Engineering Research, 5(1), 53-63. doi:https://doi.org/10.30564/jmser.v5i1.4538
  35. Teymournejad, K., & Elghaei, R. (2017). Effect of Transformational Leadership on the Creativity of Employees: An Empirical Investigation. Engineering, Technology & Applied Science Research, 7(1), 1413-1419. doi:https://doi.org/10.48084/etasr.765
  36. Vidhia, C. (2023). The Effect of Transformational Leadership and Organizational Culture on Employee Performance. Enrichment: Journal of Management, 12(6), 5181-5190. doi:https://doi.org/10.35335/enrichment.v12i6.1107
  37. Virgiawan, A. R., Riyanto, S., & Endri, E. (2021). Organizational Culture as a Mediator Motivation and Transformational Leadership on Employee Performance. Academic Journal of Interdisciplinary Studies, 10(3), 67-79. doi:https://doi.org/10.36941/ajis-2021-0065
  38. Waheed, A., & Ziberi, B. F. (2024). The Influence of Transformational Leadership on Students’ Achievement: An Exploratory Analysis. International Journal of Emerging Business and Economic Trends, 3(2), 83-102.
  39. Wang, Y., Farag, H., & Ahmad, W. (2021). Corporate Culture and Innovation: A Tale from an Emerging Market. British Journal of Management, 32(4), 1121-1140. doi:https://doi.org/10.1111/1467-8551.12478
  40. Xenikou, A., & Furnham, A. (2022). Leadership and Organizational Culture. Handbook of Research Methods for Organisational Culture, 23-38. doi:http://dx.doi.org/10.4337/9781788976268.00009
  41. Yukl, G. (2012). Effective Leadership Behavior: What We Know and What Questions Need More Attention. Academy of Management Perspectives, 26(4), 66-85. doi:https://doi.org/10.5465/amp.2012.0088