The Effect of Transformational Leadership and Breakthrough Leadership on Organization Performance with Employee Motivation as Intervening Variable at IDX-listed (Indonesia Stock Exchange) Coal Mining Companies in Indonesia

Abstract

: Indonesian coal production in 2018 was 528 million tons in total. Of those, 320 million tons were mined by IDX-listed (Indonesia Stock Exchange) coal mining companies. Among those aforementioned coal mining companies, there is a large gap in performance among each other, both in terms of financial performance and production achievement. Their performance was hypothesized to be influenced by leadership style. This study aims to analyze the influence of transformational leadership and breakthrough leadership on organization performance with employee motivation as an intervening variable at IDX-listed coal mining companies in Indonesia. The respondents of this study are 10 IDX-listed coal mining companies in Indonesia. The type of research used is a quantitative method. Research respondents were 102 people at the position of supervisor up to the director. The data were analyzed using Structural Equation Model - Analysis of Moment Structures. The research results show that transformational leadership and breakthrough leadership have a positive impact to employee motivation, then transformational leadership has a positive impact on organizational performance but breakthrough leadership has not a positive impact on organizational performance. Employee motivation did not mediate organizational performance. The novelty of this study is about breakthrough leadership.