AHRMR

Article Details

Vol. 6 No. 1 (2026): March

Organisational Culture and Transformational Leadership Style: Impact on Employee Performance

https://doi.org/10.35912/ahrmr.v6i1.3729
31 Mar 2026

Abstract

Purpose – This research investigates how Organizational Culture and Transformational Leadership influence Employee Performance, and whether Culture strengthens the leadership-performance relationship.

Design/methodology/approach – A quantitative method was applied, using survey data from 30 respondents. Multiple regression tested direct effects; hierarchical regression analyzed moderation. Validity and reliability were confirmed via Pearson correlation and Cronbach’s Alpha.

Findings – Both Organizational Culture and Transformational Leadership significantly improve Employee Performance. Culture also acts as a positive moderator, meaning its presence amplifies leadership's effect on performance. The model has strong explanatory power.

Research limitations/implications – The small sample may limit generalizability. Future studies should include larger, diverse samples and longitudinal designs to better assess causality.

Practical implications – Organizations should concurrently develop strong cultures and transformational leadership, as their combined effect outperforms isolated efforts. Integrated HR and leadership programs are recommended.

Social implications – Fostering such environments promotes ethical leadership, fairness, and well-being at work, supporting broader social sustainability goals.

Originality/value – This study offers empirical evidence on both direct and interactive roles of culture and leadership, advancing beyond simple effect models and highlighting their synergy in driving performance.

Keywords

Employee Performance Organizational Culture Transformational Leadership

How to Cite

Kamaluddin, K., Ridwan, A. ., M, N. ., & Munifa, M. (2026). Organisational Culture and Transformational Leadership Style: Impact on Employee Performance . Annals of Human Resource Management Research, 6(1), 301–318. https://doi.org/10.35912/ahrmr.v6i1.3729

Download Citation

Endnote/Zotero/Mendeley (RIS) BibTeX

References

  1. Abdelwahed, N. A. A., Al Doghan, M. A., Saraih, U. N., & Soomro, B. A. (2025). Unleashing potential: Islamic leadership’s influence on employee performance via Islamic organizational values, organizational culture and work motivation. International Journal of Law and Management, 67(2), 165-190. doi:https://doi.org/10.1108/IJLMA-01-2024-0019
  2. Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179-211. doi:https://doi.org/10.1016/0749-5978(91)90020-T
  3. Alghamdi, F. (2018). Ambidextrous leadership, ambidextrous employee, and the interaction between ambidextrous leadership and employee innovative performance. Journal of innovation and entrepreneurship, 7(1), 1. doi:https://doi.org/10.1186/s13731-018-0081-8
  4. Alkhadra, W. A., Khawaldeh, S., & Aldehayyat, J. (2023). Relationship of ethical leadership, organizational culture, corporate social responsibility and organizational performance: a test of two mediation models. International Journal of Ethics and Systems, 39(4), 737-760. doi:https://doi.org/10.1108/IJOES-05-2022-0092
  5. AlNuaimi, B. K., Singh, S. K., Ren, S., Budhwar, P., & Vorobyev, D. (2022). Mastering digital transformation: The nexus between leadership, agility, and digital strategy. Journal of business research, 145, 636-648. doi:https://doi.org/10.1016/j.jbusres.2022.03.038
  6. Aslam, N., Shi, D., & Sahibzada, U. F. (2024). Combating green innovation in Italian luxury hotels: combination of social cognitive theory and natural resource-based view. Business Process Management Journal, 30(4), 1185-1212. doi:https://doi.org/10.1108/BPMJ-07-2023-0518
  7. Astuti, S. D., Shodikin, A., & Ud-Din, M. (2020). Islamic leadership, Islamic work culture, and employee performance: The mediating role of work motivation and job satisfaction. Journal of Asian Finance, Economics and Business, 7(11), 1059-1068. doi:https://doi.org/10.13106/jafeb.2020.vol7.no11.1059
  8. Badar, K., Aboramadan, M., Alhabil, W., Dahleez, K. A., & Farao, C. (2024). Does employee relations climate mediate the effect of Islamic work ethics on organizational performance? Evidence from Qatar. Journal of Islamic Accounting and Business Research, 15(8), 1205-1221. doi:https://doi.org/10.1108/JIABR-07-2022-0164
  9. Bahasoan, S., & Baharuddin, I. (2023). Work Discipline, Work Motivation and Employee Performance. Advances in Human Resource Management Research, 1(2), 90-101. doi:https://doi.org/10.60079/ahrmr.v1i2.92
  10. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120. doi:https://doi.org/10.1177/014920639101700108
  11. Benítez-Núñez, C., Dorta-Afonso, D., & de Saá-Pérez, P. (2024). High-performance work systems and employees’ outcomes in challenging contexts: the role of hindrance stressors. Journal of Hospitality Marketing & Management, 33(6), 807-830. doi:https://doi.org/10.1080/19368623.2024.2305638
  12. Blau, P. M. (1964). Justice in social exchange. Sociological inquiry, 34(2). doi:https://doi.org/10.1111/j.1475-682x.1964.tb00583.x
  13. Bowen, G. A. (2009). Document analysis as a qualitative research method. Qualitative research journal, 9(2), 27-40. doi:https://doi.org/10.3316/QRJ0902027
  14. Budiono, A., Husen, A., & Suparno, S. (2025). Performance Variable: Influenced by Training, Organizational Culture, and Motivation. Studi Akuntansi, Keuangan, dan Manajemen, 5(1), 51-60. doi:https://doi.org/10.35912/sakman.v5i1.3967
  15. Candra, W., Tubastuvi, N., Santoso, S. B., & Haryanto, E. (2022). Analysis of The Islamic Leadership, Islamic Work Ethics and Intellectual Intelligence on Employee Performance with Islamic Organization Culture as Moderated Variables. Journal of Islamic Economic and Business Research, 2(1), 1-14. doi:https://doi.org/10.18196/jiebr.v2i1.21
  16. Chen, C., Ding, X., & Li, J. (2021). Transformational leadership and employee job satisfaction: The mediating role of employee relations climate and the moderating role of subordinate gender. International journal of environmental research and public health, 19(1), 233. doi:https://doi.org/10.3390/ijerph19010233
  17. Chen, Y., Ning, R., Yang, T., Feng, S., & Yang, C. (2018). Is transformational leadership always good for employee task performance? Examining curvilinear and moderated relationships. Frontiers of Business Research in China, 12(1), 22. doi:https://doi.org/10.1186/s11782-018-0044-8
  18. Creswell, J. W., & Miller, D. L. (2000). Determining validity in qualitative inquiry. Theory into practice, 39(3), 124-130. doi:https://doi.org/10.1207/s15430421tip3903_2
  19. Davidescu, A. A., Apostu, S.-A., Paul, A., & Casuneanu, I. (2020). Work flexibility, job satisfaction, and job performance among Romanian employees—Implications for sustainable human resource management. Sustainability, 12(15), 6086. doi:https://doi.org/10.3390/su12156086
  20. Divo, A. (2024). Power To the People, Success To The Business: How Accomplished Leaders Transition From Business To People Roles. Success To The Business: How Accomplished Leaders Transition From Business To People Roles (February 28, 2024). doi:https://dx.doi.org/10.2139/ssrn.4977311
  21. Dorta-Afonso, D., González-de-la-Rosa, M., Garcia-Rodriguez, F. J., & Romero-Domínguez, L. (2021). Effects of high-performance work systems (HPWS) on hospitality employees’ outcomes through their organizational commitment, motivation, and job satisfaction. Sustainability, 13(6), 3226. doi:https://doi.org/10.3390/su13063226
  22. Elmetwaly, A. S., Mansour, N. M., & Essawy, M. (2022). Evaluation of Balanced Scorecard Practices and Their Impacts on Employees' Performance in Hotels. Evaluation, 11(3), 1008-1019. doi:https://doi.org/10.46222/ajhtl.19770720.272
  23. Espina-Romero, L., Chafloque-Céspedes, R., Izaguirre Olmedo, J., Albarran Taype, R., & Ochoa-Díaz, A. (2025). Driving digital transformation in Lima’s SMEs: Unveiling the role of digital competencies and organizational culture in business success. Administrative Sciences, 15(1), 19. doi:https://doi.org/10.3390/admsci15010019
  24. Hair, J. F., Babin, B. J., Anderson, R. E., & Black, W. C. (2018). Multivariate Data Analysis (Vol. 8): Cangage.
  25. Harijono, S. N. T., & Tunas, B. (2019). The effect of organizational culture on performance of government internal supervisory apparatus (APIP) in the national Indonesian navy. Journal of Business and Behavioural Entrepreneurship, 3(1), 27-32. doi:https://doi.org/10.21009/JOBBE.003.1.03
  26. Hassanein, F. R., Mohammadi, S., & Zargar, P. (2025). Toxic leadership and job satisfaction in the middle eastern education sector: The influence of organizational culture and trust. Administrative Sciences, 15(5), 171. doi:https://doi.org/10.3390/admsci15050171
  27. Henderikx, M., & Stoffers, J. (2022). An exploratory literature study into digital transformation and leadership: Toward future-proof middle managers. Sustainability, 14(2), 687. doi:https://doi.org/10.3390/su14020687
  28. Ibrahim, M., & Idris, S. (2023). Islamic work ethics in modern organizations: The mediating role of organizational culture. Indatu Journal of Management and Accounting, 1(2), 43-50. doi:https://doi.org/10.60084/ijma.v1i2.93
  29. Ijigu, A. W., Alemu, A. E., & Kuhil, A. M. (2022). The mediating role of employee ambidexterity in the relationship between high-performance work system and employee work performance: An empirical evidence from ethio-telecom. Cogent Business & Management, 9(1), 2135220. doi:https://doi.org/10.1080/23311975.2022.2135220
  30. Kessy, A. T. (2023). Decentralization and administrative discretion in Tanzania: An analysis of administrative discretion on human resources, finance and service delivery. Social Sciences & Humanities Open, 8(1), 100684. doi:https://doi.org/10.1016/j.ssaho.2023.100684
  31. Khan, M. A., Ismail, F. B., Hussain, A., & Alghazali, B. (2020). The interplay of leadership styles, innovative work behavior, organizational culture, and organizational citizenship behavior. Sage Open, 10(1), 2158244019898264. doi:https://doi.org/10.1177/2158244019898264
  32. Khan, S.-U.-R., Anjam, M., Abu Faiz, M., Khan, F., & Khan, H. (2020). Probing the effects of transformational leadership on employees’ job satisfaction with interaction of organizational learning culture. Sage Open, 10(2), 2158244020930771. doi:https://doi.org/10.1177/2158244020930771
  33. Lambe, K. (2024). Unlocking Gen-Z employee potential: The role of strategic leadership and organizational culture. Brazilian Journal of Development, 10(11), e74718. doi:https://doi.org/10.34117/bjdv10n11-033
  34. Lestari, R., Nurjaya, D., & Wahyuningtyas, I. A. A. (2023). The effect of implementing work ethics and Islamic leadership on employee performance. International Journal of Entrepreneurship and Sustainability Studies, 3(2), 1. doi:https://doi.org/10.31098/ijeass.v3i2.1610
  35. Liu, Y., Wang, W., & Chen, D. (2019). Linking ambidextrous organizational culture to innovative behavior: A moderated mediation model of psychological empowerment and transformational leadership. Frontiers in psychology, 10, 2192. doi:https://doi.org/10.3389/fpsyg.2019.02192
  36. Lyu, C., Peng, C., Li, R., Yang, X., & Cao, D. (2022). Ambidextrous leadership and sustainability performance: serial mediation effects of employees' green creativity and green product innovation. Leadership & Organization Development Journal, 43(8), 1376-1394. doi:https://doi.org/10.1108/LODJ-01-2021-0037
  37. Magasi, C. (2021). The role of transformational leadership on employee performance: A perspective of employee empowerment. European Journal of Business and Management Research, 6(6), 21-28. doi:https://doi.org/10.24018/ejbmr.2021.6.6.1137
  38. 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), 153-166. doi:https://doi.org/10.35912/ahrmr.v5i3.3061
  39. Mollah, M. A., Al Masud, A., & Chowdhury, M. S. (2024). How does digital leadership boost competitive performance? The role of digital culture, affective commitment, and strategic agility. Heliyon, 10(23). doi:https://doi.org/10.1016/j.heliyon.2024.e40839
  40. Murire, O. T. (2024). Artificial intelligence and its role in shaping organizational work practices and culture. Administrative Sciences, 14(12), 316. doi:https://doi.org/10.3390/admsci14120316
  41. Ouyang, C., Zhu, Y., & Ma, Z. (2022). Ambidextrous leadership and employee voice behavior: The role of work motivation and ambidextrous culture. Psychology research and behavior management, 15, 2899-2914. doi:https://doi.org/10.2147/PRBM.S385033
  42. Putra, R. S., Agustina, T. S., Khusnah, H., Subramaniam, A., Fatimah, N., Nisa, K., & Fitriya, A. L. (2025). Organizational Culture, Work Discipline, and Competencies Drive Performance Through Motivation. Paper presented at the SHS Web of Conferences.
  43. Qayyum, A., Zahid, N., & Jamil, R. A. (2019). The Impact of HR Practices on Employees’ Performance: An Imperative Role of Islamic Work Ethics. Journal of Islamic Business and Management, 9(2), 377-395. doi:https://doi.org/10.26501/jibm/2019.0902-010
  44. Rabbad, R., Astuti, H. J., Tubastuvi, N., & Pratama, B. C. (2024). The effect of Islamic leadership, organizational culture, motivation, work environment, and job satisfaction on employee performance. International Journal of Research in Business & Social Science, 13(3). doi:https://doi.org/10.20525/ijrbs.v13i3.3402
  45. Rachman, E. (2024). The impact of human resource development and organizational culture on the quality of public service. Journal of Indonesian Scholars for Social Research, 4(1), 50-55. doi:https://doi.org/10.59065/jissr.v4i1.135
  46. Rachman, S., Susanto, P. C., & Mustika, I. Determination of Employee Performance: Analysis of Training, Work Motivation, Transformational Leadership and Organizational Culture. Annals of Human Resource Management Research, 5(2), 381-394. doi:https://doi.org/10.35912/ahrmr.v5i2.2998
  47. Rahmawaty, A., Ahamed, F., & Rokhman, W. (2022). Interrelationship among Quality of Work-Life, Islamic Work Ethics, and Employee Performance: Employee Engagement as Mediator. EQUILIBRIUM, 10(1), 71-90. doi:https://doi.org/10.21043/equilibrium.v10i1.14935
  48. Rizani, M., Widyanti, R., Kurniaty, K., Shaddiq, S., & Yahya, M. Y. D. (2022). Effect of the toxic leadership on organizational performance with workplace deviant behavior of employees as mediation. Strategic Management Business Journal, 2(01), 26-38. doi:https://doi.org/10.55751/smbj.v2i01.28
  49. Sihombing, S., Simarmata, J., Banjarnahor, A. R., Farisyi, S., & Suvittawat, A. (2025). Human resources management strategies in enhancing transportation performance and safety in Indonesia. Annals of Human Resource Management Research, 5(2), 423-435. doi:https://doi.org/10.35912/ahrmr.v5i2.3001
  50. Suparman, D., Purnama, R. A., & Naryono, E. (2023). Employee Performance: Organizational Culture, Discipline and the Mediating Role of Motivation. Economics and Digital Business Review, 4(2), 31-35. doi:https://doi.org/10.37531/ecotal.v4i2.460
  51. Udin, U. (2024). Ethical leadership and employee performance: The role of Islamic work ethics and knowledge sharing. Human Systems Management, 43(1), 51-63. doi:https://doi.org/10.3233/HSM-220197
  52. Vahdati, H., Saedi, A., & Moumeni, M. (2020). The analysis and investigation of the effect of toxic leadership on human resource turnover via the mediation of organizational obstruction. Organizational Culture Management, 18(4), 661-682. doi:https://doi.org/10.22059/jomc.2020.288528.1007880
  53. Van der Hoek, M., & Kuipers, B. S. (2024). Who are leading? A survey of organizational context explaining leadership behaviour of managers and non-managerial employees in public organizations. Public Management Review, 26(4), 1083-1107. doi:https://doi.org/10.1080/14719037.2022.2160005
  54. Wang, H. (2018). An economic impact analysis of oil and natural gas development in the Permian Basin. Available at SSRN 3254814. doi:https://dx.doi.org/10.2139/ssrn.3254814
  55. Wardiansyah, D. R., Indrawati, N. K., & Kurniawati, D. T. (2024). The effect of employee motivation and employee engagement on job performance mediated by job satisfaction. International Journal of Research in Business & Social Science, 13(1), 220-231. doi:https://doi.org/10.20525/ijrbs.v13i1.3133
  56. Wardini, B. S., & Nawangsari, L. C. (2021). The influence of employer branding and organizational culture on employee engagement with motivation as mediators on the millennials generation at KAP TSFBR. European Journal of Business and Management Research, 6(4), 388-393. doi:https://doi.org/10.24018/ejbmr.2021.6.4.1007
  57. Xi, M., Chen, Y., & Zhao, S. (2021). The Role of employees’ perceptions of HPWS in the HPWS-performance relationship: A multilevel perspective. Asia Pacific Journal of Management, 38(3), 1113-1138. doi:https://doi.org/10.5465/AMBPP.2016.72

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors

1 . Kamaluddin Kamaluddin
Universitas Muhammadiyah Sorong, Sorong, Indonesia
2 . Akmal Ridwan
Universitas Muhammadiyah Sorong, Sorong, Indonesia
3 . Nurlianti M
Universitas Muhammadiyah Sorong, Sorong, Indonesia
4 . Munifa Munifa
Universitas Muhammadiyah Sorong, Sorong, Indonesia

Downloads

View PDF

Statistics

Downloads

Download data is not yet available.

Issue

Vol. 6 No. 1 (2026): March
Section: Articles
WhatsApp Instagram Facebook LinkedIn Email