The relationship between leadership style and employee outcomes: the mediating role of organizational commitment

Objective - The objective of this study is to examine the relationship between transformational leadership styles and job performance and the mediating role of organizational commitment in the relationship between transformational leadership style and job performance in State-Owned Banks in West Kalimantan, Indonesia. Methodology/Technique - The data used to evaluate the model was gathered from the State-Owned Banks in West Kalimantan, Indonesia. 200 permanent employees of those State-Owned Banks participated in the survey. The Structural Equation Modelling (SEM), using LISREL software was employed to examine the relationship among the constructs in this study, which are transformational leadership style, organizational commitment, and job performance. Finding - The findings of this study conclude that transformational leadership style significantly affects job performance and organizational commitment, whereas organizational commitment significantly influences job performance. Briefly, organizational commitment mediates the relationship between transformational leadership styles and job performance in State-Owned Banks in West Kalimantan, Indonesia. Novelty - Most of the previous studies were carried out in western countries, raising doubts about generalizations in research results in developing countries such as Indonesia. Therefore, the novelty of this research is carried out in the context of developing countries, especially in State-Owned Banks in West Kalimantan, Indonesia