The Influence of Transformational Leadership and Work Environment on Employee Performance with Work Engagement as an Intervening Variable
DOI:
https://doi.org/10.30996/die.v16i02.132472Keywords:
Transformational leadership, work environment, work engagement, employee performanceAbstract
This study investigates the impact of transformational leadership, work environment, and work engagement on employee performance at PT Berau Coal. Using a quantitative approach with Partial Least Squares–Structural Equation Modeling (PLS-SEM) through SmartPLS 4, the study analyzed data collected from employees in the transhipment area, selected through purposive and non-probability sampling methods. The research model included transformational leadership (X1) and work environment (X2) as independent variables, work engagement (Z) as a mediating variable, and employee performance (Y) as the dependent variable. The findings indicate that the work environment significantly and positively influences employee performance, whereas transformational leadership and work engagement, although positive, do not show significant effects. Additionally, work engagement fails to mediate the relationship between transformational leadership and performance as well as between the work environment and performance. These results suggest that the work environment is the most critical factor driving employee performance in this context. The study emphasizes the importance of creating a supportive, safe, and conducive workplace to optimize productivity. The findings provide practical insights for management in developing strategies to enhance employee outcomes, while also contributing to the theoretical understanding of human resource management practices in the mining industry.
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