Abstract
Orientation: The failure of an organisation to achieve the goals has become a main challenge that can influence public impressions. One of the strategies to ensure the organisation goal and reputation is performing impression management.
Research purpose: This study aims to investigate the effect of transformational leadership, organisational commitment to employee performance, and to analyse the role of organisational citizenship behaviour (OCB) in mediating the interconnectedness between variables.
Motivation for the study: Investigating the relationship between transformational leadership, organisational commitment and employee performance can shed light on strategies to enhance performance among civil servants in Indonesia.
Research approach/design and method: This research involved a quantitative approach using a self-administered survey method. The population in this study were employees of the Pamekasan District Civil Service Agency in Indonesia, with a total of 6843 employees.
Main findings: Using structural equation modelling, the findings of this research indicate that transformational leadership and organisational commitment both have a positive effect on OCB and employee performance. Additionally, OCB was found to mediate the relationship between transformational leadership and employee performance, as well as between organisational commitment and employee performance.
Practical/managerial implications: The study presents novel empirical insights into the managerial and practical matters in considering these variables for supporting employee performance and organisational goals.
Contribution/value-add: Taking a study at Pamekasan District Civil Service Agency is unique as it has characteristics and ethnics that make it interesting for research, contributing to the enhancement of civil servant performance in Indonesia.
Keywords: employee performance; organisational citizenship behaviour; transformation leadership; organisational commitment; structural equation modelling.
Introduction
Each agency has a goal to perform the best, and institutional performance is inseparable from the performance of employees in fulfilling their responsibilities and duties (Khaled et al., 2021). Therefore, the quality of employees determines the progress of the institution as it contributes to increased productivity, efficiency and effectiveness in meeting targets and objectives. Some studies have remarked that employee performance is closely aligned with the strategic objectives of the organisation (Akdere & Egan, 2020; Jakobsen et al., 2023). Consequently, organisations should ensure that employee performance leaves a favourable impression and that their reputation will escalate. One of the most important aspects of any organisation is its performance, which serves as a measure of how well employees perform their duties and functions as well as the targets and goals they have set for themselves (Kundi et al., 2021).
Organisational citizenship behaviour (OCB) is a factor that has an impact on achieving favourable employee performance (Nurjanah et al., 2020). The importance of OCB cannot be overstated as it plays a crucial role in determining performance (Tistianingtyas, 2021). Organisational citizenship behaviour is a unique aspect of individual behaviour in the workplace that includes not only the ability and willingness to perform basic tasks but also the willingness to undertake additional tasks such as cooperating with colleagues, providing assistance, offering advice, actively participating, delivering extra services to customers and utilising working time efficiently (De Geus et al., 2021; Nurjanah et al., 2020). Organisational citizenship behaviour is an independent individual behaviour that is not directly or explicitly linked to the reward system, but it can enhance the effective functioning of the organisation (Ocampo et al., 2018). Some studies (e.g. Kristian & Ferijani, 2020; Lestari & Ghaby, 2018; Sugianingrat et al., 2019) have shown that OCB has an impact on employee performance.
In addition to OCB, transformational leadership is essential for supporting employee performance and is required in management. Using transformational leadership, the management process will run well and employees will be enthusiastic in carrying out their duties. With good transformational leadership, it is expected to be able to improve OCB, which has an impact on employee performance (Khalili, 2017). Some preliminary research (e.g. Daulay & Rohman, 2022; Maduningtias, 2017; Purwanto et al., 2021) prove that transformational leadership has an effect on OCB. On the contrary, some studies (e.g. Juniartha et al., 2016) found that transformational leadership has no effect on OCB. Hence, this study addresses a research gap by revisiting the relationship between transformational leadership, organisational commitment and employee performance. It goes beyond previous studies by incorporating additional variables that are relevant to supporting organisational goals.
In addition to transformational leadership, organisational commitment has been identified as a predictor of employee performance. Committed employees are more likely to enhance productivity and work quality, which contribute to the organisation’s success. Several studies (e.g. Kristian & Ferijani, 2020; Ridwan, 2020) show that organisational commitment is often linked to a shared sense of purpose and alignment with the organisation’s goals and values. While another study by Harwiki (2016) noted that organisational commitment has no effect either on OCB or employee performance. This highlights the importance of developing an organisational environment that fosters commitment among employees. By doing so, organisations can create a workplace that is dedicated to achieving common objectives and delivering high-quality outcomes.
The contributions of this study are twofold. Firstly, this research contributes to the management literature using a critical view of OCB. This mediating role of OCB offers a novel perspective on how transformational leadership and organisational commitment influence employee performance through the mechanism of discretionary, extra-role behaviours in civil service agencies. This examination of transformational leadership provides insights into its relevance and effectiveness in the context of civil service agencies in Indonesia. Secondly, the study focuses on civil service agencies in Indonesia, which is a specific and important context for examining the relationship between transformational leadership, organisational commitment, employee performance and OCB. Hence, the study provides valuable insights into the public sector and contributes to our understanding of employee behaviour and performance in this specific setting.
Literature review
Underpinning theory
The concept of performance involves comparing work results to expected standards (Dessler, 2017). This definition emphasises the importance of work in evaluating performance. Performance is a person’s achievement with respect to the tasks assigned to them. Performance is the result of a process that refers to and is measured over a certain period of time based on predetermined conditions or agreements. Robbins (2015) identified six indicators for measuring individual employee performance, including quality, quantity, timeliness, effectiveness, independence and work commitment. Some management studies have involved expectancy theory to understand the roles of leadership behaviour, organisational commitment, OCB and performance (Ahmed & Khan, 2016; Rita et al., 2018). Based on this theory, organisational support and commitment can escalate employee performance by stimulating OCB.
According to this theory, employee performance is influenced by their beliefs about the relationship between their efforts, performance and desired outcomes (Heneman & Schwab, 1972). In doing so, employees perceive that engaging in OCB and demonstrating high performance will promote to desirable rewards (e.g. recognition, promotions or increased job security), so they are more motivated to engage in these behaviours and perform well (Hai et al., 2020; Zhang et al., 2019). In addition to expectancy theory, this research involved transformational leadership theory to reach a better understanding of the nexus between variables (Bass & Avolio, 2011). The theory focuses on the role of leaders in inspiring and motivating employees to go beyond their basic job requirements. Transformational leaders are characterised by their ability to inspire and empower their followers, create a shared vision and foster a supportive and developmental work environment (Anderson, 2017). Some scholars have remarked that transformational leaders positively influence employee OCB, commitment and performance (Cho & Kao, 2022; Darto et al., 2015; Rita et al., 2018).
Transformational leadership, organisational citizenship behaviour and employee performance
According to Bass and Avolio (2011), transformational leadership is a type of leadership that aims to enhance the capabilities of individuals and improve the relationship between leaders and their subordinates. This can be evaluated through various factors such as trust, admiration, loyalty and respect towards the leaders. The main objective of this leadership style is to inspire and encourage followers to go beyond their limits to achieve better performance. Robbins and Judge (2013) further explained transformational leaders as leaders who are able to inspire their subordinates to prioritise the interests of the organisation and have a great influence on their subordinates. As previously mentioned, performance is the result of a process that refers to and is measured over a certain period of time based on predetermined conditions or agreements (Buil et al., 2019).
Some preliminary studies have shown that transformational leadership can promote employee performance (Buil et al., 2019; Eliyana & Ma’arif, 2019; Top et al., 2020). In detail, Top et al. (2020) showed that transformational leadership can influence employee performance through inspiration and motivation. Transformational leaders inspire and motivate their employees by creating a compelling vision of the future (Eliyana & Ma’arif, 2019). They can communicate these visions and goals in a way that resonates with employees and helps them see the larger purpose and meaning behind their work (Hetland et al., 2018). Hence, by providing a clear direction and sense of purpose, transformational leaders stimulate employee motivation and commitment to achieving high levels of performance. In addition, transformational leaders provide support, encouragement and recognition to their employees (Fernet et al., 2015). They offer feedback, guidance and resources to help employees overcome challenges and achieve their goals. Therefore, the first hypothesis is presented as follows:
H1: Transformational leadership affects employee performance.
The efficiency of an organisation can be observed through individual work interactions, job satisfaction and the presence of OCB (Robbins & Judge, 2016). Organisational citizenship behaviour, as defined by Robbins (2015), is a voluntary behaviour that aids in the effective functioning of the organisation, but is not a formal job obligation. Organisational citizenship behaviour is a type of individual initiative and choice behaviour that is not penalised if not exhibited. In today’s fast-paced work environment, organisations require positive OCB behaviours such as providing constructive feedback, assisting team members, avoiding unnecessary conflicts and handling work interruptions with grace. Organ (1988) describes OCB as an individual’s voluntary and initiative behaviour that is not linked to the organisation’s formal reward system, but collectively enhances organisational effectiveness. Organisational citizenship behaviour indicators according to Organ (1988) consist of altruism, conscientiousness, sportsmanship, courtesy and civic virtue. Thus, the previous ideas allowed researchers to provide the following hypotheses:
H2: Transformational leadership influences OCB.
H3: Organisational citizenship behaviour affects employee performance.
Organisational commitment
Organisational commitment, as defined by Allen and Meyer (1991), refers to an emotional connection, identification and personal investment in an organisation, as well as a desire to continue being a part of it. Robbins (2015) defines it as the level to which an employee identifies with an organisation and its objectives and wants to continue being a member. Organisational commitment indicators according to Allen and Meyer (1991) consist of affective commitment, continuance commitment and normative commitment. Scholars in the management field have reported that employees with higher organisational commitment are more likely to develop a stronger sense of responsibility towards their organisation (Babalola, 2016). They feel a personal obligation to contribute to the success of the organisation beyond their formal job requirements. This sense of responsibility can drive employees to engage in OCB, such as helping colleagues, volunteering for additional tasks or going the extra mile to achieve organisational goals.
In addition to affecting OCB, organisational commitment can promote employee performance. According to the expectancy theory, individuals’ motivation to perform is influenced by their beliefs about the relationship between effort, performance and outcomes (Heneman & Schwab, 1972). In the context of organisational commitment, employees who have a robust sense of commitment perceive that their efforts will lead to desired outcomes such as job security, recognition and career advancement. The previous mentioned scholars which involved expectancy theory remarked that organisational commitment can drive to a better performance in their organisation (Hanaysha, 2016; Nikpour, 2017; Supriyanto et al., 2020). Thus, the second set of hypotheses is presented as follows:
H4: Organisational commitment has an effect on OCB.
H5: Organisational commitment affects employee performance.
Organisational citizenship behaviour as mediator
Organisational commitment is associated with positive work attitudes, such as job satisfaction and organisational identification. Employees who are committed to their organisation are more likely to engage in OCB, which includes behaviours such as helping others, going beyond formal job requirements and being a good organisational citizen (Sugianingrat et al., 2019). Organisational citizenship behaviour contributes to a positive work context, fostering cooperation, collaboration and supportive relationships among employees (Supriyanto et al., 2020). The effects OCB has on the relationship between transformational leadership and employee performance were investigated similarly by previous researchers in the context of sustainability (Jiang et al., 2017). In this study, the authors concern on the employee performance among civil service agency that is overlooked by antecedent studies. Furthermore, the authors involve OCB as mediator for organisational commitment and employee performance. A prior study by Indarti et al. (2017) can explain the nexus between commitment and performance in the higher education institutions. The basic rationale is that organisational commitment is associated with employees’ willingness to go above and beyond their formal job requirements. From the above, the authors developed the following set of hypotheses:
H6: Transformational leadership influences employee performance through OCB.
H7: Organisational commitment influences employee performance through OCB.
Research method
Design
This research involved a quantitative approach using a survey method. The survey was conducted on the staff members of the Regional Civil Service Agency in Pamekasan Regency. The reason for taking study in this area considers the unique characteristics and ethnicity that make it interesting for research. Also, studies related to employee performance are overlooked by Indonesian scholars. In addition, the local government of Pamekasan Regency is a large and complex organisation with a substantial number of employees. This allows the researchers to obtain a large and diverse sample of employees for the study.
Data collection
The data were gathered from February to March 2023 by undergoing online survey with Google Forms. The sampling technique involved in this research was simple random sampling by taking a list of all staff members and determining a sample of employees undergoing a random table. A total of 115 staff members in the regional civil service agency in Pamekasan Regency participated in this survey. After conducting filter data, 15 inadequate responses were found from respondents; thus, the authors used 100 eligible responses for further estimation using structural equation modelling (SEM).
Measurements
To estimate the primary variables of the research, the authors used instruments from previous studies. To measure transformational leadership, the authors followed indicators from Bass and Avolio (2011), which consist of idealised influence, inspirational motivation, intellectual simulation and individualised consideration. In addition, organisational commitment was estimated using indicators from Allen and Meyer (1991), which cover affective commitment, continuance commitment and normative commitment. Later, OCB was estimated using indicators from Organ (1988) which cover altruism, conscientiousness, sportsmanship, courtesy and civic virtue. Lastly, employee performance was measured using instruments from Robbins (2015), which consists of quality, quantity, timeliness, effectiveness, independence and work commitment. The constructs of the research were accessed on a five-point Likert scale ranging from (1) ‘strongly disagree’ to (5) ‘strongly agree’.
Data analysis
The collected data further analysed using PLS-SEM with SmartPLS v3 software. The adoption of PLS-SEM is appropriate with statistical estimation for exploratory study with the mediation effects and examines complex nexus with a comparatively small sample size. In this study, the authors followed two stages of data analysis: measurement model (outer model), which purposed to estimate convergent validity, construct reliability and discriminant validity. Furthermore, the authors performed a structural model estimation (inner model), which is intended to calculate the final model and hypothesis testing.
Ethical considerations
A waiver of informed consent was granted by the Institutional Review Board Chair of Universitas Negeri Malang on 21 June 2023 with ethical waiver number 21.6.52/UN32.II/LT/2023.
Results and discussion
Demographic characteristics
The respondents in this research consist of 100 employees, with their characteristics based on age, gender, education and length of employment displayed in Table 1. From the table, it is explained that the majority of employees are aged between 32 years and 40 years, male, have at least a high school education and have more than five years of work experience. The local government of Pamekasan Regency was chosen as the research site because it possesses several characteristics that make it ideal for this study.
Measurement model
The measurement model covers reliability and validity estimations. Reliability refers to the extent to which a measurement scale is free from errors and produces consistent results. The reliability of this study was estimated by considering the value of loading factor and composite reliability (CR) that should be higher than the cutoff value of 0.70 (Hair et al., 2019). The output in Table 2 informs that loading factors of items of all the reflective constructs are upper than the thresholds and CR scores are upper than 0.70, indicating to meet the construct reliability criteria. In addition, average variance extracted (AVE) was used to determine the convergent validity with the criteria of AVE should be higher than 0.50. As shown in Table 2, AVE values range from 0.583 to 0.697, which is an indication to meet recommended criteria.
Furthermore, the square root value of the AVE can be utilised to establish the discriminant validity of the taken mean variance. If the AVE root value of each latent variable is greater than the correlation with other variables, then the instrument is considered to have good discriminant validity. Table 3 displays the outcomes of computing the square root value of AVE. This study came to the conclusion that there is considerable discriminant validity because the correlation coefficient between the performance construct and OCB and other components ranges from 0.881 to 0.901. The test results obtained that the AVE root value of a variable exceeds its correlation value with AVE, which exceeds the value of 0.50. Thus, it can be said that the measurement model of this study has discriminant validity.
Structural model
The structural model is intended to estimate research hypotheses, primarily to show whether OCB, organisational commitment and transformational leadership impact employee performance (see Figure 1). During the process, the authors followed the procedures from Hair et al. (2019), to check collinearity, R-square (R2), the size effect of f2 and the relevant prediction of Q2. The collinearity estimation is purposed to know whether the intervariable has high collinearity or not by considering variance inflation factor (VIF) value that should be lower than 5.00 (Hair et al., 2019). From the statistical estimation, the value of VIF ranges from 1.760 to 4.027, remarking to accomplish the suggested criteria. Later, the rule of thumb of R2 values 0.75, 0.50 and 0.25 indicates that the model is substantial, moderate and weak. The output shows that R2 value is moderate with a value above 0.33. In addition, the f2 level estimation shows that the impact of variables involved in this study is categorised as moderate.
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FIGURE 1: PLS-structural equation modelling results. |
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Hypothesis testing results
The causality specified in the model, in particular, the impact of the independent variable on the dependent variable, is tested through hypothesis testing. By examining the t-statistical test results and probability values, it is possible to determine the hypothesis testing requirements (p-values). If the p-value is less than 0.05 (significance 5%) or the t-statistic value exceeds the t-table, then the hypothesis can be accepted (2000). The bootstrap approach can be used to obtain t-statistics for PLS analysis.
Based on Table 4, a coefficient value of big 0.242 and a p-value of 0.018 less than a significance value of 0.05 are derived for the transformational leadership path to OCB. The first hypothesis is therefore statistically accepted because it can be inferred that transformational leadership affects OCB in this way. The relationship between organisational commitment and employee performance has a path coefficient value of 0.674, and the p-value is 0.00 or less than 0.05. Thus, the second hypothesis is statistically supported because organisational commitment does have an impact on OCB. The p-value is 0.002 less than 0.05, and the coefficient value of the transformational leadership approach on employee performance is 0.210. Thus, the third hypothesis is statistically supported because transformational leadership affects employee performance.
The relationship between organisational commitment and employee performance has a path coefficient value of 0.260, and the p-value is 0.031 less than 0.05. Thus, the fourth hypothesis is statistically supported because organisational commitment affects employee performance. The p-value is less than 0.05 and the OCB path coefficient value on employee performance is 0.487. As a result, it can be said that OCB affects employee performance, supporting the statistical validity of the fifth hypothesis. The p-value is 0.037 less than 0.05, and the path coefficient is 0.118. This leads to the conclusion that transformational leadership affects employee performance through OCB, supporting the statistical validity of the sixth hypothesis. A path coefficient value of 0.328 is obtained when examining the impact of organisational commitment on employee performance using OCB, and a p-value of 0.001 is less than 0.05. Therefore, it can be inferred that transformational leadership affects employee performance through OCB, supporting the statistical validity of the seventh hypothesis.
Discussion
The impact of transformational leadership on OCB is significant. A transformational leader takes responsibility for their duties at work, makes decisions that benefit the company, showcases their abilities to attract employees’ attention, recognises and praises employees for their achievements, provides opportunities for employees to achieve success in their own way, and creates opportunities for employees to have successful experiences that enhance OCB in terms of altruism, conscientiousness, sportsmanship, courtesy and civic virtue. Transformational leadership can guide, motivate and build a communication network to help employees reach their goals. The leadership style is reflected in the leader’s words and behaviour, which can influence employees’ job demands and limitations, and their role as good corporate citizens. This study supports the idea that transformational leadership influences OCB, as suggested by Maduningtias (2017), Purwanto et al. (2021) and Daulay and Rohman (2022), but contradicts Juniartha et al. (2016), who found no effect of transformational leadership on OCB.
The level of commitment an employee has towards their organisation can impact their performance and longevity within the company. It is important for organisations to recognise this and work towards developing employee commitment. Providing support, such as positive treatment, awards and a good work atmosphere, can influence positive attitudes and behaviour towards the organisation. Employee commitment is crucial for the success of the organisation, as it can increase productivity and quality of work. Building trust is also important, as employees need to feel valued and not just seen as a factor of production. This study supports previous research that shows the effect of organisational commitment on OCB. The results of this study are in line with Devece et al. (2016) and Ridwan (2020), which states that organisational commitment influences OCB. The results of this study do not support Harwiki (2016) which found that organisational commitment has no effect on OCB.
The performance of employees can be impacted by transformational leadership, which creates feelings of trust, admiration, loyalty and respect towards the leader. Rather than ordering or pushing from behind, leaders must integrate the needs of their subordinates with those of the organisation and society, encouraging competence and development to anticipate challenges and opportunities. Mobilising and empowering employees can have a positive effect on performance, as leadership influences motivation and decision-making. The ability of an agency to effectively guide and empower its employees depends on the role of the leader, and the leader must have the skills to productively influence subordinates to achieve organisational goals. This study corroborates previous research which states that transformational leadership has a significant effect on employee performance. The results of this study support Suzanna (2017), Jufrizen (2018) and Saputra (2023) who state that transformational leadership influences employee performance.
The idea of organisational commitment is related to a form of loyalty to the organisation which involves trust, approval and encouragement to achieve the goals that have been set. These goals are not only beneficial for the institution but also for the individuals who are part of it, including employees. The findings of this study are consistent with previous research conducted by Fu and Deshpande (2014), Khan et al. (2014) which suggest that organisational commitment has an impact on employee performance. The results of this study do not support Harwiki (2016) which found that organisational coxmmitment has no effect on employee performance.
The level of OCB has an impact on employee performance, with higher OCB resulting in better performance. How well employees perform their responsibilities according to established standards serves as a measure of their performance. Organisational citizenship behaviour in an organisation involves behaviours such as helping colleagues, accepting work without complaint, following instructions and being supportive of the organisation’s progress. This creates a positive work environment where employees work together to achieve common goals, leading to improved performance. Studies by Lestari and Ghaby (2018), Sugianingrat et al. (2019) and Kristian and Ferijani (2020) have also found a correlation between OCB and employee performance.
The results show that OCB mediates the effect of transformational leadership on employee performance. This shows that transformational leadership can improve employee performance, if employees have a high level of OCB. Transformational leadership as a process inspires change and empowers employees to achieve higher goals, to improve the abilities employees have so that employees are able to take responsibility for themselves and the processes for the assigned tasks. Robbins (2015) explains that performance is a measure that includes effectiveness in achieving a goal and efficiency, which is the ratio of effective output to input needed to achieve that goal. Transformational leadership affects employee performance, with indicators of charisma, inspirational motives, intellectual simulation and individual attention, so that employees achieve the performance expected of leaders. The OCB among employees can be seen in the form of helping new friends and taking time for other people (altruism). The nature of prudence, such as efficient use of time and high attendance (conscientiousness), contributes to efficiency individually and in groups. In addition, sportsmanship and positive traits can be shown by avoiding complaints. While politeness and obedience, such as through warning letters or prior notification, and conveying information appropriately (courtesy) can be performed by preventing problems and making the best use of time. Lastly, civic virtue is providing the best service for the benefit of the organisation. Civic virtue is providing the best service for the benefit of the organisation.
The impact of organisational commitment on employee performance can be moderated by OCB. If employees exhibit behaviour that aligns with changes and advancements in the organisation, their performance will improve as their level of commitment to the organisation increases. Commitment is viewed as a set of expectations that guide behaviour in a way that fulfils the organisation’s goals and objectives. Dedicated workers are less likely to leave their positions and are highly driven to fulfil their duties, guided by their own personal principles and convictions. This type of behaviour, known as OCB, can enhance employee performance by encouraging them to go above and beyond their job requirements.
Conclusion and recommendation
The results of the study demonstrate that OCB is impacted by transformative leadership. Organisational dedication affects OCB. Performance among employees is influenced by transformational leadership. Employee performance is influenced by organisational commitment. Organisational citizenship behaviour has an impact on worker performance. The impact of transformative leadership on employee performance is mediated through OCB. The impact of organisational commitment on employee performance is moderated by OCB. Employees should therefore communicate work-related information with teammates from different teams in order to strengthen OCB. It would be better for future researchers to look into other factors that were not considered in the model but are predicted to have an impact on OCB and employee performance.
Acknowledgements
The authors would like to thank Universitas Merdeka Malang for supporting this research.
Competing interests
The authors have declared that no competing interest exists.
Authors’ contributions
S.A. contributed to the concept and design, data collection and drafting of the article. B.S.N. contributed to the data collection, analysis, data interpretation and editing of the article. S.A. and B.S.N. confirmed and agreed with the latest version of the article.
Funding information
This research received no specific grant from any funding agency in the public, commercial or not-for-profit sectors.
Data availability
The authors confirm that the data supporting the findings of this study are available within the article.
Disclaimer
The views and opinions expressed in this article are those of the authors and are the product of professional research. It does not necessarily reflect the official policy or position of any affiliated institution, funder, agency, or that of the publisher. The authors are responsible for this article’s results, findings, and content.
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