Indonesia Coal Mining Companies (IDX-Listed) : The Effect of Transformational, Servant and Breakthrough Leadership on Organization Performance with Intervening Variable Employee Satisfaction

Indonesia Coal Mining Companies (IDX-Listed) : The Effect of Transformational, Servant and Breakthrough Leadership on Organization Performance with Intervening Variable Employee Satisfaction

  • Joko Triraharjo , Doctoral Management, Mercu Buana University, Meruya Selatan, Jakarta, Indonesia
  • Ahmad Badawy Saluy , Doctoral Management, Mercu Buana University, Meruya Selatan, Jakarta, Indonesia

Keywords:

Keywords: Transformational Leadership, Servant Leadership, Breakthrough Leadership, Employee Satisfaction, Organizational Performance

Abstract

The coal mining industry is a type of business that is high capital, risk and technology. Empirical facts state that many companies in the coal mining sector in Indonesia have succeeded, but also many have gone bankrupt. Among these coal mining companies, there are large performance gaps between one another, both in terms of financial performance and production achievements. Their performance was hypothesized to be influenced by leadership style. This research points to analyze the effect of transformational leadership, servant and breakthrough on organizational performance with employee satisfaction as an intervening variable. Respondents from this study were 15 coal mining companies listed on the Indonesia Stock Exchange. This type of research is a quantitative method. Research respondents were 201 people in supervisory to director positions. Data were analyzed using SEM- AMOS (Structural Equation Model – Analysis of Moment Structures). The results showed that transformational leadership and servant did not have a positive and significant impact on employee satisfaction and organizational performance, but breakthrough leadership had a positive and significant effect on employee satisfaction. Employee satisfaction has a positive and significant impact on organizational performance. Employee satisfaction mediates breakthrough leadership on organizational performance. Novelty in this study is the breakthrough leadership variable

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