The Effects Of Transformational Leadership And Intrinsic Rewards On Job Performance: The Mediating Role Of Affective Commitment In Government Commercial Institutions
Abstract
This study examines the effects of transformational leadership and intrinsic rewards on job performance, with affective commitment serving as a mediating variable, in Government Commercial Institutions in Indonesia. Public sector organizations face increasing demands to improve performance while maintaining bureaucratic accountability and regulatory compliance. Understanding the mechanisms that influence performance in such institutional settings is therefore essential. A quantitative explanatory approach was employed using survey data collected from 311 civil servants. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The results show that transformational leadership and intrinsic rewards positively and significantly influence job performance. Both variables also have significant positive effects on affective commitment, which in turn enhances job performance. Furthermore, affective commitment partially mediates the relationships between transformational leadership, intrinsic rewards, and job performance. These findings highlight the importance of leadership practices and intrinsic motivational factors in strengthening employee commitment and improving performance in public sector institutions. The study provides empirical evidence from Government Commercial Institutions in Indonesia and offers practical implications for performance management in bureaucratic contexts.
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EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
