The Effect of Transformational Leadership and Breakthrough
Leadership on Organization Performance with Employee Motivation
as Intervening Variable at IDX-listed (Indonesia Stock Exchange)
Coal Mining Companies in Indonesia
Joko Triraharjo, Achmad Sutawijaya, Ahmad Badawy Saluy
and Sundring Pantja Djati
Doctoral Management, Mercu Buana University, Meruya Selatan, Jakarta, Indonesia
Keywords: Transformational Leadership, Breakthrough Leadership, Employee Motivation, Organizational Performance.
Abstract: Indonesian coal production in 2018 was 528 million tons in total. Of those, 320 million tons were mined by
IDX-listed (Indonesia Stock Exchange) coal mining companies. Among those aforementioned coal mining
companies, there is a large gap in performance among each other, both in terms of financial performance and
production achievement. Their performance was hypothesized to be influenced by leadership style. This study
aims to analyze the influence of transformational leadership and breakthrough leadership on organization
performance with employee motivation as an intervening variable at IDX-listed coal mining companies in
Indonesia. The respondents of this study are 10 IDX-listed coal mining companies in Indonesia. The type of
research used is a quantitative method. Research respondents were 102 people at the position of supervisor
up to the director. The data were analyzed using Structural Equation Model - Analysis of Moment Structures.
The research results show that transformational leadership and breakthrough leadership have a positive impact
to employee motivation, then transformational leadership has a positive impact on organizational performance
but breakthrough leadership has not a positive impact on organizational performance. Employee motivation
did not mediate organizational performance. The novelty of this study is about breakthrough leadership.
1 INTRODUCTION
Mining is the driving force of economic activity in
every country, especially in remote areas in
developing countries and currently the performance
of coal mining companies in Indonesia still has to be
improved if compared with other countries. Portraits
of mining in Indonesia, especially the coal sector,
have not contributed to the optimum results for the
country as large as the prosperity of the people
(Resvani, 2017). The root problem lies in the GDP
(Gross Domestic Product) of the Mining Industry,
State Income, employment and wages, human
resource competency development, ecological
development and linkage and multiplier. The
performance or contribution of mining in Indonesia is
not significant compared to other countries such as
Australia, China, Peru or India, for example in
Australia the contribution of mining to 2014
Australian Government is 8.9%, Peru is 10%, Chile is
10%, while in Indonesia still at 3.64%.
Indonesian coal production in 2018 was 528 million
tons in total. Of those, 320 million tons were mined
by IDX-listed (Indonesia Stock Exchange) coal
mining companies. Among those aforementioned
coal mining companies, there is a large gap in
performance among each other, both in terms of
financial performance and production achievement.
Their performance was hypothesized to be influenced
by leadership style.
A number of organizational performance theories
convey that leaders who are the subjects to make
changes towards better performance (Talbot. 2010).
Baldrige Excellence Awards in the United stated that
leaders are the first and foremost process of
producing performance. Previous studies have also
found that leadership has a significant relationship to
organizational performance, as Abasilim et al (2014)
stated that transformational leadership style shows a
positive and significant relationship to organizational
performance(Abasilim, 2014). Responsive
transformational and leadership behavior has a
positive impact on organizational performance
674
Triraharjo, J., Sutawijaya, A., Saluy, A. and Djati, S.
The Effect of Transformational Leadership and Breakthrough Leadership on Organization Performance with Employee Motivation as Intervening Variable at IDX-listed (Indonesia Stock
Exchange) Coal Mining Companies in Indonesia.
DOI: 10.5220/0008435206740682
In Proceedings of the 2nd International Conference on Inclusive Business in the Changing World (ICIB 2019), pages 674-682
ISBN: 978-989-758-408-4
Copyright
c
2020 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
(Katou, 2015). The transformational leaders produce
higher performance towards organizational growth
(Strukan et al, 2017), (Taufali, 2017).
Transformational leadership is universally
recognized as a concept that harmonizes all members
of the organization through strengthening followers,
inspiring, stimulating the intellect and considering
individuals as individuals who must be respected
(Bass, 1999). With the rapid changes in the
organizational environment and technological, this
type of leader is allegedly unable to provide
organizational improvements quickly, so It can
encourage the researcher to present an aggressive and
capable type of breakthrough leader to improve
quickly for efficiency and high production results.
2 LITERATURE REVIEW
2.1 Transformational Leadership
(TRF)
Transformational leaders encourage their followers to
have a responsibility in achieving higher
organizational performance (Marn, 2012). The most
effective managers are transformational leaders
(Luthans & Doh, 2012). In Bass's study,
transformational leadership was also categorized for
the first time as an ideal influence (charisma) in which
leaders move followers beyond self-interest,
inspiration, intellectual stimulation, or individual
consideration. The type of transformational
leadership developed by Luthans and Doh (2012)
states that ideal Charisma can also be measured by
two groups as attributes and behavior, inspirational
motivation, intellectual stimulation and individual
consideration.
The dimensions of transformational leadership
according to Dinc, (2015) are:
The first is Idealized Influence (Attribute and
Behavior) Ideal Effect (Nature and Behavior).
Leaders are admired, respected, and trusted (Boerner,
Eisenbeiss, & Griesser, 2007: p. 16). This type of
leader relates to the admiration of their followers; it is
also called the "source of charisma". They enjoy
loyalty, trust, and pride in their followers (Luthans &
Doh, 2012).
The second is inspiration Motivation this refers to
the capacity to motivate followers to achieve high
expectations (Marn, 2012). Leaders who are in this
category have the ability to clearly explain their
vision, beliefs and mission. Thus, they can make easy
statements about what needs to be done (Omar &
Hussin, 2013).
The third is intellectual Motivation. Leaders can
easily direct their followers to find new solutions to
old problems and encourage them to be innovative in
problem solving (Marn, 2012). Approaching the old
situation in a new way and no public criticism of
followers' mistakes is a key element for this
transformational leadership dimension (Boerner et al
2007).
The fourth is Individualized Consideration.
Leaders who have this dimension are able to describe
and develop every demand of their followers
(Luthans & Doh, 2012).
The dimensions mentioned above
transformational leadership are mostly related to job
satisfaction in analyzing the relationship between
leaders and their followers. The influence of
transformational leadership on organizational group
job satisfaction has been clearly defined in many
studies. (Givens, 2008).
In this study the type of transformational
leadership uses the dimensions of Dinc, 2015 which
is the development of Bass 1999, namely Idealized
Infuence, Inspiration Motivation, Intellectual
Motivation and Individualized Consideration.
2.2 Breakthrough Leadership (BTR)
The American Management Association - AMA
(2018) characterizes the breakthrough leadership
style of 5 (five):
The first is leading people by giving examples and
being directly involved, Breakthrough leader leads
people, not companies. They recognize that leading,
motivating, and training is about people and not about
an organization. Understanding what drives
individual behavior is important, such as recognizing
ways to motivate and inspire. Breakthrough leaders
observe others and know that eventually, people want
to live their own lives. Employees want to be
empowered and inspired, but they want to travel
alone.
The power of breakthrough leader does not come
from titles or authority, it comes from the authenticity
and ability to relate to people, involve followers in
organizational processes and involve their energy and
emotions in organizational goals. Breaking leaders
work to inspire and empower individuals, and that
means being flexible enough to connect at various
levels - even when the individual concerned rebels
against authority.
The breakthrough leader said according to and
congruent actions. They recognize that you cannot
The Effect of Transformational Leadership and Breakthrough Leadership on Organization Performance with Employee Motivation as
Intervening Variable at IDX-listed (Indonesia Stock Exchange) Coal Mining Companies in Indonesia
675
lead from behind and have a clear understanding of
what is happening on a narrow road to be effective,
leaders need to be in front of customers and with
employees. Breaking leaders understand the different
generations, cultures and individuals and intrinsic
desires, because they lead people, not processes or
organizations.
The second is to carry out the vision he believes
in, Breakthrough leaders know that vision does not
exist in the distant future. The vision is where you
come from every day. That is how you think, and how
you act. Living a vision means making deliberate
efforts to achieve the present goal and bring the future
to the present. These leaders live in harmony with
their vision. They think vision, act vision, and
communicate the vision. If a leader's goal is to create
an environmentally friendly company, the leader will
do on immediately, even if it will take years to bring
that vision to fullness. Office supplies, cleaning
products, plants in the lobby, and even food served in
the company's canteen will reflect that vision. The
leader's personal choice, from his clothes to the car he
drives, will symbolize his commitment to that vision.
The third is to always raise standards. Breakaway
leaders set very high standards for themselves. They
understand that they need to demand more from
themselves than their followers. In a simple idea a
good example. The leader of the breaker believes that
everything is possible because of that, he consistently
tries to achieve the impossible. The common mistake
made by the new leader is to continue to operate at a
level that takes him to his current position. They
assume that they are good enough, without realizing
that this new promotion requires a truly new standard.
This leads to general standards in "Business-like-
Ordinary" mode without increasing their own
standards. When a leader fails to raise his own
standards, he lowers standards for the entire
organization. By showing that there is never a point
where people can rely on someone's victory, the
breakthrough leader gives an example that
sustainable growth is an important part of the
corporate culture.
The fourth is able to lead, organize and guide,
Breakthrough leaders have three roles as leaders,
managers, and coaches. They lead people, manage
"goods" and practice performance. When leaders
reduce that role to one, they do not fulfill their
potential breakthrough. Roles are mixed up with
nothing done to the maximum. For example, we have
seen many executives place each task on their "to do"
list, operate as if they can manage each task. This type
of leadership weakens the organization. It does not
require the skills of people to manage paper and
projects (goods). However, it requires people's skills
to work with other people. They are different jobs.
When a leader acts as a manager, he must work on the
timeline, the project, and the deadline instead of
developing staff. People cannot be managed; they can
be guided and inspired. They govern themselves. A
leader manages tools, environments and processes
around people to help them succeed and empower
staff by giving them the tools and skills to manage
themselves.
When a leader works with his team and sees
performance problems, his role at that time is
coaching. Again, this is a different function. This
requires one-on-one attention, perhaps strengthening
the vision, providing assistance in developing skills
or ensuring employees are in line with the overall
goals of the company. Great leaders understand the
difference between leaders, managers, and coaches,
and they hone their skills to be good at all three
The fifth is creating new leaders. Breaktrough
leaders are creating more leaders, not followers.
Break-making companies need people at every level
who can lead in line with the company's vision.
Creating leaders requires a certain amount of
openness and confidence from the breakthrough
leader. Someone who feels threatened by the growth
of the people who work for him will likely hinder this
growth. What the breakthrough leader understands is
that the success of the entire organization is a
reflection of its leadership. The team that produced
outstanding performance, growth, and innovation
showed that the team leader was an extraordinary
leader.
Leadership Psychology Australia, (2009) stated in
his research that the breakthrough leader was shown
6 Behavior clearly, with these 6 behaviors it was
hoped that the breakthrough leader would be able to
unlock potential followers who had been locked up.
The first is showing genuine interest in everyone's
development. The emphasis is on genuine interest.
This means taking the time to build a deeper
professional with each individual and to do this in a
personal and sincere way.
The second is listening to people and ask their
ideas. It shows respect for the person and the belief
that they have something valuable to contribute.
Indicates that the leader does not have all the answers
and is ready to listen to other people's thoughts and
ideas.
The third is acting on the advice of followers.
You don't have to act on all the suggestions that
are received but enough to show people not only that
opinion is important, but also that they can influence
the agenda. When people see the impact of their ideas
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676
about results they have more significant ownership of
the decisions made. This is the first step on the path
to empowerment where individuals gradually gain
greater influence, accept greater accountability and
provide better results.
The fourth is establishing challenges for
individuals and show confidence in their ability to
convey. To do this, you need to know everyone well.
You need to know what challenges are right for
everyone and to do this. You need to understand the
alignment between the business and personal goals
and properly assess the learning abilities and talents
of the person concerned.
The fifth is supporting and training. When leaders
provide the support that places a safety net that can
give the individual the courage to step "out on the
branch" and coaching then give them hands on
development needed to master new skills. People will
be more confident to try something new when they
see that there is support available to them.
The sixth is giving feedback and recognition.
Feedback and recognition are important elements in
building relationships because they show the depth of
attention a leader has. Over time they are the main
ingredient in building resilience and maintaining
motivation. Active, constructive involvement with
these leaders not only builds capacity but also
contributes to building self-esteem in the individual
concerned. Together, this behavior has a strong
impact and can provide the necessary support to break
down barriers to personal development. While
behavior can be formed in an integrated manner their
action plan is only effective when delivered by the
leader in an original, consistent and personal
manner.
Havard Business School Publishing 2015 stated
that the more effective leader was through the
breakthrough leader. Breakaway Leadership provides
a new perspective. This type of leader gets more
consideration of ideas to help develop his followers
and improve the mentoring process. (Schofield,
2015). The network produced by the leadership of the
breaker is priceless. (Chung, 2015). Breakthrough
leadership has helped prioritize workloads, be more
comfortable in delegating tasks, maintain a big
picture in mind and constraints on work constraints
can be anticipated so that tasks can focus (Palacios,
2015). Applying Learning Science to Technology
stated that leading breakthrough must master the
digital era, we always do many things that we are now
doing with technology. (Larkin, 2012)
Various explanations of several theories
concerning the leaders of American Management
Association-AMA (2018) and Harvard Business
School Publishing (2012) also from Leadership
Psychology Australia, (2009).
The dimensions of this study used are American
Management Association-AMA (2018), namely: The
fisrt is leading people by giving examples and being
directly involved (exemplary). The second is
Carrying out a vision that he believes is strong
(Visionary). The third that breakthrough Leaders are
always raising the standard. The fourth is leading,
organizing and guiding, the fifth is creating new
leaders. (Regeneration).
2.3 Employee Motivation (EM)
Every person who does something must be driven by
a certain desire. Motivation arises with the existence
of needs that have not been fulfilled, goals to be
achieved or the expectation to be achieved. Work
motivation is a combination of complex
psychological forces in each person. Every individual
has their own motivation which may be different.
Working motivation is a collection of internal and
external forces that cause workers to choose ways to
act in accordance with certain behaviors (Newstrom,
2011).
Newstrom stated that motivation indicators were
divided: The first is engaging and promising of
workers to show the level of enthusiasm, initiative
and effort to continue. The second is the commitment
of the workers bind to the organization and showcase
organizational citizenship actions. The third is
Satisfying. Satisfaction is a reflection of fulfilling
psychological contracts and meeting expectations in
the workplace. The fourth is turnovering a loss of
workers who are highly valued in the organization.
The motivation is a process that takes into account
the intensity, direction and perseverance of individual
efforts towards achieving goals (Robbin and Judge,
2011) Motivation generally relate to individual goals
while organizational goals focus on work-related
behavior. Intensity is related to how strong a person
is, the direction is related to being consistent with the
organization's goals and the dimensions of
perseverance measuring how long people can
maintain their level of business. The motivation is a
strength in a person who has the direction, intensity,
and perseverance of voluntary behavior (McShane
and Glinov, 2010) Kreitner and Kinicki (2011) give
the opinion that the psychological process that
evokes, directs and perseveres in carrying out
voluntary actions directed to reach the goal. Colquitt,
et al. (2011) stated that motivation is a set of energetic
forces that begin both from within and outside the
worker, starting from the business related to work,
The Effect of Transformational Leadership and Breakthrough Leadership on Organization Performance with Employee Motivation as
Intervening Variable at IDX-listed (Indonesia Stock Exchange) Coal Mining Companies in Indonesia
677
considering the direction, intensity and perseverance,
so it is concluded that motivation is an impulse to act
on a series of processes of human behavior by
considering the direction, intensity and perseverance
in achieving goals.
Based on its development, Robbins and Judge
divided motivation theory into two categories,
namely early theories of motivation and
Contemporary theories of motivation. Early theories
of motivation are Abraham Maslow's Hierarchy of
Needs, Theory X and Theory Y Douglasn McGregor,
Two-Factor Theory Frederick Herzberg, and
McClelland's Theory of Needs, while what is
included in Contemporary theories of motivation is
Self-determination Theory, Goal-Setting Theory,
Self-Efficacy Theory, Reinforcement Theory, Equity
Theory / Organizational Justice and Expectancy
Theory Victor Vroom.
Kreitner and Kinicki (2010) divide into two
categories: contents theory of motivation and process
theories of motivation. Contents theories of
motivation focus on identifying internal factors such
as instincts, needs, satisfaction and work
characteristics. Where this theory explains how
motivation is influenced by dynamic interactions
between individuals and the environment in which
they work. While the process of theories of
motivation focuses on explaining the process by
which internal factors and cognitions influence the
motivation of workers. In this case the content
motivation theory is Maslow's Hierarchy of Needs
theory, ERG Alderfer Theory, McClelland's Needs,
Theory and Herzberg's motivational hygiene theory.
While in the theory of processes are Adam's Equity
Theory, Expectancy Theory Vroom, and Theory
Goals. McShane and Von Glinov (2010) stated that
the core of worker theory has four classifications:
Employee Engagement, Employee Drives and Needs,
Rational Decision Model of Employee Motivation
and Organizational Justice.
To achieve certain goals people tend to develop
motivational impulses, McClelland's research in
Newstroom 2011 stated that this motivational
impulse includes 3 (three) things: The first is
achieving motivation. This achievement motivation is
a motivational drive that many people have to pursue
and achieve challenging goals. Characteristics of
achievement-oriented workers are those who work
harder when they receive personal appreciation for
their efforts. People with a strong urge to prescribe
this will be responsible for the results of their actions,
want to change their destiny, seek regular feedback
and try to achieve achievements through individual
and collective efforts.
The second is affiliating motivation. The
motivation for affiliation is an encouragement to
connect with many people on a social basis, work
with people who are as understanding or fit and
experience with the same goal of being a particular
community. They get self-satisfaction around their
friends and want the freedom of work to develop the
relationship. The third is powering motivation. The
motivation for power is an impulse to influence many
people, conduct supervision in changing situations.
People who are motivated for reasons of power
always hope that their power can have an impact on
the organization they lead. This dimension of
employee motivation refers to the views of Kreitner
and Kinicki (2011) is Need Fulfillment,
Discrepancies, Value attainment, Equity, Disposional
/ Genetic Component.
2.4 Organizational Performance (OP)
Organizational performance is the ability to obtain
and process human financial and physical resources
properly to achieve organizational goals.
Organizational performance is the result of an
organization so that it is measured based on its goals
and objectives (Lee, 2008). In a general definition
organizational performance is defined as the product
of interactions between various departments and
sectors in the organization, including financial and
non-financial dimensions (Ouekouak et al, 2013 ),
The fiscal scale is generally based on financial report
data (Hamdam et al, 2012). This criterion is more real
at the level of earnings, the rate of profit growth,
return on equity, return on sales, and return on assets,
the definition of organizational performance is
relatively complicated for non-profit organizations
(Winand et al, 2011), Hishamudin et al (2010) stated
that non-financial indicators consist of: first, user or
beneficiary satisfaction with a program or service;
second, increasing the number of exploiter users, and
third, the quality of public programs and services; and
finally the effectiveness and implementation of public
services and programs can be achieved. Mahmoud &
Yusif, (2012) state non-financial indicators including
service quality, service user satisfaction, supplier
satisfaction, voluntary activities, and program
effectiveness Researchers have shown that
sustainable organizational performance is rooted in
the exploitation of existing capacity and examination
of new opportunities.
Moon, et al. (2018), and Kim et al (2012), stated
that organizational performance would measure the
financial productivity of the organization and the
implementation of business processes in the
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organization. The following are the indicators
presented in measuring organizational performance
in their research:
1. Our organization achieves higher productivity than
productivity performance over the last 3 years.
2. Our organization is more profitable than the
performance of profits over the past 3 years.
3. Our organization achieves a higher ROI than ROI
performance over the past 3 years.
4. Our organization achieves higher sales /
performance than the last 3 years.
5. Our organization is better than other organizations
in terms of information and communication.
6. Our organization is better than others in reducing
labor costs and numbers.
7. Our organizations are better than others public
organizations in bringing complex analytical methods
to be processed in the task.
8. Our organization is better than public organizations
in bringing detailed information to process tasks.
Performance theory was first stated by Don
Giovani (1787), which was interpreted as the act of
performing or presenting drama, concerts, or other
forms of entertainment, or in an English dictionary
meant: the act or process of carrying out or
completing an action, task, or function. and
continuous performance from one task to another so
that it reduces human work towards mechanization.
Comprehensive leadership contingency model
was first developed by Fred Fiedler, where in the
contingency model Fiedler stated that the
performance of a group was greatly influenced by the
suitability of leadership style and the amount of
control and supervision of different situations.
The Baldrige Excellence Awards (United States)
in Colin Talbot 2010 said that leadership greatly
influences organizational performance. Wahab, et al.
(2016) stated that the dimensions of organizational
performance are organization effectiveness and
quality service prologues. Yang, et al. (2013) stated
that organizational performance indicators are
1. Company members obtain valuable sales
knowledge and useful ideas.
2. Open new markets and product / service
opportunities for companies.
3. Achieve important cost efficiency for the
company.
4. Much lower costs for the company
5. Level of awareness of other company's
products.
6. The level of sales and customer use of other
company products
Subramony, et al. (2018) said that organizational
performance is measured based on the growth in the
number of sales. Sales growth is assumed to be an
important performance result for economic growth
3 CONCEPTUAL FRAMEWORK
3.1 Framework Study
Figure 1: Conceptual Framework.
3.2 Hypothesis
By referring to the conceptual framework above, the
author formulates that:
H1: Does transformational leadership have an
influence on employee motivation?
H2: Does breakthrough leadership have an influence
on employee motivation?
H3: Does transformational leadership have an
influence on Organizational Performance?
H4: Does breakthrough leadership have an influence
on organizational performance?
H5: Does employee motivation have an influence on
organization performance?
H6: Does employee motivation mediate
transformational leadership towards organizational
performance?
H7: Does employee motivation mediate
transformational leadership towards organizational
performance?
4 RESEARCH METHODS
This research is quantitative by using data that will be
taken directly from respondents who work in coal
mines in Indonesia as well as using secondary data
from the company's annual performance report. The
number of sampling in this study refers to the opinion
of Hair et al (2010) where According to Hair et al
(2010) the number of samples is at least 5 times the
The Effect of Transformational Leadership and Breakthrough Leadership on Organization Performance with Employee Motivation as
Intervening Variable at IDX-listed (Indonesia Stock Exchange) Coal Mining Companies in Indonesia
679
number of indicators. With this reference, the number
of indicators from the 4 variables that the authors
examined included 20 indicators, so that the sampling
respondents that could be taken were 20 x 5
indicators, 100 respondent. The respondents of this
study are 10 IDX-listed coal mining companies in
Indonesia. The data were analyzed using Structural
Equation Model - Analysis of Moment Structures.
5 RESULTS AND DISCUSSION
5.1 Goodness of Fit Model
The compatibility test of the structural model in SEM
analysis was carried out by looking at several
Goodness of fit model criteria such as Chi Square,
probability, df, GFI, AGFI, TLI, CFI, RMSEA and
RMR. The estimation results of the structural model
are the results of the goodness of fit test the model can
be seen in the figure. The figure below is a complete
structure of variables and indicators that are used in
this research. After analyzing the data, we obtain a
structure that has a goodness of fit Meeting the SEM
AMOS prerequisites are as follows: The model
above has a probability above 0.05 (probability =
0.146), RMSEA is 0.02 (Specifications: 0.02 - 0.08)
thus, the model has been used to test the hypothesis
in this study.
Figure 2: Result of Goodness Fit Model.
The model above has a probability above 0.05
(probability = 0.146), RMSEA is 0.02
(Specifications: 0.02 - 0.08) thus, the model has been
used to test the hypothesis in this study.
5.2 Significant Test
Table 1: Result of significant test for Regression Weight.
Correlation Variable
Estimate
SE
CR
P
Transformational to
Empolyee
Motivation
0.399
0.282
1.413
0.16
Breaktrough to
Emlpoyee
Motivation
0.425
0.220
1.930
0.05
Transformational to
Organizational
Performance
0.167
0.615
0.271
0.79
Breakthrough to
Organizational
Perfomance
-0.606
0.635
-0.953
0.34
Employee
Motivation to
Organizational
Performance
1.238
1.206
1.026
0.31
Significant test requirements are if p value <0.05 then
has a significant effect, and the value of CR> 1.96
then has an influence.
Result of significant test based on the result SEM
(Structure Equation Model) analysis in the table
above, some result is obtained as follows:
A. There is an influence of transformational
leadership on employee motivation
Accepted (H1)
B. There is an influence of breakthrough
leadership on employee motivation
Accepted (H2)
C. There is an influence of transformational
leadership on organizational performance
Accepted (H3)
D. There is an influence of breakthrough
leadership on organizational performance
Not Accepted (H4)
E. There is an influence of employee motivation
on organizational performance Accepted
(H5)
5.3 Sobel Test
In this study, the employee motivation variable as an
intervening variable, to test whether the employee
motivation variable can mediate the effect of
exogenous variables on the organization
performance, so the Sobel test can be conducted.
The hypothesis used in the Sobel test are as in table
below:
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680
Ho: Employee motivation can mediate the effect of
transformational leadership and breakthrough
leadership on organizational performance.
Ha: Employee motivation cannot mediate the effect
of transformational leadership and breakthrough
leadership on organizational performance.
If p Value < 0.05 be accepted.
If p Value > 0.05 be rejected.
Table 2: Result of Sobel Test.
Variable
Correlance
P Value
Transformational
leadership
TRF-EM-OP
0.3978
Breakthrough
leadership
BTR- EM- OP
0.3305
Result of Sobel Test:
A. There is an influence of transformational
leadership on organizational performance
through employee motivation Not
Accepted.(H6)
B. There is an effect of breakthrough leadership on
organizational performance through employee
motivation Not Accepted. (H7)
6 CONCLUSIONS
Transformational leadership is universally
recognized as a concept that harmonizes all members
of the organization through strengthening followers,
inspiring, stimulating the intellect and considering
individuals as individuals who must be respected
(Bass, 1999). In this study the type of
transformational leadership uses the dimensions of
Dinc, 2015 which is the development of Bass 1999,
namely Idealized Influence, Inspiration Motivation,
Intellectual Motivation and Individualized
Consideration.
From the four dimensions of transformational
leadership that stated by Bass 1999 and Dinc 2015,
with the rapid changes in the work environment and
technology, this type of leader is allegedly unable to
provide organizational improvements quickly, so It
can encourage researcher to present an aggressive and
capable type of breakthrough leader to improve
quickly for efficiency and high production results,
with reference to American Management
Association-AMA (2018), Harvard Business School
Publishing (2012) and Leadership Psychology
Australia (2018), and the dimensions used in this
study are American Management Association-AMA
(2018), with five dimensions are leader giving
exemplary, visionary, always have high work
standards, be able to lead, organize and guide and be
able to regenerate quickly.
The research results show that transformational
leadership and breakthrough leadership have a
positive impact to employee motivation, then
transformational leadership has a positive impact on
organizational performance but breakthrough
leadership has not a positive impact on organizational
performance. Employee motivation did not mediate
organizational performance. The novelty of this study
is about breakthrough leadership.
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ICIB 2019 - The 2nd International Conference on Inclusive Business in the Changing World
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