The Effect of Organizational Culture and Transformational on Employee Performance Through Work Motivation at Bank BJB Regional Office II

Abstract

Employee performance is a determining factor of organizational success, particularly in the banking industry, which faces intense competition and digital transformation. This study aimed to analyze the influence of organizational culture and transformational leadership on employee performance through work motivation as a mediating variable at Bank BJB Regional Office II. This study employed a quantitative approach with an explanatory research design. Data were collected through an online questionnaire distributed to employees of Bank BJB Regional Office II, resulting in 220 usable responses (a 75.3% response rate from the Slovin-based target sample of 292 respondents). Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM–PLS) with a 1,000-resample bootstrapping procedure. The results showed that organizational culture and transformational leadership had positive and significant effects on work motivation (B = 0.447, p < .001; B = 0.401, p < .001), and work motivation had a positive and significant effect on employee performance (B = 0.737, p < .001). Conversely, the direct effects of organizational culture and transformational leadership on employee performance were not significant (p = .225 and p = .202), whereas their indirect effects on employee performance through work motivation were significant (p < .001 for both paths), indicating that work motivation fully mediated these relationships. The model explained 64.7% of the variance in work motivation and 78.7% of the variance in employee performance. These findings strengthen empirical evidence regarding the central role of work motivation as a linking mechanism between organizational culture and transformational leadership in influencing employee performance, particularly in the context of Regional Development Banks (Bank Pembangunan Daerah [BPD]) in Indonesia.