The Effect of Transformational Leadership on Job Performance and CSR as a Mediator in Indonesian Architectural Design Firms K.M. Fauzan Nur Imami (a*), Aswin Dewanto Hadisumarto (b)
a) Master of Management, Faculty of Economy and Business, University of Indonesia
Jalan Salemba Raya 4, DKI Jakarta 10430, Indonesia
*kmfauzan.nurimami[at]gmail.com
b) Faculty of Economy and Business, University of Indonesia
Jalan Salemba Raya 4, DKI Jakarta 10430, Indonesia
Abstract
Architecture is a growing creative industry in Indonesia. The growth increased the competition between architectural design firms, thus pushing firms to increase their job performance. One of the predictors of job performance is leadership style. A promising leadership style in the architecture industry is transformational leadership. The leadership style can influence job performance directly or indirectly by other means, such as CSR. When a leader encourages CSR activities, an increase of job performance can be expected. This research studies the relationship between transformational leadership and job performance, mediated by CSR in the context of Indonesian architectural design firms. A total of 118 samples is gathered through an online questionnaire with the random sampling technique, all of which are architects who worked at an Indonesian architectural design firm. The data is then analysed using the partial least squares structural equation modelling (PLS-SEM) method. This study found that transformational leadership significantly and positively affect the job performance of Indonesian architectural firms. The findings also showed that transformational leadership positively affects the level of CSR activities, and in turn CSR significantly and positively affects the job performance of Indonesian architectural design firms. these findings confirmed CSR as a strong partial mediator between the relationship of transformational leadership and job performance. The finding of CSR as a partial mediator also strengthened the need to conduct further research about other possible mediators that could explain the relationship between transformational leadership and job performance.
Keywords: Architecture- Transformational Leadership- Corporate Social Responsibility- CSR- Job Performance
Topic: Strategic Management and Ecosystem Business
