Transformational Leadership, Knowledge Management, Work Motivation, and Employee Performance among Construction Employees in Jakarta

Bimmo Dwi Baskoro, Sudarmadji Sudarmadji, Suherman Suherman, Ahmad Yani, Robby Simanjuntak

Abstract


This study aims to analyze the influence of transformational leadership (TL) and knowledge management (KM) on employee performance (EP) through work motivation (WM) at construction companies in Jakarta, Indonesia. The data was collected from construction firms that have grade high qualification in Jakarta, Indonesia. A sample of 138 companies representatives was drawn from 138 construction firms in Jakarta. The structural equation modelling – partial least squares (SEM-PLS) was used to test the proposed hypothesizes. TL has a significant effect on EP through WM. KM has a significant effect on EP through WM. The relevance of the research stems from the context of a major city in Jakarta, Indonesia. Furthermore, this research is one of the initial attempts to investigate EP by considering TL and KM and its applicability to Jakarta construction firms.

Keywords


Transformational Leadership; Knowledge Management; Employee Performance; Work Motivation

Full Text:

PDF

References


Afqarina, R., & Dihan, F. N. (2019). The influence of knowledge management and organizational learning on organizational performance through innovation as an intervening variable. Kajian Bisnis Sekolah Tinggi Ilmu Ekonomi Widya Wiwaha, 27(1), 73–91. https://doi.org/10.32477/jkb.v27i1.96

Anyakoha, C. (2019). Job analysis as a tool for improved organizational performance of SMEs in Lagos, Nigeria. Central European Journal of Labour Law and Personnel Management, 2(1), 7–16. https://doi.org/10.33382/cejllpm.2019.02.01

Arman, R., Wardi, Y., & Evanita, S. (2020). The Effect of Leadership and Motivation on Employee Performance. 2nd Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2018), 64, 1043–1051. https://doi.org/10.4108/eai.8-10-2018.2289289

Audretsch, D. B., & Belitski, M. (2020). The role of R&D and knowledge spillovers in innovation and productivity. European Economic Review, 123, 103391. https://doi.org/10.1016/j.euroecorev.2020.103391

Auger, P., & Woodman, R. W. (2016). Creativity and Intrinsic Motivation: Exploring a Complex Relationship. Journal of Applied Behavioral Science, 52(3), 342–366. https://doi.org/10.1177/0021886316656973

Bandera, C., Keshtkar, F., Bartolacci, M. R., Neerudu, S., & Passerini, K. (2017). Knowledge management and the entrepreneur: Insights from Ikujiro Nonaka’s Dynamic Knowledge Creation model (SECI). International Journal of Innovation Studies, 1(3), 163–174. https://doi.org/10.1016/j.ijis.2017.10.005

Beltrán-Martín, I., & Bou-Llusar, J. C. (2018). Examining the intermediate role of employee abilities, motivation and opportunities to participate in the relationship between HR bundles and employee performance. BRQ Business Research Quarterly, 21(2), 99–110. https://doi.org/10.1016/j.brq.2018.02.001

Bronkhorst, B., Steijn, B., & Vermeeren, B. (2015). Transformational Leadership, Goal Setting, and Work Motivation: The Case of a Dutch Municipality. Review of Public Personnel Administration, 35(2), 124–145. https://doi.org/10.1177/0734371X13515486

Cahyono, U. T., Maarif, M. S., & Suharjono. (2014). The impact of transformational leadership on employee performance at local government-owned plantation enterprise Jember. Jurnal Manajemen & Agribisnis, 11(2), 68–76. https://doi.org/10.17358/jma.11.2.68-76

Caillier, J. G. (2014). Toward a better understanding of the relationship between transformational leadership, public service motivation, mission valence, and employee performance: A preliminary study. Public Personnel Management, 43(2), 218–239. https://doi.org/10.1177/0091026014528478

Carless, S. A., Wearing, A. J., & Mann, L. (2000). A short measure of transformational leadership. Journal of Business and Psychology, 14(3), 389–405. https://doi.org/10.1023/A:1022991115523

Castro, M. V. de M., de Araújo, M. L., Ribeiro, A. M., Demo, G., & Meneses, P. P. M. (2020). Implementation of strategic human resource management practices: a review of the national scientific production and new research paths. Revista de Gestão, 27(3), 229–246. https://doi.org/10.1108/rege-10-2018-0102

Cepeda-Carrion, G., Cegarra-Navarro, J. G., & Cillo, V. (2019). Tips to use partial least squares structural equation modelling (PLS-SEM) in knowledge management. Journal of Knowledge Management, 23(1), 67–89. https://doi.org/10.1108/JKM-05-2018-0322

Chammas, C. B., & Hernandez, J. M. da C. (2019). Comparing transformational and instrumental leadership. Innovation & Management Review, 16(2), 143–160. https://doi.org/10.1108/inmr-08-2018-0064

Chawinga, W. D., & Chipeta, G. T. (2017). A synergy of knowledge management and competitive intelligence: A key for competitive advantage in small and medium business enterprises. Business Information Review, 34(1), 25–36. https://doi.org/10.1177/0266382116689171

Cho, J., Schilpzand, P., Huang, L., & Paterson, T. (2020). How and When Humble Leadership Facilitates Employee Job Performance: The Roles of Feeling Trusted and Job Autonomy. Journal of Leadership and Organizational Studies. https://doi.org/10.1177/1548051820979634

Darroch, J. (2003). Developing a measure of knowledge management behaviors and practices. Journal of Knowledge Management, 7(5), 41–54. https://doi.org/10.1108/13673270310505377

Eide, A. E., Saether, E. A., & Aspelund, A. (2020). An investigation of leaders’ motivation, intellectual leadership, and sustainability strategy in relation to Norwegian manufacturers’ performance. Journal of Cleaner Production, 254, 120053. https://doi.org/10.1016/j.jclepro.2020.120053

Eliyana, A., Ma’arif, S., & Muzakki. (2019). Job satisfaction and organizational commitment effect in the transformational leadership towards employee performance. European Research on Management and Business Economics, 25(3), 144–150. https://doi.org/10.1016/j.iedeen.2019.05.001

Farnese, M. L., Barbieri, B., Chirumbolo, A., & Patriotta, G. (2019). Managing knowledge in organizations: A nonaka’s SECI model operationalization. Frontiers in Psychology, 10(December), 1–15. https://doi.org/10.3389/fpsyg.2019.02730

Fernandes, A. A. R., & Solimun. (2017). The mediating effect of strategic orientation and innovations on the effect of environmental uncertainties on the performance of business in the indonesian aviation industry. International Journal of Law and Management, 59(6), 1269–1278. https://doi.org/10.1108/IJLMA-10-2016-0087

Fornell, C., & Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. Journal of Marketing Research, 18(3), 382. https://doi.org/10.2307/3150980

Ganjinia, H., Salimi, M. S. B., & Ghasabsaraei, M. Y. (2014). Knowledge Management Role in Motivating Employees through Supervisory Control and Perceived Organizational Support and Its Impact on Knowledge Sharing in Red Crescent Society of Guilan Province. Kuwait Chapter of Arabian Journal of Business and Management Review, 3(9), 325–333. https://doi.org/10.12816/0018355

Groves, K. S. (2014). Examining Leader–Follower Congruence of Social Responsibility Values in Transformational Leadership. Journal of Leadership and Organizational Studies, 21(3), 227–243. https://doi.org/10.1177/1548051813498420

Hair, Joe F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. https://doi.org/10.2753/MTP1069-6679190202

Hair, Joe F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128

Hair, Joseph F., Sarstedt, M., & Ringle, C. M. (2019). Rethinking some of the rethinking of partial least squares. European Journal of Marketing, 53(4), 566–584. https://doi.org/10.1108/EJM-10-2018-0665

Hamid, M., Maheen, S., Cheem, A., & Yaseen, R. (2017). Impact of Human Resource Management on Organizational Performance. Journal of Accounting & Marketing, 06(01), 1–7. https://doi.org/10.4172/2168-9601.1000213

Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. Advances in International Marketing, 20(2009), 277–319. https://doi.org/10.1108/S1474-7979(2009)0000020014

Hidayat, R., & Heryanto. (2019). The Effect of Motivation and Compensation on Employee Performance With Work Satisfaction As Intervening (Case Study in the Technical Department of PT Semen Padang). Archives of Business Research, 7(11), 78–90. https://doi.org/10.14738/abr.711.6892

Jensen, M., Potočnik, K., & Chaudhry, S. (2020). A mixed-methods study of CEO transformational leadership and firm performance. European Management Journal, 38(6), 836–845. https://doi.org/10.1016/j.emj.2020.05.004

Jensen, U. T., & Bro, L. L. (2018). How Transformational Leadership Supports Intrinsic Motivation and Public Service Motivation: The Mediating Role of Basic Need Satisfaction. American Review of Public Administration, 48(6), 535–549. https://doi.org/10.1177/0275074017699470

Juniari, N. K. E., Riana, I. G., & Subudi, M. (2015). The effect of motivation on work satisfaction and employee performance of government employees at STP Nusa Dua Bali. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 4(11), 823–840.

King, H. C., Pastel, R., Ward, P., & Wallace, C. (2013). Extrinsic motivation and user performance. Proceedings of the Human Factors and Ergonomics Society, 1017–1021. https://doi.org/10.1177/1541931213571227

Kiuru, N., Spinath, B., Clem, A. L., Eklund, K., Ahonen, T., & Hirvonen, R. (2020). The dynamics of motivation, emotion, and task performance in simulated achievement situations. Learning and Individual Differences, 80(March), 101873. https://doi.org/10.1016/j.lindif.2020.101873

Kwan, P. (2020). Is Transformational Leadership Theory Passé? Revisiting the Integrative Effect of Instructional Leadership and Transformational Leadership on Student Outcomes. Educational Administration Quarterly, 56(2), 321–349. https://doi.org/10.1177/0013161X19861137

Kwapong, L. S. A., Opoku, E., & Donyina, F. (2015). The Effect of Motivation on the Performance of Teaching Staff in Ghanaian Polytechnics: the Moderating Role of Education and Research Experience. International Journal of Education and Research, 3(11), 35–48.

Lee, C. S., & Wong, K. Y. (2015). Development and validation of knowledge management performance measurement constructs for small and medium enterprises. Journal of Knowledge Management, 19(4), 711–734. https://doi.org/10.1108/JKM-10-2014-0398

Lendzion, J. P. (2015). Human Resources Management in the System of Organizational Knowledge Management. Procedia Manufacturing, 3(Ahfe), 674–680. https://doi.org/10.1016/j.promfg.2015.07.303

Makambe, U., & Moeng, G. J. M. (2019). The effects of leadership styles on employee performance: a case of a selected commercial bank in Botswana. Annals of Management and Organization Research, 1(1), 39–50. https://doi.org/10.35912/amor.v1i1.274

Muthuveloo, R., Shanmugam, N., & Teoh, A. P. (2017). The impact of tacit knowledge management on organizational performance: Evidence from Malaysia. Asia Pacific Management Review, 22(4), 192–201. https://doi.org/10.1016/j.apmrv.2017.07.010

Ng, T. W. H. (2017). Transformational leadership and performance outcomes: Analyses of multiple mediation pathways. Leadership Quarterly, 28(3), 385–417. https://doi.org/10.1016/j.leaqua.2016.11.008

Nitzl, C., Roldan, J. L., & Cepeda, G. (2016). Mediation analysis in partial least squares path modelling, Helping researchers discuss more sophisticated models. Industrial Management and Data Systems, 116(9), 1849–1864. https://doi.org/10.1108/IMDS-07-2015-0302

Nonaka, I. (1994). A Dynamic Theory of Organizational Knowledge Creation. Organization Science, 5(1), 14–37. https://doi.org/10.1287/orsc.5.1.14

Nonaka, I. (2009). The knowledge-creating company. The Economic Impact of Knowledge. Butterworth-Heinemann. https://doi.org/10.1016/b978-0-7506-7009-8.50016-1

Nonaka, I., & Toyama, R. (2003). The knowledge-creating theory revisited: knowledge creation as a synthesizing process. Knowledge Management Research & Practice, 1(1), 2–10. https://doi.org/10.1057/palgrave.kmrp.8500001

Nonaka, I., Toyama, R., & Konno, N. (2000). SECI, Ba and Leadership: A Unified Model of Dynamic Knowledge Creation. Long Range Planning, 33(1), 5–34. https://doi.org/10.1016/S0024-6301(99)00115-6

Novianti, K. R. (2019). Achieving Competitive Advantage through Knowledge Management Practices: Knowledge-Based View (KBV) Strategy on Indonesia Electricity Sector. Asia Pacific Management and Business Application, 007(03), 163–176. https://doi.org/10.21776/ub.apmba.2019.007.03.3

Peterson, R. A., & Kim, Y. (2013). On the relationship between coefficient alpha and composite reliability. Journal of Applied Psychology, 98(1), 194–198. https://doi.org/10.1037/a0030767

Pradhan, R. K., & Jena, L. K. (2017). Employee Performance at Workplace: Conceptual Model and Empirical Validation. Business Perspectives and Research, 5(1), 69–85. https://doi.org/10.1177/2278533716671630

Priyanto, W. B. (2016). The influence of transformational leadership style and compensation on employee performance with motivation as an intervening variable. Journal of Innovation in Business and Economics, 7(2), 105–114. https://doi.org/10.22219/jibe.vol7.no2.105-114

Samsiah, S. (2018). The influence of knowledge management and information technology on competitive advantage and university performance. Jurnal Manajemen, 22(2), 154–167. https://doi.org/10.24912/jm.v22i2.356

Shahzadi, I., Javed, A., Pirzada, S. S., Nasreen, S., & Khanam, F. (2014). Impact of Employee Motivation on Employee Performance. European Journal of Business and ManagementOnline), 6(23), 2222–2839.

Sharma, K., & Mishra, P. N. (2007). Systematic Knowledge Management Approach: A Requisite for Growth and Competitive Advantage. Management and Labour Studies, 32(3), 375–389. https://doi.org/10.1177/0258042x0703200309

Shujahat, M., Sousa, M. J., Hussain, S., Nawaz, F., Wang, M., & Umer, M. (2019). Translating the impact of knowledge management processes into knowledge-based innovation: The neglected and mediating role of knowledge-worker productivity. Journal of Business Research, 94(October 2017), 442–450. https://doi.org/10.1016/j.jbusres.2017.11.001

Siddiqui, M. N. (2014). Success of an Organization is a result of Employees Performance. Advances in Social Sciences Research Journal, 1(4), 179–201. https://doi.org/10.14738/assrj.14.280

Suharto, Suyanto, & Hendri, N. (2019). The impact of organizational commitment on job performance. International Journal of Economics and Business Administration, 7(2), 189–206. https://doi.org/10.35808/ijeba/227

Sukarta, I. K. R., & Lestari, N. P. N. E. (2019). Knowledge management, compensation, and work motivation in improving employee performance with work spirit as an intervening variable. Jurnal Manajemen Bisnis, 16(3), 105–121. https://doi.org/10.38043/jmb.v16i3.2235

Tyssen, A. K., Wald, A., & Heidenreich, S. (2014). Leadership in the Context of Temporary Organizations: A Study on the Effects of Transactional and Transformational Leadership on Followers’ Commitment in Projects. Journal of Leadership and Organizational Studies, 21(4), 376–393. https://doi.org/10.1177/1548051813502086

Usman, U. M. Z., & Musa, M. A. (2012). The influence of organizational knowledge sharing on employee motivation. Proceedings - 2012 International Conference on Information Retrieval and Knowledge Management, CAMP’12, 87–90. https://doi.org/10.1109/InfRKM.2012.6205011

Wang, C. L., Ahmed, P. K., & Rafiq, M. (2008). Knowledge management orientation: Construct development and empirical validation. European Journal of Information Systems, 17(3), 219–235. https://doi.org/10.1057/ejis.2008.12

Weinstein, N., & Ryan, R. M. (2010). When Helping Helps: Autonomous Motivation for Prosocial Behavior and Its Influence on Well-Being for the Helper and Recipient. Journal of Personality and Social Psychology, 98(2), 222–244. https://doi.org/10.1037/a0016984

Widodo, D. S. (2017). The influence of organizational culture, leadership, and compensation through work motivation on employee performance. Jurnal Manajemen Motivasi, 13(2), 896–908. https://doi.org/http://dx.doi.org/10.29406/jmm.v13i2.723

Williams, L. J., & Anderson, S. E. (1991). Job satisfaction and organizational commitment as predictors of organizational citizenship and in-role behaviors. Journal of Management. https://doi.org/https://doi.org/10.1177%2F014920639101700305

Zaini, Z., & Agustian, R. (2019). The effect of employee competence and work discipline on work effectivity on Immigration Office Class 1 North Jakarta. Transparansi Jurnal Ilmiah Ilmu Administrasi, 2(1), 109–115. https://doi.org/10.31334/trans.v2i1.427

Zainuri, & Mundakir. (2018). The effect of compensation and motivation on the performance of civil servants with job satisfaction as an intervening variable. BMAJ: Business Management Analysis Journal, 1(1), 26–36. https://doi.org/10.24176/bmaj.v1i1.2639

Zohar, D., & Polachek, T. (2017). Using Event-Level Data to Test the Effect of Verbal Leader Behavior on Follower Leadership Perceptions and Job Performance: A Randomized Field Experiment. Group and Organization Management, 42(3), 419–449. https://doi.org/10.1177/1059601115619079




DOI: http://dx.doi.org/10.18415/ijmmu.v8i2.2339

Refbacks

  • There are currently no refbacks.


Copyright (c) 2021 International Journal of Multicultural and Multireligious Understanding

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

International Journal of Multicultural and Multireligious Understanding (IJMMU) ISSN 2364-5369
https://ijmmu.com
editor@ijmmu.com
dx.doi.org/10.18415/ijmmu
facebook.com/ijmmu
Copyright © 2014-2018 IJMMU. All rights reserved.