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Mediation effect of quality of worklife, job involvement, and organizational citizenship behavior in
relationship between transglobal leadership to employee performance
Adya Hermawati, Nasharuddin Mas,
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To cite this document:
Adya Hermawati, Nasharuddin Mas, "Mediation effect of quality of worklife, job involvement, and organizational citizenship
behavior in relationship between transglobal leadership to employee performance", International Journal of Law and
Management, https://doi.org/10.1108/IJLMA-08-2016-0070
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1. Introduction
In the phenomenon of the market economic deterioration that resulted in
massive unemployment and poverty in this country, cooperatives appear as a
savior for those who are marginalized from capitalistic economy. Cooperatives
have been a source of livelihood for 91.25 million people, mostly in rural areas,
while large companies can only absorb 2.52 million people (Nasution in Izzati
[1]). Fuller, states that there are some solutions in the identification of the
phenomenon of the weak "business volume" of an organization, such as the
revitalization of human resources strategy by optimizing the employees'
performances, human resources training & development, recruitment, and human
resources planning. Meanwhile, Subyakto [2] sees that the fundamental obstacle in
cooperatives is a matter of human resources. Hermawati [3][4][5][[6] states that a
good organization, in its growth and development, focuses on human resources in
order to function optimally, efficiently and effectively.
In line with the theories by Bass and Avolio [7], developed by Holt &
Seki [8], Sharkey [9], that the effect of leadership / transglobal leadership directly
(direct effect) contribute in employees' performances. While Hayward [10] proves
that the leadership in an organization has no direct significant effect on employees'
performances and found a negative relationship between the organization's
leadership and employees' performances. The inconsistent outcome becomes a gap
that is studied by Hermawati [4] in "The Mediation Effect of Quality of Work Life
and Job Involvement in Relationship of Transglobal Leadership to Employee
Performance, Case Study in Sharia Bank in East Java, Indonesia, in the Journal of
Research in Business and Management. The results showed that the transglobal
leadership has an indirect effect on employee performance. It means that the effort
to increase employee performance on Transglobal leadership must be through the
implementation of quality of work life and job involvement factor. Analysis and
discussion of the results of the research state that by being mediated by QWL and
job involvement, but the percentage of the gains are still weak, is not maximum
and has not achieved the target yet.
On the other hand, the real phenomenon of the survey results, there is an
indication of the trend that there is a decrease in employee performance in
cooperatives in East Java. It is alleged that it is caused by one factor, namely the
low OCB of the employees. Based on the research by Hermawati [4] on the effect
of QWL mediation and job involvement, as well as the theory references related to
the OCB, this research will examine and describe more about the problem of the
relationship of employee performance on transglobal leadership by the effect of
OCB mediation, quality of work life, and job involvement.
The background of this research becomes an important theme that is
studied in science development, among others: (a) Research on the effect of
transglobal leadership on employee performance if it is associated with the test of
the effect of QWL mediation, job involvement and OCB that have not been
studied widely in Indonesia. (b) By combining all of the variables of QWL
mediation, job involvement, and OCB as a more comprehensive form on the effect
of transglobal leadership on employee performance improvement, so that it is
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2. Theoretical Background
The theories by Smith & Organ [19], Podsakoff et al.[20], Efraty &
Wolfe [21], Eastman [22] state that there is a tight relationship between individual
performance and OCB. It is supported by the research by Biswas & Varma [23]
that proved that the OCB of the employees significantly affects employee
performance, the aspects of OCB have positive effects on employee performance,
it is closely related between OCB with the group's work in terms of quantity, but
there is no close relationship found in the quality of the work.
The theory of organizational is a grand theory used in this research
Robbins [24] and Luthans [25] describe that human is one of the important factors
in the organization. The success of the organization depends on the performance
of the individuals within. In all works, the members determine the success, so that
various efforts to improve the organization's productivity should be started from
the productivity improvements of the members. Productivity can be evaluated and
optimized through performance. Therefore, an understanding of organizational
behavior becomes very important in order to improve performance. In order to
achieve the organizational goals, there should be specific efforts conducted to
manage the organization. Organizational management certainly can not be
separated from the managerial aspects that are closely related to the organization's
activities, one of which is strongly associated with transglobal leadership, quality
of work life, job involvement, OCB, and employee performance.
Sharkey [9] analyzed theoretical problem concerning transactional or
transformational leadership classified in local type of leadership. In initial
development, leadership style emerges in form (version) of local which is not
able to reach aspect globally. Therefore, Sharkey [9] constructs a more global
type of leadership, or known as transglobal leadership. Transglobal leadership is
a leadership which the influence going through boundaries of culture and nation,
which are universal and give big contribution to humanity soul changing human
civilization. Merit by transglobal leaders makes the people’ life more interesting,
more beautiful, more prosperous, more dignified, or better. A transglobal leader
takes their idea and adapts to new environment which is wider and more
complex. A transglobal leader is more likely to support and help establish a
unique approach toward work, whereas a local leader does great in stable
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operation and builds a team having similar thought which will reach the goal
recurrently and reliably.
3.1. Materials
The population in this research is all employees of The Most Outstanding
Cooperatives in East Java Province. The Employees of the Most Outstanding
Cooperatives in East Java Province as the research subject with the following
considerations: (1) the employees are authorized to explain the things related to
the research variables and (2) the employees are the frontliners of the organization
and deal directly with members, customers, and surrounding communities. Based
on data from the Department of Cooperatives and SMEs (2014), the number of
employees as the population size in this research is 660 employees. The
determination of the sample size was by using the Slovin's Formula in the
precision of 5% with the following calculation obtained a sample of 249 people.
The calculation in the sampling area is determined that 249 employees to be a
sample taken from 25 The Most Outstanding Cooperatives based on the region.
3.2. Methods
The Method used to analyze the data in this study is Generalized Structural
Component Analysis (GSCA). GSCA was used for several reasons, first: this
research used the structural model (involving some endogenous variables), second:
the variables involved are the unobservable variables that require measurement
model (the variable measurement based on the indicators). The conceptual
framework of this research are given in Figure 1.
The model consists of one exogenous variable (X1), three
intervening/mediating endogenous variables (M1, M2, and M3), and one pure
endogenous variable (Y1). All variables included in the unobservable, and is
formed by the indicator (as observable variable) using a first-order factor analysis.
This research involved 60 question items that represent 20 indicators of 5 variables
of the research.
Transglobal leadership measures by six indicators; cognitive intelligence
(X11), emotional intelligence (X12), business intelligence (X13), cultural
intelligence (X14), global intelligence (X15), and moral intelligence (X16). The
variable Quality of Work Life (M1) was measured by four indicators, namely
participation (M11), growth and development (M12), compensation-reward (M13),
and work environment (M14). The variable Job Involvement (M2) was measured
by two indicators; self-esteem (M21) and self-image performances (M22). The
variable of Organizational citizenship behavior (OCB) (M3) was measured by five
indicators; sportsmanship (M31), civic virtue (M32), conscientiousness (M33),
altruism (M34), and courtesy (M35). The variable Employee Performance (Y1)
was measured by three indicators: work results (Y11), work behavior (Y12), and
personal characteristic (Y13). Each variable is measured on several indicators by
measuring reflective.
M31
M32
M33
M11 M34
M12 M35
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M13
QWL (M1) OCB (M3)
M14
X11
X12
Y11
X13
Transglobal Employee
leadership Performance Y12
X14 (X1) (Y1)
Y13
X15
X16
Job
M21
Involvement
M22 (M2)
The results of validity and reliability tests on Table 1 show the correlation
value > 0.3, state that all of the items are valid. On the other hand, the results of
reliability test showed a Cronbach alpha value > 0.6, state that all of the variables
are reliable. Thus, the instruments are valid and reliable.
(M1) Participation
Growth and development 3.373 0.664 0.005
Compensation-reward 3.414 0.632 0.006
Work environment 3.333 0.555 0.012
Self-esteem
3.378 0.724 0.000
Job Involvement (M2) performances
Self-image performances 3.289 0.707 0.002
Organizational
citizenship behavior 3.402 0.613 0.013
(OCB) (M3) Sportmanship
Civic virtue 3.382 0.677 0.003
Conscientiousness 3.297 0.542 0.009
Altruisme 3.410 0.695 0.001
Courtesy 3.277 0.538 0.011
Employee Performance
3.369 0.703 0.001
(Y1) Work results
Work behavior 3.361 0.625 0.011
Personal characteristic 3.430 0.632 0.004
altruism that has been run well in environment of the cooperatives in East Java.
The results of the analysis of the measurement model of Organizational citizenship
behavior (OCB) (M3) in GSCA show that those five indicators have a P-value <
0.05 (error or alpha rate of 5%). It shows that the organizational citizenship
behavior (OCB) in the environment of the Cooperatives in East Java is determined
by sportsmanship, civic virtue, conscientiousness, altruism, and courtesy. From the
magnitude of the highest loading factor, it can be seen that altruism is the main
factor in measuring the Organizational citizenship behavior (OCB). It means that
Organizational citizenship behavior (OCB) will be high if the employees are
satisfied on the perceived altruism. In fact, altruism has an average (mean) of 3.410
or perceived as high / good, even it is the highest-perceived value by the
employees than the other four indicators. It suggests that altruism as the strongest
indicator in measuring Organizational citizenship behavior (OCB), has now
perceived well by every employee of the cooperatives in East Java.
The variable Employee Performance (Y1) was measured by three
indicators: work results, work behavior, and personal characteristic. Two
indicators are perceived quite well (mean or average between 2.61 to 3.40) by the
employees of the cooperatives in East Java, work results and work behavior, while
the personal characteristic is perceived as good (mean or average between 3.41 to
4.20) by the employees of the Cooperatives in East Java. It shows that the field
facts, especially in the cooperatives in East Java, the employee performance to
cooperatives is the quite good / quite high condition. The high employee
performance primarily because of the high personal characteristic shown by the
employees. The results of the analysis of the measurement model of employee
performance (Y1) in GSCA show that those three indicators have a P-value < 0.05
(error or alpha rate of 5%). It shows that the employee performance possessed by
the employees of the Cooperatives in East Java is determined by the work results,
work behavior, and personal characteristic. From the magnitude of the highest
loading factor, it can be seen that work results is the main factor in measuring
employee performance. It means that the employees of the cooperatives have a
high employee performance, reflected in the high work results of the employees.
In fact, work results has an average (mean) of 3.369 or perceived as quite high /
quite good. It indicates that work results as the strongest indicator in measuring
employee performance, has now possessed quite well by every employee of the
cooperatives in East Java.
4.3. Hypothesis Testing
The third phase of the research results describes the hypothesis test
between the research variables. Before presenting the feasible results, the linearity
assumption test, and model feasibility test have to be conducted firstly. Table 3
below presents the linearity assumption test and linearity asumption are met. The
normality assumption is not needed in the analysis of the approach used GSCA
given based bootstrap
Table 3. Linearity Assumptions Test
No Effect Result Conclusion
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Table 4 presents the goodness of fit model or adequacy model. The results
show the FIT value of 0.722, and AFIT value of 0.703. Hair, et al. (2011) state
that the values of FIT and AFIT more than 0.5 obtain the good model. The other
two criteria are SRMR 0.014 <0.08 and GFI 0.953 > 0.9 that have met the cut-off
value, then the results of Generalized Structural Component Analysis (GSCA) are
suitable and fit for use, so it will be possible to conduct interpretation for further
discussion.
Table 5. Structural Model Test: Direct Effect
No Relationship Coefficient Std CR P-value
Err
1 Transglobal leadership to
0.400 0.111 3.60 0.000*
QWL
2 Transglobal leadership to
0.357 0.108 3.31 0.001*
Job involvement
3 Transglobal leadership to
0.350 0.108 3.24 0.001*
OCB
4 Transglobal leadership to
0.111 0.106 1.05 0.295ns
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Employee performance
5 QWL to Employee
0.299 0.124 2.41 0.016*
performance
6 Job involvement to
0.304 0.100 3.04 0.002*
Employee performance
7 OCB to Employee
0.267 0.110 2.43 0.015*
performance
* CR > 1.96 and P-value < 0.05 indicates a significant influence,
ns
CR < 1.96 and P-value > 0.05 indicates a not significant influence.
0.357
0.304
Job
Involvement
(M2)
Table 5 presents the results of the structural model test.The results show
that from 7 hypotheses of direct effect, there is 1 hypothesis rejected, while the
others are accepted. Transglobal leadership directly affects the quality of work life
(QWL), Job Involvement, and Organizational citizenship behavior (OCB). The
higher the Transglobal leadership, the higher the effect on quality of work life
(QWL), Job involvement, and Organizational citizenship behavior (OCB).
However, the Transglobal leadership has no direct effect on employee
performance.
Quality of work life, Job Involvement and Organizational citizenship
behavior (OCB) have a direct effect on employee performance. The higher the
Quality of work life, Job Involvement and Organizational citizenship behavior
(OCB), the higher the employee performance. The following will present the
results of hypothesis test of mediation effects.
1 Transglobal leadership ke
0.400 0.111 3.604 0.000*
QWL
2 QWL ke Employee
0.299 0.124 2.411 0.016*
Performance (Y1)
3 Transglobal leadership ke
QWL ke Employee 0.120 0.060 3.040 0.002*
Performance (Y1)
The results of the GSCA-Sobel Test on the effect of quality of work life
mediation on the effect of Transglobal leadership to employee performance as
presented in tables and figures above show that Transglobal leadership has a
direct effect on the quality of work life, and quality of work life has a direct effect
on employee performance. On the results of the test of the effect of mediation,
there is a coefficient of the effect of quality of work life mediation on Transglobal
leadership to the employee performance of 0.120. Given the magnitude of CR >
1.96, and a P-value of < 0.05, it indicates that the quality of work life is a
mediating variable between the effect of Transglobal leadership on full-mediation
employee performance. The coefficient for the positive-marked mediating effect
indicates that the higher the Transglobal leadership, if it is supported by the high
quality of work life, will be the higher the performance of employees. Thus H2 in
this research is accepted.
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Table 7. Mediation Effect Job Involvement in Transglobal leadership
influence of Employee Performance (Y1)
No Relationship Coefficient Std Err CR P-value
1 Transglobal leadership to
0.357 0.108 3.306 0.001*
Job Involvement
2 Job Involvement to
Employee Performance 0.304 0.100 3.040 0.002*
(Y1)
3 Transglobal leadership to
Job Involvement ke
0.109 0.049 3.604 0.000*
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Employee Performance
(Y1)
such as quality of work life, job involvement and OCB concerning the
relationship between transglobal leadership to employee performance. This study
is in line with what has been found by Morris & Sherman [33], Pillai, Schriesheim
and Williams [34] shows the mediation effect of quality of work life; Yiing,
Zaman, & Ahmad [32], Su [35], Yukl [36], Lee [39] shows the mediation effect of
job invomvement; Yiing, Zaman, & Ahmad [32], Chi, Yeh, & Chiou, [37]; Chi,
et al., [38], Luthans, McCaul & Dodd, [40]; shows the mediation effect of OCB,
in relationship between leadership and the employee performance.
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