The Effect of Transformational Leadership and Management Control System on Organizational Performance through Organizational Culture as an Intervening Variable
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Aug 27, 2025
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Abstract
Public sector organizations are currently experiencing rapid development and change. As one of the public sector entities, the Riau Islands Provincial Government faces various challenges in realizing its vision and mission. In accordance with the 2021-2026 Regional Medium-Term Development Plan (RPJMD) with the vision of 'Realizing a Prosperous, Competitive and Cultured Riau Islands', one of whose missions is to Implement Clean, Open and Service-Oriented Governance. Various challenges in achieving this vision require serious attention, especially in the aspects of Transformational Leadership and management control systems applied to all OPDs in the Riau Islands Province. The purpose of this study is to see the effect of Transformational Leadership and management control systems on Organizational Performance with Organizational culture as an intervening variable. This type of research is Quantitative. The number of samples in this study was 318 respondents in the OPD of the Riau Islands Province. The researcher used the help of the SMART PLS software program, with an approach in modeling using the Structural Equation Model (SEM) analysis. The results of this study all research hypotheses were accepted and Organizational Culture was an intervening variable between Transformational Leadership on Organizational Performance and Management Control System on Organizational Performance.
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References
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Mon, M. D., Kurniawan, I., & Setyawan, A. (2023). The influence of leadership style, motivation, and remuneration on the performance of public sector employees mediated by organizational citizenship behavior. Asian Journal of Management, Entrepreneurship and Social Science, 3(04), 1007–1026.
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Noor, J., Tunnufus, Z., Handrian, V. Y., & Yumhi, Y. (2023). Green human resources management practices, leadership style and employee engagement: Green banking context. Heliyon, 9(12), e22473. https://doi.org/10.1016/j.heliyon.2023.e22473
Nuhu, N. A., Baird, K., & Appuhami, R. (2019). The impact of management control systems on organisational change and performance in the public sector: The role of organisational dynamic capabilities. Journal of Accounting and Organizational Change, 15(3), 473–495. https://doi.org/10.1108/JAOC-08-2018-0084
Olayiwola, R. K., Tuomi, V., Strid, S., & Nahan-Suomela, R. (2024) Impact of Total quality management on cleaning companies in Finland: A Focus on organisational performance and customer satisfaction. Cleaner Logistics and Supply Chain, 10(August 2023). https://doi.org/10.1016/j.clscn.2024.100139
Orikpete, O. F., & Ewim, D. R. E. (2024). Interplay of human factors and safety culture in nuclear safety for enhanced organisational and individual Performance: A comprehensive review. Nuclear Engineering and Design, 416(August 2023), 112797. https://doi.org/10.1016/j.nucengdes.2023.112797
Qalati, S. A., Zafar, Z., Fan, M., Sánchez Limón, M. L., & Khaskheli, M. B. (2022). Employee performance under transformational leadership and organizational citizenship behavior: A mediated model. Heliyon, 8(11). https://doi.org/10.1016/j.heliyon.2022.e11374
Rachbini, W., J Rachbini, D., Santoso, N., Prayitno, H., & Khumaedi, E. (2020). Metode Riset Ekonomi dan Bisnis (Analisis Regresi - SPSS & SEM - LIsrel). In Journal of Chemical Information and Modeling (Vol. 53, Issue 9).
Rana, N. P., Pillai, R., Sivathanu, B., & Malik, N. (2024). Technovation Assessing the nexus of Generative AI adoption , ethical considerations and organizational performance. Technovation, 135(July), 103064. https://doi.org/10.1016/j.technovation.2024.103064
Sarwar, U., Tariq, R., Aamir, M., & Guan, Y. (2023). Comparative Analysis of Female Leadership Styles in Public and Private Sector Universities: A Study in Pakistan. Heliyon, 9(11), e22058. https://doi.org/10.1016/j.heliyon.2023.e22058
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Subramanian, S. N., & Banihashemi, S. (2024). Towards Modern Leadership Styles in the Context of the Engineering Sector. Project Leadership and Society, 34(3), 100133. https://doi.org/10.1016/j.plas.2024.100133
Sulej, K. P., & Iqbal, Q. (2023). Leadership styles and sustainable performance: A systematic literature review. Journal of Cleaner Production, 382(September 2022), 134600. https://doi.org/10.1016/j.jclepro.2022.134600
Tabatabaei, S. (2024). A new model for evaluating the impact of organizational culture variables on the success of knowledge management in organizations using the TOPSIS multi-criteria algorithm: Case study. Computers in Human Behavior Reports, 14(November 2023), 100417. https://doi.org/10.1016/j.chbr.2024.100417
VanderStoep, S. W., & Johnston, D. D. (2019). Research methods for everyday life: blending qualitative and quantitative approaches (Vol. 24).
Vuorenmaa, E. (2024). From distrust to trust: Balancing between forcing and fostering management control systems in a hostile cross-border post-acquisition integration. Management Accounting Research, February, 100889. https://doi.org/10.1016/j.mar.2024.100889
Wiroonrath, S. (2019). Impact of Leader Support on Open Innovation: The Mediating Role of Organizational Culture, Intellectual Property, and Collaboration. Journal of Open Innovation: Technology, Market, and Complexity, 2(5), 104165. https://doi.org/10.1016/j.joitmc.2024.100333
Wu, L. F., Huang, I. C., Huang, W. C., & Du, P. L. (2019). Aligning organizational culture and operations strategy to improve innovation outcomes: An integrated perspective in organizational management. Journal of Organizational Change Management, 32(2), 224–250. https://doi.org/10.1108/JOCM-03-2018-0073
Atobishi, T., Bakir, S. M. A., & Nosratabadi, S. (2024). How Do Digital Capabilities Affect Organizational Performance in the Public Sector? The Mediating Role of the Organizational Agility. Administrative Sciences, 14(2). https://doi.org/10.3390/admsci14020037
Ayers, F. H. (2019). A study of student perception of the validity and reliability in university flight training assessment. Collegiate Aviation Review, 27(1), 20–41. https://doi.org/10.22488/okstate.18.100384
Bairagi, V. (2019). Research Methodology : a Practical and Scientific Approach.
Basantes, B., Ulloa-Herrera, F., Pozo, M., & Camacho, O. (2024). Power management of an off-grid photovoltaic system using a linear algebra based control. Results in Engineering, 23(February), 102375. https://doi.org/10.1016/j.rineng.2024.102375
Bortolotti, T., Boscari, S., & Xiao, C. Y. (2024). Leveraging organizational culture to create competitive value from environmental practices. International Journal of Production Economics, 272(December 2022), 109252. https://doi.org/10.1016/j.ijpe.2024.109252
Dávila, A., Derchi, G. B., Oyon, D., & Schnegg, M. (2024). External complexity and the design of management control systems: a case study. Management Accounting Research, 63. https://doi.org/10.1016/j.mar.2023.100875
Eckersley, P., Ferry, L., & Zakaria, Z. (2018). A “panoptical” or “synoptical” approach to monitoring performance? Local public services in England and the widening accountability gap. Critical Perspectives on Accounting, 25(6), 529–538. https://doi.org/10.1016/j.cpa.2013.03.003
Fatyandri, A. N., Masnita Siagian, Y., Santosa, W., & Setyawan, A. (2023). Does Strategic Leadership Impact Competitive Advantage, Mediated by Diversification Strategy In the Manufacturing Industry? International Journal of Scientific Research and Management, 11(05), 4875–4885. https://doi.org/10.18535/ijsrm/v11i05.em03
Fischer, T., Dietz, J., & Antonakis, J. (2024). A fatal flaw: Positive leadership style research creates causal illusions. Leadership Quarterly, 35(3), 101771. https://doi.org/10.1016/j.leaqua.2023.101771
Gharsi, A. Y. Al, Belhaj, F. A., Nirmala, R., & Alhada, F. A. (2024). Unleashing the university potential: Exploring the impact of staffing autonomy on organizational performance through strategy implementation. International Journal of Educational Research Open, 6(July 2023), 100324. https://doi.org/10.1016/j.ijedro.2024.100324
Hosen, S., Hamzah, S. R., Ismail, I. A., Alias, S. N., Aziz, M. F. A., & Rahman, M. M. (2024). Training & development, career development, and organizational commitment as the predictor of work performance. Heliyon, 10(1), e23903. https://doi.org/10.1016/j.heliyon.2023.e23903
Jeong, M. (2024). The Relationship between Leadership and Performance in Enhancing the Sustainability of Social Enterprises. Sustainability (Switzerland) , 16(8), 1–14. https://doi.org/10.3390/su16083218
Johnson, R. B., & Christensen, L. (2022). Educational Research. In Sage Publications (Vol. 5).
Jutidharabongse, J., Imjai, N., Pantaruk, S., Surbakti, L. P., & Aujirapongpan, S. (2024). Exploring the effect of management control systems on dynamic capabilities and sustainability performance: The role of open innovation strategy amidst COVID-19. Journal of Open Innovation: Technology, Market, and Complexity, 10(1), 100224. https://doi.org/10.1016/j.joitmc.2024.100224
Kolomboy, F., Palutturi, S., Rifai, F., Saleh, L. M., Nasrul, & Amiruddin, R. (2021). Leadership style based on the study of multifactor leadership questionnaire in Palu Anutapura hospital. Gaceta Sanitaria, 35(5), S432–S434. https://doi.org/10.1016/j.gaceta.2021.10.069
Leavy, P. (2017). Research Design : Quantitative, Qualitative, Mixed Methods. In The Guiford Press (Vol. 59). The Guilford Press.
Lee, J. Y., Kim, S., Noh, S., Jang, S. H., & Lee, S. Y. (2024). Paradoxical organizational culture, authoritarian leadership, and international firm performance: evidence from international firms in China. Journal of International Management, 30(1), 101117. https://doi.org/10.1016/j.intman.2023.101117
Leonard A Jason, D. S. G. (2019). Methodological Approaches To Community. Oxford University Press.
Malama, M. F., & Hyder, A. S. (2024). Constructing organizational culture in an international subsidiary: Elekta healthcare services in Greece. International Business Review, 33(4), 102293. https://doi.org/10.1016/j.ibusrev.2024.102293
Mbungu, N. T., Bansal, R. C., Naidoo, R. M., Siti, M. M., Ismail, A. A., Elnady, A., Abokhali, A. G., & Hamid, A. K. (2024). Performance analysis of different control models for smart demand–supply energy management system. Journal of Energy Storage, 90(PB), 111809. https://doi.org/10.1016/j.est.2024.111809
Mon, M. D., Jasfar, F., & Arafah, W. (2019). Role playing organizational commitment of organizational strategy and change management non firm performance. International Journal of Economic, Business and Management Research, 3(10), 109–122.
Mon, M. D., Kurniawan, I., & Setyawan, A. (2023). The influence of leadership style, motivation, and remuneration on the performance of public sector employees mediated by organizational citizenship behavior. Asian Journal of Management, Entrepreneurship and Social Science, 3(04), 1007–1026.
Nguyen, N. P., Hang, N. T. T., Hiep, N., & Flynn, O. (2023). Does transformational leadership influence organisational culture and organisational performance: Empirical evidence from an emerging country. IIMB Management Review, 35(4), 382–392. https://doi.org/10.1016/j.iimb.2023.10.001
Noor, J., Tunnufus, Z., Handrian, V. Y., & Yumhi, Y. (2023). Green human resources management practices, leadership style and employee engagement: Green banking context. Heliyon, 9(12), e22473. https://doi.org/10.1016/j.heliyon.2023.e22473
Nuhu, N. A., Baird, K., & Appuhami, R. (2019). The impact of management control systems on organisational change and performance in the public sector: The role of organisational dynamic capabilities. Journal of Accounting and Organizational Change, 15(3), 473–495. https://doi.org/10.1108/JAOC-08-2018-0084
Olayiwola, R. K., Tuomi, V., Strid, S., & Nahan-Suomela, R. (2024) Impact of Total quality management on cleaning companies in Finland: A Focus on organisational performance and customer satisfaction. Cleaner Logistics and Supply Chain, 10(August 2023). https://doi.org/10.1016/j.clscn.2024.100139
Orikpete, O. F., & Ewim, D. R. E. (2024). Interplay of human factors and safety culture in nuclear safety for enhanced organisational and individual Performance: A comprehensive review. Nuclear Engineering and Design, 416(August 2023), 112797. https://doi.org/10.1016/j.nucengdes.2023.112797
Qalati, S. A., Zafar, Z., Fan, M., Sánchez Limón, M. L., & Khaskheli, M. B. (2022). Employee performance under transformational leadership and organizational citizenship behavior: A mediated model. Heliyon, 8(11). https://doi.org/10.1016/j.heliyon.2022.e11374
Rachbini, W., J Rachbini, D., Santoso, N., Prayitno, H., & Khumaedi, E. (2020). Metode Riset Ekonomi dan Bisnis (Analisis Regresi - SPSS & SEM - LIsrel). In Journal of Chemical Information and Modeling (Vol. 53, Issue 9).
Rana, N. P., Pillai, R., Sivathanu, B., & Malik, N. (2024). Technovation Assessing the nexus of Generative AI adoption , ethical considerations and organizational performance. Technovation, 135(July), 103064. https://doi.org/10.1016/j.technovation.2024.103064
Sarwar, U., Tariq, R., Aamir, M., & Guan, Y. (2023). Comparative Analysis of Female Leadership Styles in Public and Private Sector Universities: A Study in Pakistan. Heliyon, 9(11), e22058. https://doi.org/10.1016/j.heliyon.2023.e22058
Shal, T., Ghamrawi, N., & Naccache, H. (2024). Leadership styles and AI acceptance in academic libraries in higher education. Journal of Academic Librarianship, 50(2), 102849. https://doi.org/10.1016/j.acalib.2024.102849
Simms, B., & Erwin, C. (2021). Research Methods For Social Sciences. In Cambridge University Press. https://doi.org/10.1093/oso/9780190931445.001.0001
Somwethee, P., Aujirapongpan, S., & Ru-Zhue, J. (2023). The influence of entrepreneurial capability and innovation capability on sustainable organization performance: Evidence of community enterprise in Thailand. Journal of Open Innovation: Technology, Market, and Complexity, 9(2), 100082. https://doi.org/10.1016/j.joitmc.2023.100082
Subramanian, S. N., & Banihashemi, S. (2024). Towards Modern Leadership Styles in the Context of the Engineering Sector. Project Leadership and Society, 34(3), 100133. https://doi.org/10.1016/j.plas.2024.100133
Sulej, K. P., & Iqbal, Q. (2023). Leadership styles and sustainable performance: A systematic literature review. Journal of Cleaner Production, 382(September 2022), 134600. https://doi.org/10.1016/j.jclepro.2022.134600
Tabatabaei, S. (2024). A new model for evaluating the impact of organizational culture variables on the success of knowledge management in organizations using the TOPSIS multi-criteria algorithm: Case study. Computers in Human Behavior Reports, 14(November 2023), 100417. https://doi.org/10.1016/j.chbr.2024.100417
VanderStoep, S. W., & Johnston, D. D. (2019). Research methods for everyday life: blending qualitative and quantitative approaches (Vol. 24).
Vuorenmaa, E. (2024). From distrust to trust: Balancing between forcing and fostering management control systems in a hostile cross-border post-acquisition integration. Management Accounting Research, February, 100889. https://doi.org/10.1016/j.mar.2024.100889
Wiroonrath, S. (2019). Impact of Leader Support on Open Innovation: The Mediating Role of Organizational Culture, Intellectual Property, and Collaboration. Journal of Open Innovation: Technology, Market, and Complexity, 2(5), 104165. https://doi.org/10.1016/j.joitmc.2024.100333
Wu, L. F., Huang, I. C., Huang, W. C., & Du, P. L. (2019). Aligning organizational culture and operations strategy to improve innovation outcomes: An integrated perspective in organizational management. Journal of Organizational Change Management, 32(2), 224–250. https://doi.org/10.1108/JOCM-03-2018-0073