Volume 3, Issue 2, February 2022 E-ISSN : 2715-4203, P-ISSN : 2715-419X
Available Online: https://dinastipub.org/DIJDBM Page 180
DOI: https://doi.org/10.31933/dijdbm.v3i2
Received: 10 December 2021, Revised: 20 January 2022, Publish: 1 February 2022
IMPROVING ORGANIZATIONAL PERFORMANCE WITH
ORGANIZATIONAL CULTURE AND TRANSFORMATIONAL
LEADERSHIP THROUGH INTERVENING ORGANIZATIONAL
COMMITMENT VARIABLES
Asep Rahmatullah1)
, Agus David Ramdansyah2)
, Roni Kambara3)
, Didit Haryadi4)
1)
Sultan Ageng Tirtayasa University, Serang Banten Indonesia, aseprahmatullah67@gmail.com
2)
Sultan Ageng Tirtayasa University, Serang Banten Indonesia, rnkambara@yahoo.com
3)
Sultan Ageng Tirtayasa University, Serang Banten Indonesia, agus.david@untirta.ac.id
4)
Primagraha University, Serang Banten Indonesia, didit.haryadi.dh55@gmail.com
Corresponding Author: Didit Haryadi4
Abstract: This study aims to examine and analyze the influence of organizational culture and
transformational leadership on organizational performance through organizational commitment.
This study uses a descriptive quantitative method with a causal approach. The object of this
research is the regeneration of the Indonesian Democratic Party of Banten Province using a
sample of 158 respondents. Questionnaire answers were measured using an interval scale of 1-
10. Data were analyzed using the SmartPLS version 3.29 software. The results of this study
stated that: 1). Organizational culture has a positive and significant effect on organizational
performance. 2). Transformational leadership has a positive and significant effect on
organizational performance. 3). Organizational culture has a positive and significant effect on
organizational commitment. 4). Transformational leadership has a positive and significant effect
on organizational commitment. 5). Organizational commitment has a positive and significant
effect on organizational performance. Organizational commitment can mediate between
organizational culture and transformational leadership in partial mediation.
Keywords: Organizational Culture, Transformational Leadership, Organizational Commitment,
Organizatioal Performance.
INTRODUCTION
Membership in an organization is a very important matter in an organization and
institutional formation, because the success and effectiveness in a political party or organization
is highly dependent on the quality of membership it has in the system. Individuals are often the
determinants of presence in the organization where they take refuge, so organizations should no
longer see membership as a problem, but as a very significant institutional asset (Ahmad 2020;
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Basri 2020; Bahdin 2020; Purwanto et al., 2021). In the context of organizational change, the
behavior of their members plays an important role in managing organizational change
effectively. Because of the uncertainty and complexity associated with organizational change, a
member who is afraid of uncertainty shows the attitude to be involved in the organizational
change process (Gilley et al., 2009; Parish et al., 2008; Brown & Cregan, 2008; Islam et al.,
2021).
Organizational effectiveness depends on several factors, one of which is the human aspect.
The success and setbacks of an organization cannot be separated from the human aspect so that it
becomes the main concern of the management control system. The use of the term organizational
culture refers to the prevailing culture within the organization because in general the institution
is a form of organization, namely cooperation between several people who form separate groups
or work units. Organizational culture is often defined as the values, symbols that are understood
and shared by an organization so that its members feel one family and create conditions that are
different from other organizations (Emita & Sugeng, 2021).
There are several ways to improve organizational performance, including diagnostics that
can be done informally by everyone with an interest in increasing their ability to evaluate and
improve performance, observing performance, listening to others comment on why something
happened. Performance is basically to ensure objectivity based on their achievement system and
career system. the assessment is carried out based on performance planning at the regeneration
level and at the unit or organizational level, taking into account the targets, achievements, results
and benefits achieved, as well as individual behaviors (Haerofiatna et al., 2021). Organizational
performance is basically an effort made by them at work that can have a good or bad effect on
the achievement of organizational goals and objectives (Ivancevich & Konopaske 2013: 265;
(Linggiallo et al., 2021).
One of the factors that can improve organizational performance is by implementing a good
organizational culture that can serve the community. Organizational culture can basically
influence their individual attitudes and behavior and it can cause individuals to understand the
basic values of the organization and be more involved in it. Previous research has attempted to
find the aspects needed to improve innovation and organizational performance (Koc & Ceylan,
2007; Zeb et al., 2021).
Given the rapid development of organizations in today's politics, the increasing complexity
of the political environment in all its aspects, the need for change at all levels of work, and the
increasing effectiveness of the relationship between leaders and subordinates, it is necessary to
think about creating a more appropriate leadership style, because transformational leadership is
the most important. of these patterns, which is one of the modern concepts in management
thinking. Today's institutions need leaders who are able to form a clear vision of the future for
the institution, strategic planning in developing and managing change, and avoiding crises, to
keep up with modern developments and trends in information and communication technology
(Guan & Frenkel, 2018; Alhashedi et al., 2021). Especially the transformational leadership
approach is considered the most suitable style for maintaining member attitudes in the context of
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effective organizational change (Sharma & Krishnan, 2012; Islam et al., 2020). Leaders who
apply this type of transformational leadership will tend to trigger them to produce work that
exceeds what is expected, namely by changing the vision, being an example, providing support,
and stimulating the desire for change for the better. Followers have trust, admiration, loyalty, and
respect for their leader, so they will easily do more work than expected. Leaders change and
motivate followers using their charisma and intellect (Shofiyuddin et al., 2021).
One way that can improve individual performance is with individuals who have high
organizational commitment. Attachment members who have high organizational commitment
feel attached and identify with their organization therefore, are willing to exert effort on behalf
of the organization (Jaramillo et al., 2005; Mathieu & Zajac, 1990; Wright & Bonett, 2002;
Sungu et al., 2019). Those who have high organizational commitment will be more motivated to
follow the organization and strive to achieve organizational goals (Mowday et al., 1979;
Heriyanto, 2021).
The writer's assumption is that the low organizational performance is caused by the
leadership style. The low intensity of the leader towards motivation and lack of attention to the
wishes of cadres who support them in carrying out community approach activities, the low sense
of responsibility of cadres in completing the obligations carried out, then the cadres do not
uphold the values of organizational culture, the low commitment of a cadre in this case, the
vision and mission of the organization of the Indonesian Democratic Party of Struggle of Banten
Province cannot be achieved.
LITERATURE REVIEW
Organizational Performance
Organizational performance is the achievement of a goal depending on the organization's
performance, namely the ability of an organization to implement strategically and effectively
manage the goals of an organization (Randeree & Al-Youha 2009; Salim & Rajput, 2021).
Organizational performance is the actual result or output of an organization as measured against
the organization's intended output (Tomal & Jones, 2015; Sun & Henderson, 2017).
Organizational performance is the ability to achieve organizational tasks by using resources
effectively and efficiently (Wanasida et al., 2021; Uljanati et al., 2021). Organizational
performance is part of the organization's strategy that serves as a guide to determine how the
organization will develop over time in an effort to achieve the goals that have been set and
measured (Irnawati & Prasetyo, 2020; Adhi & Aima, 2021). Organizational performance can be
defined as the ability to exploit the organization's environment in the acquisition of scarce and
valuable resources to maintain its function (Seashore & Yuchtman 1967: 393; Alrowwad et al.,
2020). Organizational performance considered as a description of the success or failure of the
organization during the implementation of the main tasks and functions, in order to realize the
goals, objectives, vision and mission. It is also associated as achievement within a certain period
(Effiyanti et al., 2021).
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Organizational Culture
Organizational culture is a basic organizational philosophy that contains shared beliefs,
norms, and values that are the core characteristics of how to do things in organizations. These
beliefs, norms, and values become the grip of all human resources in the organization in carrying
out their performance (Dewi & Sukarno, 2021). Organizational culture is the values,
assumptions, assumptions, attitudes, and behavioral norms that have been institutionalized and
then manifest in appearance, attitudes, and actions, so that they become the identity of a
particular organization (Imran et al., 2021). Organizational culture are the standards and values
that guide the behavior of organizational members. Because, of course, every member of the
organization has his own personality that sets him apart. The factor that differentiates an
organization from other organizations is culture. These things are important and therefore must
be understood and recognized. However, universal things must be applied by management with
an approach that takes into account the situational factors, depending on conditions, time and
space (Sapta et al., 2021).
Transformational Leadership
Transformational leadership provide the basis for long-term team changes which, in turn,
will provide a meaningful basis for achieving the larger goals of the group system (Jain et al.,
2019). Transformational leadership Focused on helping followers achieve greater abilities by
being excellent role models (perfect impact), communicating dreams and goals, inspirational
encouragement, increasing intellect and rationality, intellectual excitement and sharing
individual care, personal estimation (Bass, 1990, Bass & Avolio 1993; Kim & Park, 2019).
According (Avolio et al., 2004; Sule & Priansah, 2018: 76) Describes, transformational
leadership is observed when leaders encourage followers to improve their morals, provide
enthusiasm, belief, assumptions and together for group goals. Leadership transformational
strengthens followers' persistence and action and inspires subordinates in their own needs at a
level with industry development (Burns, 1978; Titisari, 2019: 59). With transformational
leadership influencing followers to finally feel confidence, incongruity, obedience and respect
for superiors and they are motivated to do more than previously expected of them (Yukl, 2017:
316).
Organizational Commitment
Commitment is a central value in realizing organizational solidity (Ricardianto, 2018:
175). Organizational commitment can be interpreted as part of the personal bond of employees
looking at themselves in their profession, their work in special agencies/institutions, of course
(Jewell & Siegall 1998; Sutrisno, 2015: 292). Organizational commitment very meaningful
because the institution wants employees who have a great organizational commitment so that the
institution can continue to survive and improve the services and products it produces (Kanwal &
Shar, 2021). Organizational commitment can mean employee loyalty to the institution as well as
the process in achieving goals in a sustainable way (Kurniasari et al., 2018). According
(Ivancevich et al., 2008: 184; Wibowo, 2016: 429) expressed his opinion that organizational
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commitment is a feeling of recognition, involvement and loyalty of employees claimed by
workers to agencies/institutions. Organizational commitment is a strong will to remain as a
member of a special institution, a willingness to work hard according to the wishes of the
institution, special trust and recognition of the goals and objectives of the institution (Luthan,
2006: 249). Organizational commitment is very meaningful, good goals, the right strategy, and
the encouragement of areas that support it will all be in vain if employee commitment to
improving the organization is not present (Sinambela, 2019: 81).
Research Model Framework
Based on the literature review and previous research as well as the relationship between the
variables, the framework of thought is a description of the presence or absence of a direct
influence from one variable to another and the relationship between each variable. Based on the
literature review and previous research as well as the relationship between variables, the
framework for improving organizational performance is, among others, the variables of
organizational culture, transformational leadership, organizational commitment on organizational
commitment as an intervening variable, can be seen in Figure 2.5 as follows:
Source: Research Model Framework Developed 2021
Figure 1. Research Model Developed 2021
Hypothesis
H1: organizational culture has a positive and significant effect on organizational performance.
H2: transformational leadership has a positive and significant effect on organizational
performance.
H3: organizational culture has a positive and significant effect on organizational commitment.
H4: organizational culture has a positive and significant effect on organizational commitment.
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H5: organizational commitment has a positive and significant effect on organizational
performance.
RESEARCH METHODS
This study uses a descriptive quantitative method with a causal approach (cause and
effect), namely information that presents in the form of values or numbers, which is used to
explain various reflections and incidents in connection with the application of impacts,
relationships, influences and effects between independent variables on the dependent variable
(Ferdinand. A, 2014). This study uses a descriptive approach. Descriptive analysis is an analysis
that describes the collection, processing, and presentation and understanding of information in a
quantitative or percentage way that can be presented in the form of charts or diagrams (Sugiono,
2019). The population in this study were cadres of the Indonesian Democratic Party of Struggle
at the Regional Leadership Council in Banten Province, amounting to 158 respondents. Then the
sample in this study was the cadres of the Indonesian Democratic Party of Struggle at the
Regional Leadership Council in Banten Province, a population of 158 respondents was drawn as
a sample. The sampling technique used in this study is total/saturated sampling. The author uses
primary data and secondary data. Primary data is data obtained directly from the source, namely
the cadres of the Indonesian Democratic Party of Struggle at the Regional Leadership Council in
Banten Province by filling out a questionnaire with an interval scale of 1 strongly disagree - 10
strongly agree using the Agre Disagree scale technique. Secondary data is data obtained from the
Regional Leadership Council of the Indonesian Democratic Party of Struggle, Banten Province.
The author uses data analysis with SmartPLS. PLS is a procedure for replacing analysis with
Structural Equation Modeling (SEM) with a variance platform (Ghozali. I & Latan. H, 2015).
FINDINGS AND DISCUSSION
Evaluation of the Measurement Model (Outer Model)
Steps to test the form of measurement in the model include testing Convergent Validity,
Discriminant Validity and Composite Reliability. Convergent Validity testing is tried by looking
at the loading factor number of each indicator marker to the construct. For confirmatory
research, the loading factor limit used is 0.70, on the other hand, for exploratory research, the
loading factor limit used is 0.60. Therefore, this research is confirmatory research, so that the
loading factor limit used to test the convergence validity of each indicator marker is 0.70. The
results of the PLS construct model can be seen in the following picture:
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Figure 2. PLS Model Estimation Results (Algorithm)
Source: Output SmartPLS 3.29 processed 2021
Not only by looking at the loading factor number for each indicator, the convergent
validity test is also done by looking at the AVE number for each construct, stating that it has met
the required convergent validity if each construct already has an AVE number > 0.5.
Table 1. Value of Construct Reliability, Validity and AVE
Construct Reliability and Validity
Variable Crombach’s
Alpha
Composite
Reliability
Average Variance
Extacted
Organizational Commitment 0.895 0.922 0.704
Organizational Culture 0.864 0.902 0.647
Organizational performance 0.942 0.956 0.814
Transformational Leadership 0.892 0.925 0.755
Source: Output SmartPLS 3.29 processed 2021
The results of the analysis in the tabulation above prove that all constructs already have an
AVE number above 0.50 which means that all constructs have met positive convergent validity.
Construct reliability can be estimated from the Crombach's Alpha number and the Composite
Reliability number of each construct. The construct is considered to have high reliability if the
Crombach's alpha number exceeds 0.70 and the composite reliability score is greater than 0.70.
Hypothesis Test
Hypothesis testing is used to determine the effect of the independent variable on the
dependent variable. The assumptions used in this test can be seen in the following table:
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Table 2. Hypothesis Test Direct Effect
Path Coeffisient Direct Effect
Hypothesis Variable Relationship Original Sample T Statistic P Values
H1
Organizational Culture →
Organizational Performance
0.224 4.124 0.000
H2
Transformational Leadership →
Organizational Performance
0.126 2.380 0.018
H3
Organizational Culture →
Organizational Commitment
0.365 4.924 0.000
H4
Transformational Leadership →
Organizational Commitment
0.338 4.164 0.000
H5
Organizational Commitment →
Organizational Performance
0.634 11.267 0.000
Source: Output SmartPLS 3.29 processed 2021
Based on the table above, the explanation can be presented in the welding below:
Hypothesis Testing and Discussion
Direct Influence
As explained in the previous chapter, in this study there were 5 (five) hypothesis on direct
effect. Hypothesis testing analysis was carried out with a significance level of 5%, resulting in a
critical t-value of ± 1.96. The hypothesis is accepted if the t-value obtained is 1.96, while the
hypothesis is not supported if the t-value obtained is < 1.96. The following is a table of
hypothesis testing to answer all research questions:
The Influence of Organizational Culture on Organizational Performance
The findings of this study, the first hypothesis of the results of this study shows,
organizational culture has a significant influence on organizational performance. Based on the
results of bootstrapping testing with SmartPLS 3.29, the influence of organizational culture on
organizational performance obtained the T statistic value of 4.124 > from T table (1.960) and P
values (0.000) < sig (0.05). Thus it can be concluded that the first hypothesis is accepted which
states that organizational culture has a significant influence on organizational performance. The
higher the application of organizational cultural values by cadres, the higher the organizational
performance. Organizational culture is the standards and values that guide the behavior of
organizational members. Because, of course, every member of the organization has his own
personality that sets him apart. The factor that differentiates an organization from other
organizations is culture. These things are important and therefore must be understood and
recognized. However, universal things must be applied by management with an approach that
takes into account the situational factors, depending on conditions, time and space (Sapta et al.,
2021). This research supports research conducted by (Chandra et al., 2021; Kesek et al., 2021;
Imran et al., 2021) which states that organizational culture has a positive and significant effect on
organizational performance.
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The Effect of Transformational Leadership on Organizational Performance
The findings of this study, the second hypothesis, the results of this study indicate, that
transformational leadership has a significant influence on organizational performance. Based on
the results of bootstrapping testing with SmartPLS 3.29, the effect of transformational leadership
on organizational performance is the acquisition of a T statistic of 2.380 > from T table (1.960)
and P values (0.018) < sig (0.05). Thus it can be concluded that the second hypothesis is
accepted which states that transformational leadership has a significant influence on
organizational performance. The more effective the leader who has a transformational leadership
style, the more organizational performance will increase. Transformational leadership provides
the basis for long-term team changes which, in turn, will provide a meaningful basis for
achieving the larger goals of the group system (Jain et al., 2019). Transformational leadership is
centered on helping followers achieve greater abilities by being excellent role models (perfect
impact), communicating dreams and goals, inspirational drive, increasing intellect and
rationality, excites intellectuals and shares individual care, personal estimation (Bass, 1990, Bass
& Avolio 1993; Kim & Park, 2019). This research supports research conducted by (Alhashedi et
al., 2021; Bui et al., 2021; Zeb. A et al., 2018) which states that transformational leadership has a
significant positive effect on organizational performance.
The Influence of Organizational Culture on Organizational Commitment
The findings of this study, the third hypothesis, the results of this study indicate,
organizational culture has a significant influence on organizational commitment. Based on the
results of the bootstrapping test with SmartPLS 3.29, the influence of organizational culture on
organizational commitment obtained a T statistic of 4.924 > from T table (1.960) and P values
(0.000) < sig (0.05). Thus it can be concluded that the first hypothesis is accepted which states
that organizational culture has a significant influence on organizational commitment. The higher
the implementation of organizational cultural values by cadres, the higher the organizational
commitment. Organizational culture is the standards and values that guide the behavior of
organizational members. Because, of course, every member of the organization has his own
personality that sets him apart. The factor that differentiates an organization from other
organizations is culture. These things are important and therefore must be understood and
recognized. However, universal things must be applied by management with an approach that
takes into account the situational factors, depending on conditions, time and space (Sapta et al.,
2021). This research supports previous research conducted by (Oupen & Yudana, 2020; Usmany
et al., 2016; Ellys & Ie, 2020) which states that organizational culture has a significant positive
effect on organizational commitment.
The Effect of Transformational Leadership on Organizational Commitment
The findings of this study, the second hypothesis, the results of this study indicate, that
transformational leadership has a significant influence on organizational commitment. Based on
the results of bootstrapping testing with SmartPLS 3.29, the effect of transformational leadership
on organizational commitment is the acquisition of a T statistic of 4.164 > from T table (1.960)
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and P values (0.000) < sig (0.05). Thus it can be concluded that the fourth hypothesis is accepted
which states that transformational leadership has a significant influence on organizational
commitment. The more effective the leader who has a transformational leadership style, the more
organizational commitment will increase. Opinion (Avolio et al., 2004; Sule & Priansah, 2018:
76) Describes, transformational leadership is observed when leaders support followers to
improve their morals, provide enthusiasm, belief, assumptions and together for group goals.
Transformational leadership strengthens the persistence and action of followers and inspires
followers in their own needs at a rate of industry development (Burns, 1978; Titisari, 2019: 59).
With transformational leadership influencing followers to finally feel confidence, incongruity,
obedience and respect for superiors and they are motivated to do more than previously expected
of them (Yukl, 2017: 316). This research supports previous research conducted by (Nuryanti et
al., 2020; Jumiran et al., 2020; Pratama et al., 2020) which states that transformational leadership
has a significant positive effect on organizational commitment.
The Effect of Organizational Commitment on Organizational Performance
The findings of this study, the fifth hypothesis, the results of this study indicate,
organizational commitment has a significant influence on organizational performance. Based on
the results of bootstrapping testing with SmartPLS 3.29, the influence of organizational culture
on organizational performance obtained a T statistic of 11.267 > from T table (1.960) and P
values (0.000) < sig (0.05). Thus it can be concluded that the first hypothesis is accepted which
states that organizational commitment has a significant influence on organizational performance.
The higher the organizational commitment of the cadres, the higher the organizational
performance. Organizational commitment is a strong will to remain as a member of a special
institution, a willingness to work hard according to the wishes of the institution, special trust and
recognition of the goals and objectives of the institution (Luthan, 2006:249). Organizational
commitment is very meaningful, good goals, the right strategy, and the encouragement of areas
that support it will all be in vain if employee commitment to improving the organization is not
present (Sinambela, 2019:81). This finding is in line with research conducted by (Nawal et al.,
2021; Macedo et al., 2016; Ramli & Yudhistira, 2018) which states that organizational
commitment has a significant positive effect on organizational performance.
Indirect Influence
The following are the findings of the indirect effect of organizational commitment as a
mediator between the influence of organizational culture on organizational performance and
transformational leadership on organizational performance can be presented in the table below:
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Table 3. Indirect Effect
Path Coeffisient Indirect Effect
Variable Relationship T Statistic P Values
Organizational Culture → Organizational Commitment → Organizational
Performance
4.846 0.000
Transformational Leadership → Organizational Commitment → Organizational
Performance
3.583 0.000
Source: Output SmartPLS 3.29 processed 2021
Mediation 1: the indirect influence of organizational culture on organizational performance
is mediated by organizational commitment. The T statistic value is 4.846 > T table 1.960 and P
values 0.000 < 0.05. These results indicate that organizational commitment is able to mediate the
influence of organizational culture on organizational performance.
Mediation 2: the indirect influence of transformational leadership on organizational
performance is mediated by organizational commitment. The T statistic value is 3.583 > T table
1.960 and P values 0.000 < 0.05. These results indicate that organizational commitment is able to
mediate the relationship of the influence of transformational leadership on organizational
performance
CONCLUSION AND RECOMMENDATION
Based on the results of testing the hypotheses proposed by the authors, conclusions are
obtained including the first hypothesis which states that organizational commitment has a
positive and significant effect on organizational performance, is accepted or supported, meaning
that the higher the application of organizational values by cadres, the higher the organizational
performance. The second hypothesis which states that transformational leadership has a positive
and significant effect on organizational performance is accepted or supported, meaning that the
more effective the leader who has a transformational leadership style is, the higher the
organizational performance. The third hypothesis which states that organizational culture has a
positive and significant effect on organizational commitment is accepted or supported, meaning
that the higher the application of organizational cultural values by cadres, the higher the
organizational commitment. The fourth hypothesis which states that transformational leadership
has a positive and significant effect on organizational commitment is accepted or supported,
meaning that the more effective the leader who has a transformational leadership style is, the
more organizational commitment will be. The fifth hypothesis which states that organizational
commitment has a positive and significant effect on organizational performance is accepted or
supported, meaning that the higher the organizational commitment of a cadre, the higher the
organizational performance.
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