THE ROLE OF ORGANIZATIONAL CULTURE IN THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP AND ORGANIZATIONAL INNOVATION ON ORGANIZATIONAL PERFORMANCE

Abstract

This research investigates how transformational leadership and organizational innovation affect organizational performance, with organizational culture acting as a mediator. It explores the links between transformational leadership, innovation, culture, and performance within Batam's manufacturing sector, an area that has not been deeply studied. The study offers new insights by emphasizing the mediating role of organizational culture in boosting organizational change capacity and performance. It highlights how culture strengthens the relationship between leadership, innovation, and performance, stressing the role of an innovative culture in improving organizational efficiency. Using a quantitative method, the research samples 230 manufacturing workers in Batam, adhering to the sampling technique outlined by Hair et al. A correlational approach is applied to assess the connections between variables without manipulating them. The results reveal that organizational culture is crucial in mediating the impact of transformational leadership on innovation, underscoring its role in enhancing organizational performance and change capacity.