Motivation Moderating the Influence of Organizational Culture and

Leadership on Employment Performance

AHMAD BADAWI SALUY1, SANDHI ARMANSYAH1, MASHYUDZULHAK DJAMIL1,

BAMBANG MULYANA1, SRI MARTI PRAMUDENA1, RACHMATULLAILY

TINAKARTIKA RINDA2, ENDRI ENDRI1

1Faculty of Economics and Business

Universitas Mercu Buana

Jl. Meruya Selatan No. 1, Kembangan, Jakarta Selatan 11650

INDONESIA

2Faculty of Economics and Business

Universitas Ibn Khaldun

Jl. Sholeh Iskandar, Kedungbadak, Kec. Tanah Sereal, Kota Bogor, Jawa Barat 16162

INDONESIA

Abstract: - This study aims to determine the test results of the influence of organizational culture and

leadership on employee performance by using intervening variables derived from motivation. There are 87

respondents used in this study. All respondents are employees at the "ABC" university. This study uses a

quantitative approach. The primary data used in this study came from the results of filling out the

questionnaire. Partial Least Square analysis technique with SmartPLS program is used to analyze the data

resulting from filling out the questionnaire. This study produced several findings based on the results of the

analysis has been carried out, it was including: (1) The positive influence is shown by organizational culture

on employee work motivation; (2) The positive influence is shown by leadership on employee work

motivation; (3) The positive influence is shown by organizational culture on employee performance; (4) The

positive influence is shown by leadership on employee performance; (5) The positive effect is shown by work

motivation on performance; (6) The influence of culture on performance can be mediated by motivation; (7)

In addition, motivation can also mediate the influence of leadership on performance. Based on the analysis

that has been done, this study also shows that mediating motivation and competence on employee

performance can be done by career development.

Key-Words: - organizational culture, leadership, performance, motivation, Partial Least Square

Received: May 29, 2021. Revised: April 17, 2022. Accepted: May 14, 2022. Published: June 2, 2022.

1 Introduction

Achieving company goals and also determining

success is largely determined by the human

resources owned. In achieving these goals,

resources are required to be able to improve

performance. Human resources are an important

component that affects the company's

performance [1]. Human resource management in

a company must be able to determine the number,

quality, and placement of an effective workforce

according to the company's needs based on job

descriptions, job specifications, job recruitment,

and job evaluations as well as determine the

withdrawal, selection, and placement of

employees based on the principle of “the right

man in the right place and the right man in the

right job [2].

Employees are important assets that must

be nurtured, cared for, and calculated properly

from all aspects of their rights and obligations.

Good employee development from related

departments can boost employee interests, talents,

and enthusiasm. That way, employees can do

their jobs and responsibilities well [3].

Employees are also a dynamic and flexible

company asset that has high value and can boost

the company’s progress but can have a negative

impact if it is not managed and nurtured properly.

This is because employees are directly related to

employee services to consumers, where service

quality employee to consumers will greatly affect

the company's productivity [4]. Therefore, the

employees who are by the needs of a company

are needed, it is because they can help achieve

company goals [5]. In addition, the employees

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DOI: 10.37394/232015.2022.18.63

Ahmad Badawi Saluy, Sandhi Armansyah,

Mashyudzulhak Djamil, Bambang Mulyana,

Sri Marti Pramudena,

Rachmatullaily Tinakartika Rinda, Endri Endri

E-ISSN: 2224-3496

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who can carry out the tasks that have been

determined by the company are very much

needed. Improving employee performance is

something that will always be done by the

company because it is expected that the

company's goals will be achieved [6]. With the

performance, we will be able to know the

capabilities of our employees. So, the better the

performance, the performance will be optimal.

The one of Capital for companies to achieve

goals is the performance of employees. Thus, the

company leaders must pay attention to the

performance of their employees. According to

Kabeyi [7] states that an activity that aims to

realize in the strategic planning of an

organization, the goals, objectives, vision, and

mission of the organization are called

performance. In carrying out

everything it takes a very strong desire called

motivation, this is important because it can

influence or encourage a person or workgroup

from outside so that they want to carry out

something that has been determined [8].

Activities to get the right people with individual

characteristics is one of the most important

activities in an organization/company, because

this is included in human resource management.

In addition to human resources, the most

important part of an organization is in managerial

terms. Managerial roles and functions greatly

influence the formation of competitive advantage,

planning, organizing, implementing, controlling,

and supervising as predictors of competitive

advantage. Managerial roles and functions can

become components of a competitive advantage

given their unique nature, related to human

resource management, which is a social

interaction built by each diverse individual that

can be used as a company strength, so it will be

difficult for competitors to imitate it even by

applying a management system.

Organizational culture is closely related to

how the organization builds commitment to

realize its vision and mission, win the

competition, and build strength [9]. The success

of implementing organizational culture can be

seen from, among other things, increased

responsibility, increased discipline, compliance

with norms or rules, harmonious communication

and relationships with all levels, increased

concern for fellow employees, reduced

absenteeism and complaints, and if all of this is

implemented properly. Good, then employee

performance will increase. In addition to

organizational culture, leadership is also an

important component in the company [10], [11],

culture is related to the environment [12], and

culture is also a key factor in the success of a

project [13]. A study by Pawirosumarto [14] finds

that leadership, work culture, and work

environment affect a company’s performance. It

has an important role in the sustainability of the

organization.

2 Literature Review

Organizational culture according to Odor [15] is a

system of shared meaning held by members and

this differs from one organization to another.

According to Tuan [16], organizational culture

has 4 measurement dimensions, namely:

Involvement, Consistency, Adaptability, and

Mission. In this study, leadership is defined as a

process of influencing others to do or not do

something that a leader wants. There are 4

dimensions in leadership, based on Sadeghi

andPihie [17], they are Idealized Influence,

Inspirational motivation, Intellectual simulation,

and Individualized consideration. Motivation

according to Setiyani et al. [8] is something that

moves or encourages a person or group of people

to do or not do something. In this study,

motivation has 3 measurement dimensions

Virgiawan et al. [9], namely: Achievement

motivation, Affiliation Motivation, and

Motivation for Power. This study states that the

description of the achievement level from the

implementation of an activity program or policy

in realizing the goals, objectives, vision, and

mission of the organization as outlined through

the strategic planning of an organization, is called

performance. There are 3 measurement

dimensions used to measure performance in this

study, according to Riyanto et al. [11] they

include: Managerial / Work behavior, Attitude,

and Work Results.

In several previous studies, it can be seen that

there is a diversity of results regarding the

influence of organizational culture, leadership,

and work motivation, but on the other hand, there

are also many previous studies that prove the

influence of organizational culture and leadership

on work motivation, as in Study of Virgiawan et

al. [9] stated that motivation Employee work has

a significant influence on employee performance,

in addition to work discipline and compensation

provided by the company. It shows that the

indirect influence of organizational culture and

leadership on employee performance can be

mediated by motivation Mariati and Mauludin

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DOI: 10.37394/232015.2022.18.63

Ahmad Badawi Saluy, Sandhi Armansyah,

Mashyudzulhak Djamil, Bambang Mulyana,

Sri Marti Pramudena,

Rachmatullaily Tinakartika Rinda, Endri Endri

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[18] who proved that motivation is a variable

intervening that mediates the influence of

organizational culture on performance, as well as

previous research conducted by Virgiawan et al.

[9]. Priarso et al. [19] found that the indirect

influence of leadership on performance can be

mediated by motivation. Fitriasari and Mauludin

[20] examined the influence of leadership on

employee performance through organizational

culture and work motivation. The research

findings prove that; 1) leadership does not

directly affect employee performance, 2)

leadership has a positive effect on organizational

culture, 3) leadership has a positive effect on

work motivation 4) leadership has a positive

effect on performance through organizational

culture 5) leadership has a positive effect on

performance through work motivation. Based on

these studies, it can be made a framework for

thinking about the relationship between variables,

namely organizational culture, and leadership as

independent variables, while motivation acts as a

variable intervening and performance as the

dependent variable, thus the relationship between

variables is described in figure 1. The research

model framework presented above shows the

hypotheses proposed in this study, it is including:

 H1: The positive influence of

organizational culture is on work

motivation

 H2: The positive influence of leadership

is on work motivation

 H3: The positive influence of

organizational culture is on employee

performance

 H4: The positive influence of leadership

is on employee performance

 H5: The positive influence of work

motivation is on employee performance

 H6: The influence of organizational

culture on employee performance can be

mediated by motivation

 H7: The influence of leadership on

employee performance can be mediated

by motivation

Fig. 1: Model Framework

3 Methods

In this study, the author uses a quantitative design

with a method explanatory survey. Based on the

research design in question, an analysis of the

research hypothesis was carried out through the

relevant statistical analysis techniques

(quantitative). The choice of the explanatory

survey method is to try to explain the causal

relationship (cause and reciprocity) and it is also

used to test the effect of the independent variable

(X) on the dependent variable (Y) [21]. 665

employees from "ABC" University become the

population of this study. The Slovin formula is

used in determining the number of research

samples. So that the number of samples obtained

is 87 respondents from the total population of 665

employees. The results of distributing

questionnaires are used as data in this study. A

Likert scale of 1-5 is used in this questionnaire,

where the gradations of the answers include:

1=strongly disagree (STS); 2=Disagree (TS);

3=Doubtful (RR); 4=Agree (S); and 5=Strongly

Agree (SS). There are several stages of analysis

to process the data in this study, it is including (1)

descriptive analysis of the characteristics of the

respondents; (2) Descriptive Analysis of

Research Variables, and (3) Partial Least Square

(PLS) Analysis. SPSS program helps in

conducting descriptive analysis of respondents’

characteristics and descriptive analysis of

research variables. Meanwhile, the SmartPLS

version 3 program is used to help PLS analysis.

4 Results

Hypothesis testing in this study came from the

results of research data which were analyzed

using descriptive analysis of respondents'

characteristics, descriptive analysis of research

variables, and PLS analysis. This research

ultimately involved 87 respondents; all

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DOI: 10.37394/232015.2022.18.63

Ahmad Badawi Saluy, Sandhi Armansyah,

Mashyudzulhak Djamil, Bambang Mulyana,

Sri Marti Pramudena,

Rachmatullaily Tinakartika Rinda, Endri Endri

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respondents were employees of the "ABC"

university. Based on gender, age, education, and

years of service of the respondents, male

employees dominate the respondents in this

study. That is 70.1%, with ages between 30-35

years around 41.4%, 59.8% is undergraduate

education and has worked at the “ABC”

university for 5-10 years, it is 41.4%.

4.1 Outer Model PLS

Convergent Validity, Discriminant Validity, and

Composite Reliability testing is a stage of

measurement model testing. Table 1 presented the

results of the test outer PLS model, wherefrom the

table is shown that all indicators on the PLS model

have loading factor > 0.7 and AVE > 0.5 owned by

all constructs. So, from the description above the

PLS model can fulfill the criteria for convergent

validity. Furthermore, in the discriminant validity

test in Table 2, all constructs proved to have met

the required discriminant validity criteria such as

the square root value of the AVE of all constructs

having exceeded the correlation between the

constructs and other constructs, as well as the

HTMT value of the constructs which did not

exceed 0.9 which means that the discriminant

validity has been met in each construct. Based on

the data presented in Table 1, which presents the

results of the composite test, it can be concluded

that the criteria for composite reliability have been

met by all constructs, it is by the requirements, it is

as indicated by Cronbach’s alpha value > 0.7 and

composite reliability > 0.7.

4.2 Testing Inner Model PLS

The test inner model includes an assessment of the

goodness of fit structural model, an assessment of

the path coefficient, significance test has a partial

effect of exogenous variables on endogenous

variables, and calculation of the coefficient of

determination. The test results at this stage will be

used to test the hypothesis in this study.

4.3 Goodness of Fit PLS Model

R Square value, Q Square value, and SRMR value

can be used to assess the Goodness Assessment of

the PLS model. There are three criteria for

assessing the value of R Square, they are weak,

moderate, and good. According to Chin (1998), the

value R2 of 0.67 indicates that the PLS model is

strong, 0.33 indicates the PLS model is in the

moderate category and 0.19 indicates that the PLS

model is in the weak category. The Q square value

is categorized into 3 categories, namely small,

medium, and large, a value Q square of 0.02 is

declared small, a value Q square of 0.15 is

moderate and a value Q square of 0.35 is declared

large. The SRMR value is categorized into 2

categories, namely the model perfect fit if the

SRMR < 0.08; the model is fit if the SRMR is

between 0.08 – 0.10 and the model is not fit if the

SRMR is > 0.10. Good criteria are owned by the

model, as Table 3 presents the result of the

goodness of fit test because it has an R square

endogenous in the strong and moderate categories

and has a large Q square category and an SRMR

between 0.08 - 0.10 so that the model is stated in

the category fit.

4.4 Path Coefficient Evaluation

Based on the data from the evaluation of the path

coefficients presented in Table 4, it is obtained that

the path coefficient of the leadership influence is on

performance, it is 0.535, the path coefficient of

organizational culture on performance is 0.428 and

the path coefficient of motivation on performance

is 0.301, this indicates that the most dominant

factor influencing employee performance is

superior leadership, in addition to organizational

culture and employee motivation. Furthermore, on

the work motivation variable, the path coefficient

for the organizational culture variable on

motivation is 0.208 and the path coefficient for

leadership on motivation is 0.535, this shows that

leadership is the most influential factor on

employee motivation, in addition to organizational

culture factors.

4.5 Direct Effect Significance Test

Results of the direct influence significance test can

be seen in Table 4. The results obtained from this

test, include:

a. In the path that shows the relationship between

organizational culture and motivation (OCMOT),

where 0.005 is the p-value obtained with the t

statistic of 2.598, then the path coefficient with a

positive sign is 0.208. So, from the description

above, it can be concluded that organizational

culture has an influence on employee work

motivation with a path p-value < 0.05, t statistic >

1.96, and a positive path coefficient.

b. In the path that shows the relationship of

leadership influence on motivation (LSMOT),

the p-value obtained is 0.000 with a t statistic of

7.192 and a positive path coefficient of 0.535. So,

the conclusion is that leadership has a positive and

significant effect on employee work motivation,

with a path p-value <0.05, t statistic > 1.65, and a

positive path coefficient.

c. In the path that illustrates the relationship

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Ahmad Badawi Saluy, Sandhi Armansyah,

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Sri Marti Pramudena,

Rachmatullaily Tinakartika Rinda, Endri Endri

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between an organizational culture that influences

performance (OCPERF), they have a p-value of

0.005, then the t statistic value is 2.598 and the path

coefficient shows a positive value, which is 0.208.

So, from exposure, the conclusion is that

organizational culture influences employee

performance, with <0.05 being the path p-value,

while > 1.96 is the t statistic value and the path

coefficient is positive.

d. In the path that shows the relationship of

leadership influence on performance (LSPERF),

the p-value is 0.000, then 7.192 is the t statistic

value, then the path coefficient with a positive sign

is 0.535. So, from the explanation, it can be

concluded that a positive and significant influence

on employee performance is shown by leadership,

they are with a path p-value <0.05, then >1.65 is

the t statistic value, while the path coefficient is

positive.

e. On the path that describes the relationship of

motivation that influences performance

(MOTPERF), the p-value is 0.001, while t

statistic value is 3.165 and 0.301 is the path

coefficient value which is positive. So, from the

explanation above, we can conclude that

motivation on employee performance has a

significant and positive influence. It illustrates that

high work motivation of employees will lead to

high employee performance.

4.6 Indirect Effect Significance Testing

Table 5 shows the results of the analysis which

states that the indirect effect of leadership on

performance mediated by work motivation has a p-

value, it is 0.003 with a t statistic value is 2.854 and

a positive path coefficient, it is 0.161. Because the

p-value <0.05 and t statistic > 1.65, Ho is rejected,

and it can be concluded that the influence of

leadership on performance can be positively

mediated by motivation, which is 2.006, while the

positive path coefficient is 0.063. But Ho is

rejected because the p-value is <0.05 and the t

statistic is > 1.65. And from this explanation, it can

be concluded that positive mediation can be carried

out by motivation

4.7 Coefficient of Determination

The magnitude of the contribution from all

exogenous to endogenous is indicated by the value

of Adjusted R2. Table 3 shows that based on the

results of the analysis, the adjusted R Square value

for the performance variable is 0.641. It means that

64.1% of employee performance is influenced by

organizational culture, leadership, and work

motivation. Then, the adjusted R Square value of

work motivation contained in the work motivation

variable, is 0.448. It shows that work motivation,

leadership, and organizational culture affect 44.8%

of the variance of employee motivation. While the

remaining 11.7% of work variance is influenced by

other factors, which are outside of work

motivation, leadership, and organizational culture.

This research shows that all hypotheses used are

proven, it is by the results of PLS analysis. It is

with a significance level of 5%. Completely, Table

5 presents the results of hypothesis testing.

Table 1. Convergent Validity & Reliability

Variable

Indicator

Factor

AVE

Validates

Convergent

Cronbach's

Alpha

Composite

Reliability

Reliabilities

Organizational

Culture

OC1

0.858

0,8222

valid

0.978

0.981

Reliable

OC10

0.878

OC11

0.892

OC 2

0.898

OC 3

0.884

OC 4

0.913

OC 5

0.927

OC 6

0.936

OC 7

0.940

OC 8

0.903

OC 9

0.936

Leadership

LS1

0.849

0,837

valid

0.981

0.983

Reliable

LS 10

0.929

LS 11

0.926

LS 2

0.937

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Ahmad Badawi Saluy, Sandhi Armansyah,

Mashyudzulhak Djamil, Bambang Mulyana,

Sri Marti Pramudena,

Rachmatullaily Tinakartika Rinda, Endri Endri

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LS 3

0.929

LS 4

0.920

LS 5

0.927

LS 6

0.904

LS 7

0.911

LS 8

0.896

LS 9

0.934

Performance

PERF1

0.923

0,897

valid

0.989

0.990

Reliable

PERF 10

0.965

PERF 11

0.928

PERF 12

0.919

PERF 2

0.934

PERF 3

0.949

PERF 4

0.943

PERF 5

0.939

PERF 6

0.938

PERF 7

0.975

PERF 8

0.976

PERF 9

0.971

Motivation

MOT1

0.915

0,859

valid

0.976

0.980

Reliable

MOT2

0.937

MOT3

0.955

MOT4

0.955

MOT5

0.935

MOT6

0.935

MOT7

0.897

MOT8

0.885

Valid: loading factor > 0.7; Reliable: Cronbach’s alpha > 0.7; Composite Reliability > 0.7

Table 2. Discriminant Validity

Variable

KEP

KIN

MOT

0.906

0.646

0.915

PERF

0.730

0.658

0.947

MOT

0.563

0.653

0.685

0.927

Valid: √𝑨𝑽𝑬 > 𝒓;√𝑨𝑽𝑬 𝑷𝑬𝑹𝑭 = 𝟎. 𝟖𝟗𝟕;√𝑨𝑽𝑬 𝑲𝑶𝑴𝑷 > 𝟎, 𝟖𝟐𝟗;√𝑨𝑽𝑬 𝑴𝑶𝑻 =

𝟎, 𝟗𝟏𝟑;√𝑨𝑽𝑬 𝑷𝑲 = 𝟎, 𝟗𝟏𝟒

Table 3. The goodness of fit Model PLS

Endogen Variable

The goodness of fit Model Parameter

R Square

Q Square

SRMR

PERF

0.654

0.579

0.069

MOT

0.461

0.388

R Square: 0.67 strong; 0.33 moderate; 0.19 weak. Q2: 0.02 small; 0.15 medium; 0,35 big. SRMR: <0.10

fit

Table 4. Direct Effect

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Ahmad Badawi Saluy, Sandhi Armansyah,

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Sri Marti Pramudena,

Rachmatullaily Tinakartika Rinda, Endri Endri

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Path

Path Coefficient

t statistic (|O/STDEV|)

p-value

 OC  PERF

0.428

5.138

0.000

 OC -MOT

0.208

2.598

0.005

 LS  PERF

0.202

1.923

0.027

 LS  MOT

0.535

7.192

0.000

 MOT  PERF

0.301

3.165

0.001

Significant level 5%; path coefficient is significant if p value < 0,05 dan t statistic > 1,96

Table 5. Indirect Effect

Indirect Path

Indirect Path Coefficient

t statistic

p-value

 LS  MOT 

PERF

0.161

2.854

0.002

 OC  MOT 

PERF

0.063

2.006

0.023

Significant level 5%; path coefficient is significant if p value < 0,05 dan t statistic > 1,96

Fig. 2: Result of PLS Estimation-Bootstrapping

5 Conclusion

This study concludes that: (1) The positive

influence is shown by organizational culture on

motivation; (2) The positive influence is shown

by leadership on motivation; (3) The positive

effect is shown by motivation on employee

performance; (4) The positive influence is shown

by organizational culture on employee

performance; (5) The leadership on employee

performance has a positive influence; (6) The

culture on this performance has an influence,

which the motivation can mediate; (7) The

influence of leadership on performance mediated

by motivation. For companies, based on the

research results obtained that the factors that

greatly influence employee performance are

organizational culture and leadership, thus, to

increase employee performance, the

organizational culture developed in this

university must be good and can increase

employee motivation. For further researchers, it is

hoped that they can conduct research from

different models. Like, adding other variables,

which did not exist in this study. It can be done in

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DOI: 10.37394/232015.2022.18.63

Ahmad Badawi Saluy, Sandhi Armansyah,

Mashyudzulhak Djamil, Bambang Mulyana,

Sri Marti Pramudena,

Rachmatullaily Tinakartika Rinda, Endri Endri

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Volume 18, 2022

the hope that it will affect employee performance.

Examples of these variables include

compensation, competence, work discipline or

also job satisfaction.

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Mashyudzulhak Djamil, Bambang Mulyana,

Sri Marti Pramudena,

Rachmatullaily Tinakartika Rinda, Endri Endri

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Contribution of Individual Authors to

the Creation of a Scientific Article

(Ghostwriting Policy)

Conceptualization: Ahmad Badawi Saluy,

Sandhi Armansyah. Data curation: Sandhi

Armansyah, Bambang Mulyana. Formal

analysis: Endri Endri, Ahmad Badawi Saluy,

Mashyudzulhak Djamil. Funding acquisition:

Sri Marti Pramudena, Rachmatullaily Tinakartika

Rinda. Investigation: Sandhi Armansyah, Ahmad

Badawi Saluy. Methodology: Endri Endri,

Sandhi Armansyah. Project administration: Sri

Marti Pramudena, Bambang Mulyana.

Resources: Ahmad Badawi Saluy, Sandhi

Armansyah. Software: Ahmad Badawi Saluy,

Sandhi Armansyah. Supervision:

Mashyudzulhak Djamil, Rachmatullaily

Tinakartika Rinda. Validation: Endri Endri,

Sandhi Armansyah. Visualization: Ahmad

Badawi Saluy, Sandhi Armansyah. Writing –

original draft: Ahmad Badawi Saluy, Sandhi

Armansyah. Writing – review & editing: Endri

Endri.

Creative Commons Attribution License 4.0

(Attribution 4.0 International, CC BY 4.0)

This article is published under the terms of the

Creative Commons Attribution License 4.0

https://creativecommons.org/licenses/by/4.0/deed

.en_US

WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT

DOI: 10.37394/232015.2022.18.63

Ahmad Badawi Saluy, Sandhi Armansyah,

Mashyudzulhak Djamil, Bambang Mulyana,

Sri Marti Pramudena,

Rachmatullaily Tinakartika Rinda, Endri Endri

E-ISSN: 2224-3496

670

Volume 18, 2022