THE INFLUENCE OF LEADERSHIP STYLE, ISLAMIC ORGANIZATIONAL CULTURE, AND WORK DISCIPLINE ON EMPLOYEE PERFORMANCE, WITH MOTIVATION AS AN INTERVENING VARIABLE AT PT SURYA BERKAH UTAMA (SBU)

Abstract

Employee performance is one of the factors that determines an organization's success in achieving its goals. Efforts to improve employee performance are influenced by various factors, including leadership style, Islamic organizational culture, work discipline, and work motivation. PT Surya Berkah Utama (SB Ponorogo, as one of Muhammadiyah's (AUM) charitable organizations, applies Islamic values in its organizational management, making it a relevant object for examining the relationships between these variables. This study aims to analyze the influence of leadership style, Islamic organizational culture, and work discipline on employee performance, with work motivation as an intervening variable at PT Surya Berkah Utama (SBU) Ponorogo. This research uses a quantitative approach with a survey method. The research population was all employees of PT Surya Berkah Utama (SBU) Ponorogo, with a sample size of 133 respondents. Data collection was conducted through a questionnaire using a Likert scale. Data analysis used the Structural Equation Modeling–Partial Least Squares method. (SEM-PLS) with the help of SmartPLS software through testing the measurement model (outer model), structural model (inner model), and hypothesis testing directly and indirectly (indirect effect). The results of the study indicate that: (1) the leadership style variable does not have a significant effect on employee performance; (2) the Islamic organizational culture variable has a significant effect on employee performance, amounting to 0.280 with p-values 0.003 < 0.005, and t-statistics of 2.971 > 1.96; (3) the work discipline variable does not have a significant effect on employee performance; (4) the leadership style variable does not have a significant effect on work motivation; (5) the Islamic organizational culture variable has a significant effect on work motivation amounting to 0.397 with p-values 0.000 < 0.005, and t-statistics of 5.014 > 1.96; (6) work discipline variables have a positive and significant effect on motivation of 0.202 with p-values of 0.006 and t-statistics of 2.743; (7) work discipline variables have a positive and significant effect on work motivation of 0.369, with p-values of 0.000, and t-statistics of 4.218; (8) the indirect effect of leadership style on employee performance through work motivation is not significant; (9) the indirect effect of Islamic organizational culture on employee performance through work motivation is positive and significant with indirect effects of 0.146, 0.002 and t-statistics of 3.047; and (10) the indirect effect of work discipline on employee performance through work motivation is positive and significant with indirect effects of 0.075, with p-values of 0.018, and t-statistics of 2.382.