The Influence of Transformational Leadership and HRM Practices on Organization Performance: Organization Trust as a Mediator

Andri Ajis, Auna Rosmala Mansyur, Yolanda Dwi Prastica, Nur Damayanti


In today's competitive world, businesses must constantly innovate and improve. As a result, the company is constantly striving to improve its performance to achieve company goals. Organizational performance is an important issue, and the antecedents of organizational performance have been explored in various studies. This study examines the mediating effect of organizational trust in the relationship between transformational leadership, HRM practices, and organizational performance. This study was measured by questionnaires, and the results of hypothesis testing were carried out with Smart PLS 3.0 on 315 respondents at PT. Taspen (Persero). The results show that transformational leadership has no direct effect on organizational performance. Meanwhile, HRM practices are directly significant to organizational performance. Organizational trust was found to mediate the relationship between transformational leadership, HRM practices, and organizational performance. The results of this study have implications for organizations that can help policy makers, especially at PT Taspen (Persero), to better understand what factors can affect organizational performance. Further research more deeply factor that influence work efficiency such as organization culture, motivation, knowledge management.


Transformational Leadership, HRM Practices, Organization Trust, Organizational Performanace.

Full Text:



Abosede, J., Eze, B &., Sowunmi (2018). Human Resource Management and Bank Performance in Nigeria. Izvestiya Journal of Varna University of Economics. 62 (2). p. 117-130

Afacan (2015). Exploring the Mediating Effects Between Transformational Leadership dan Organizational Performance.

Alsafad, Y., & Shadi, A. (2020). Human Resource Management Practices and Employee Performance: The Role of Job Satisfaction. Journal of Asian Finance, Economics, and Business

Amin, M., Aldakhil, A. M., Wu, C., Rezaei, S., & Cobanoglu, C. (2017). The structural relationship between TQM, employee satisfaction and hotel performance. International Journal of Contemporary Hospitality Management.

Arif, S., & Aman A. (2018). Transformational Leadership and Organizational Performance. Journal of Management.

Boerner, S., Eisenbeiss, S.,and Griesser, D. (2007). Follower Behavior and Organizational Performance: The Impact of Transformational Leaders. Journal of Leadership and Organizational Studies.

Chin, W. W., & Newsted, P. R. 1999. Structural Equation Modeling with Small Sample Using Partial Least Square. In Rick Hoyle (Ed), Statistical strategies for small sample research, Thousands Oaks, CA: Sage Publications: 30

Cooper, D. R., & Schindler, P. S. 2008. Business Research Methods. Edisi 10. Inc. New York: The McGraw-Hill Companies.

Cornalba, C., & Giudici, P. (2004). Statistical models for operational risk management. Physica A: Statistical Mechanics and its applications, 338(1-2), 166- 172.

De Jong, S. B., Kunze, F., & Bruch, H. (2017). Organisational consequences of asymmetries in task dependence: The moderating role of HR practices. Human Resource Management Journal, 27(1), 75– 93.

Dirks, K.., & Ferrin, D. (2002). Trust in Leadership: Meta-Analytic Findings and Implications for Research and Practice, Journal of Applied Psychology.

Edison, et. al. (2016) Manajemen Sumber Daya Manusia. Alfabeta. Bandung.

Feirra, J., & Coelho, A. (2021). Dynamic Capabilities and Mediating Effects of Innovation on Competitive Advantages and Firm Performance: The Moderating Role of Organizational Learning Capabilities. Journal of the Knowledge Economy.

Fink, A. (2013). How to conduct surveys. Sage Publications.

Fita, E., & Bezo, A. (2015). Human Resource Management and Its Impact on Organizational Performance. Rev.

Gabriela, E. (2020). Organizational Performance- Theoretical and Practical Approaches Study on Students' Perceptions. International Conference on Business Excellence.

Garzia, M. et al. (2012). Transformational Leadership Influence on Organizational Learning and Innovation.

Ghozali, Imam. (2008). Structural Equation Modeling Concepts and Applications by Amos 16.0 Programme, Agency Publisher Diponegoro, Semarang.

Ghozali, Imam. (2006). Structural Equation Modelling Metode Alternatif dengan Partial Least Square (PLS). Semarang: Badan Penerbit Universitas Diponegoro

Gomes, G., & Wojahn, R.M (2017). Organizational Learning Capability, Innovation, and Performance, Study in SMEs. Revista de Adminstracaon

Gonzales, J. et al. (2021). Innovation in Establish Industries Undergoing Digital Transformation: The Role of Collective Identify and Public Values. Journal of Organization & Management.

Gracia-Morales. (2008). Influence of Transformational Leadership on Organizational Innovation and Performance Depending on The Level of Organizational Learning and The Level of Organizational Learning in the Pharmaceutical Sector. Journal of Organizational Change Management.

Hair, J., Anderson, R, Tatham, R & Black, W.(1998). Multivariate Data Analysis. New Jersey: Prentice Hall, Inc.

Heffernan, M., et al. (2016). Exploring the HRM-Performance Relationship: The Role of Creativity Climate and Strategy. The International Journal of Employee Relations.

Holtgrave, M., Nienebar, A.-M., Tzafrir, S. S., & Schewe, G. (2020). Cooperation in the face of conflict: Effects of top managers' trust beliefs in their firms' major suppliers. British Journal of Management, 31, 253– 273.

Hussain, J. (2017). Enhancing Employee Innovative Behavior: The Moderating Effects of Organizational Tenure. International Journal of Scientific and Research Publications

Jackson, Schuler & Werner. (2011). Pegelolaan Sumber Daya Manusia. Jakarta: Salemba

Janardhanan, S. (2019). Investigating Employees’ Tenure and Performance among Middle Managers: The Moderating Role of Psychological Empowerment. International Journal of Academic Research in Business and Social Sciences.

Khajeh, E. H. (2018). Impact of Leadership Styles on Organizational Performance. Journal of Human Resources Management Research.

Kramer, R. M. (1999). Trust and distrust in organizations: Emerging perspectives and enduring questions. Annual Review of Psychology, 50, 569– 598.

Krista Mala Oktaviani, A. A. (2020). Pengaruh Transformational Leadership Terhadap Employee Engagement Pada Pegawai Pemerintah. Prosiding Seminar Nasional Ilmu Manajemen.

Lee, Y, J. dan Huang C. (2012). The Relationship between balanced Scorecard, Intelectual Capital, Organizational Commitment and Organizational Performance: Verifying a Mediated Moderation Model. American Journal of Business and Management.

Leghari, Jumana, M. (2014). Role of HRm Practices in Performance of Organization and Employee Retention.

Lepak, D. P., Liao, H., Chung, Y., & Harden, E. E. (2006). A conceptual review of human resource management systems in strategic human resource management research. In J. J. Martocchio (Ed.), Research in personnel and human resources management, Vol. 25, pp. 217–271). Elsevier Science/JAI Press.

Malhotra, N.K. (2009).Riset Pemasaran, Edisi keempat, Jilid 1, PT Indeks, Jakarta

Malului, G.M., & Kimencu, L. (2021). Strategic Responses and Organizational Performance of Nairobi City Water and Sewerage Company, Kenya. The Strategic Journal of Business and Change Management.

Mazzei, M., Flynn, C. & Haynie, J. (2016). Moving beyond initial success: Promoting Innovation in Small Business Through High-Performance Work Practices. Business Horizons.

Nataya & Susanto. (2018). The Effect of Product Innovation and Service Innovation towards Marketing Performance 9 Case Study on Plastics Procedure in Surabaya). International Journal of Business and Management Invention.

Nilwala, N. et al. (2017. The scale of Measuring Transformational Leadership in Public Sector Organization in Sri Lanka: With Special Reference to Ministries of Western

Ombui, K. (2016). Effects of Leadership Styles on Performance of the Millenials In the Banking Sector.

Ordonez, P dan Lytras M.D. (2008). Competencies and Human Resource Management: Implication for Organizational Competitive Advantage. Journal of Knowledge Management.

Paais, M & Pattiruhu, J. R (2020). Effect of Motivation, Leadership, and Organizational Culture on Satisfaction and Employee Performance. Journal of Asian Finance, Economics, and Business.

Paliszkiewicz, J., (2013). Organizational Trust as a Foundation for Knowledge Sharing and Its Influence on Organizational Performance. Online Journal of Applied Knowledge Management.

Pare, G & Tremblay (2007). The Influence of High-Involvement Human Resources Practices, Procedural Justices, Organizational Commitment and Citizenship Behaviors on Information Technology Professionals' Turnover Intentions. Group and Organization Management Journal.

Peterson, et al. (2009). CEO Positive Psychological Traits, Transformational Leadership, and Firm Performance in High-Technology Start-Up and Establish Firms. Journal of Management.

Rajapathirana, J., & Hui, Y. (2018). Relationship between innovation capability, innovation type, and firm Performance. Journal of Innovation and Knowledge.

Rana, M. H., & Malik, M. S. (2017). Impact of human resource (HR) practices on organizational Performance: Moderating role of Islamic principles. International Journal of Islamic and Middle Eastern Finance and Management.

Richard P, et al. (2009). Measuring Organizational Performance: Towards Methodological Best Practices.

Rindfleish, A, et al. (2008). Cross-Sectional Versus Longitudinal Survey Research. Journal of Marketing.

Robbin & Judge. 2015. Perilaku Organisasi. Jakarta. Salemba Empat.

Robbins et al. (2009). Organizational Behavior. United States of America: Pearson Prentice Hall.

Sarwono, R & Bernarto. (2020) Leading Millenials to Organization. Management Science Letter.

Safuan (2016). Manajemen Sumberdaya Karyawan Unit Usaha PT pelabuhan Indonesia II (Studi Kasus Human Resource Management KSO Terminal Petikemas Koja). Seminar Sains dan Teknologi.

Sanchez, A. A., Marín, G. S., & Morales, A. M. (2015). The mediating effect of strategic human resource practices on knowledge management and firm performance. Revista Europea de Dirección Economía de la Empresa

Sekaran, U & Bougie, R. (2017). Metode Penelitian untuk Bisnis: Pendekatan Pengembangan-Keahlian (Edisi 2). Salemba Empat

Sekaran, U. & Bougie, R. (2016). Research method for business: A skill building approach (7th edition). New York: Wiley

Sekaran, Uma. (2003). Research Method for Business.New York: John Wiley&Sons, Inc.

Shahbazi, M. M. (2016). An Analysis of The Transformational Leadership Theory. Journal of Fundamental and Applied Sciences.

Shah, M. et al. (2020). The Development Impact of PT. Medco E & P Malaka on Economic Aspects in East Aceh Regency. Budapest International Research and Critics Institute-Journal (BIRCI-Journal). P. 276-286.

Shang, L. (2019). Product Innovation as Panaces to Manufacturing Organization Performance: Evidence from Nigerian Breweries Plc. Asian Journal of Advances Research and Reports.

Shipton, H., Fay, D., West, M., Patterson, M., & Birdi, K. (2005). Managing people to promote innovation. Creativity And Innovation Management Journal. Stiinte Juridice, 13.

Sugiono (2012). Metode Penelitian Kuantitatif dan R&B. Bandung: Alfabeta.

Taamneh, A., Alsaad A and Elrehail H (2018). HRM practices and multifaceted nature of organization performance. EuroMed Journal of Business.

Tangen, S. (2004). Professional Practices Performance Measurement: From Philosophy to Practice. International Journal of Productivity and Performance Management.

Urbach, Nils & Ahlemann, F. 2010. Structural Equation Modeling in Informations Systems Research Using Partial Least Squares. Journal of Information Technology Theory and Application.

Woods, S. (2017). Innovative Work Behavior and Personality Traits Examining The Moderating Effects of Organizational Tenure. Journal of Managerial Psychology


Article Metrics

Abstract view : 101 times
PDF - 33 times


  • There are currently no refbacks.

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


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