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Jurnal Akuntansi dan Keuangan, Vol. 25, No. 2, November 2023, 79-90 DOI: https://doi.org/10.9744/jak.25.2.

79-90
ISSN 1411-0288 print / ISSN 2338-8137 online

The Role of Leadership Function as A Mediating Variable


Between Leadership Behaviour and Organizational Performance

Stefanie Maria Natasha Nugroho1, Niluh Putu Dian Rosalina Handayani Narsa2*
1,2Accounting Department, Universitas Airlangga, Jalan Airlangga 4-6, Surabaya 60286, Indonesia
*Corresponding author; Email: niluh.narsa@feb.unair.ac.id

ABSTRACT

This study examined the relationship between leadership behaviour and organizational
performance and the relationship between leadership behaviour and leadership functions. It
also analyzed the relationship between leadership functions and organizational performance
and the relationship between leadership behaviour and organizational performance using
leadership functions as mediating variables. The research data was obtained from 282 state
apparatus staff from Surabaya's 62 Regional Working Unit Organizations. The results of this
study identified a positive relationship between leadership behaviour and organizational
performance, as well as demonstrated that leadership functions can partially mediate the
relationship between leadership behaviour and organizational performance. This research is
expected to provide insight to leaders in the Regional Working Unit Organization on the
importance of good behaviour and leadership functions in leading the organization to achieve
better performance.

Keywords: Leadership behaviour; leadership function; organizational performance.

INTRODUCTION performance. In other words, the better the leader's


performance in guiding members and showing a
One of the indicators that effective organizatio- leadership attitude, the better an organization's
nal performance has been achieved can be observed overall performance. However, several other studies
by leaders with the power to influence a group to have shown conflicting results, such as research
achieve the organization's goals [39; 60]. Fiedler's conducted by [5], who found a negative relationship
contingency theory [18] explains the importance of between leadership and organizational performance
a leader's role in an organization: the group can run due to other factors of individuals and the work
effectively if there is a match between the leadership environment that also affect performance. These
style and its subordinates. In such roles, the leader studies align with the research of [34], which found
can control and influence the situation. a negative relationship between leadership beha-
According to [50], leadership behaviour is viour and organizational performance. Another
reflected in a person's overall attitude, as shown conflicting result comes from the work of [19], which
through his speech and behaviour as a member of states that leadership is negatively related to the
an organization. Leaders have an important role in organization's performance. It is because the more
managing members' various needs and interests. advanced the leadership style, the more complex the
They carry out organizational activities to enable performance success will be.
effective work implementation [24]. With guidance The inconsistency of past study results on the
from the leader, the connection between individual relationship between leadership and organizational
and organizational goals strengthens, resulting in performance indicates the need for situational
members working to achieve their personal goals variables that can connect those variables. [31]
instead of focusing on achieving the organization's shows that leadership functions are situational
goal [53]. Therefore, the leader must be present and variables that can mediate the behaviour of leaders
apply the proper leadership behaviour. to influence the organization's performance. Accord-
Some research on the relationship between ing to [23], leadership functions relate to tasks,
leadership and organizational performance indi- problem-solving and organizational maintenance.
cates a positive relationship. For example, [38] [57] states that the function of a leader is to create a
states that leadership effectiveness can signifi- vision. Therefore, from the various definitions of
cantly improve organizational performance. Simi- leadership functions, the function of leadership is
lar studies conducted by [49] and [51] found that the work done by a leader to mobilize members to
leadership positively relates to organizational achieve organizational goals through various

79
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means. The leadership function is the realization of Structural Equation Modelling (PLS-SEM) as a
ideal conditions related to the work environment, statistical analysis method, a positive relationship
which are achieved through several leadership was found between leadership behaviour and
behaviours. Therefore, the leadership function plays organizational performance. The data also demons-
a vital role in improving an organization's perfor- trates that leadership functions can partially
mance. With solid cooperation between leadership mediate the relationship between leadership beha-
functions in the organization, effective organizatio- viour and organizational performance. A literature
nal performance can be achieved. Therefore, the review follows systematic writing. The study will
function of leadership can act as a mediation then proceed with research methods, research
variable. This conclusion is supported by previous results, and finally, conclusions and suggestions.
researchers, such as [17] and [26]. This research also
corresponds to the limitation of previous research Contingency Theory
[31]. Differing from his work, we treat each of the
indicators of leadership behaviour and leadership The contingency theory proposed by [18] views
function as a single construct that shapes the leadership as a process in which a leader's ability to
variables. Besides that, as long as we know, there is exert influence depends on the group task situation.
still no research in Indonesia that tries to discuss In other words, a leader's understanding of the situ-
the variables of this research. ation determines the leader's performance. The
The research related to leadership behaviour, contingency approach and the situational approach,
leadership function, and organizational perfor- based on the views of [52], state that different mana-
mance describes how leadership behaviour leads to gement techniques are needed to achieve organiza-
leadership functions that play an essential role in an tional goals in various situations or environments.
organization's performance. This research will be
conducted at the Regional Working Organization in The Relationship Between Leadership
Surabaya. It is hoped that this research can Behaviour and Organizational Performance
contribute to local government by providing insight
into how to improve the organization's performance As stated in the contingency theories of [18],
and restore public trust. This is becoming an the contingency problem is entirely the responsibi-
important subject of study because public sector lity of the leader. One of the contingency problems is
organizations' characteristics differ from those of uncertainty in a dynamic environment. In order to
private organizations [37]. Related to leadership solve existing contingency problems, good leader-
issues, it is recognized that leaders in the public ship behaviour and leadership functions are needed.
sector tend to avoid risk and see innovation as a Leadership behaviour and effective leadership func-
threat, compared to leaders in the private sector tions in an organization will result in effective mem-
[25]. Thus, delving deeper into this fascinating issue ber performance, which will improve performance
will shed light on further exploration and under- in the organization.
standing. An organization is a body of several members.
The results of this study are a continuation of Each member is an overview of how the organiza-
research conducted by [31], which showed how tion is. Therefore, member performance plays a vital
leadership practices/behaviour that occur at the role in improving organizational performance. Lea-
individual level affect performance at the organi- ders must be the main factor in maximizing perfor-
zational level. In line with previous studies conduct- mance. By improving the performance of each
ed by [4] and [38], it takes a leader who can create a organization member, leaders can later improve the
conducive environment for employees to improve organization's performance. This is in line with
effectiveness in work. Furthermore, this study will research conducted by [22], which analyzed the
examine how the improved performance of an West Aceh Regency and found a positive relation-
organization can increase public trust. The study ship between leadership behaviour and the perfor-
also aims to fill gaps in the literature by exploring mance of social labour and transmigration organiza-
and testing the mediating relationship between tions.
leadership behaviour and organizational perfor- Based on research conducted by [11], the
mance. Given that studies on leadership in public following factors can improve members' perfor-
organizations are relatively rare, these studies will mance. They thus can positively impact an organi-
contribute to the literature on management and zation: member work interactions that suit the
public sector leadership. situation, synchronous communication, and good
Based on data from 282 questionnaires proces- coordination. High-quality collaboration within an
sed from the 62 Regional Working Organizations in organization is characterized by cohesion, defined as
Surabaya and using Partial Least Squares a collaborative spirit between departments, and
Nugroho: The Role of Leadership Function as A Mediating Variable Between Leadership Behaviour 81

results from leaders influencing members to keep exhibiting goal-directedness, and providing
them working together on an ongoing basis. Accord- performance feedback, employee development,
ing to [6], leaders managing a diverse workforce can and resources) positively correlates with orga-
effectively appreciate differences among members nizational performance.
and create a conducive and cooperative work envi-
ronment. This can contribute to the achievement of The Relationship Between Leadership
organizational goals. [31] demonstrates that feed- Behaviour and Leadership Function
back can improve performance because it leads to
the acquisition of technical, role, and evaluative This research is based on a behavioural appro-
information. The information obtained can promote ach to leadership, which assumes that leadership is
practical work and assist members in determining performed by exhibiting certain behaviours. Leader-
whether they have fulfilled performance standards ship behaviour can vary, meaning that one leader
or exhibited acceptable behaviour within the organi- will exhibit a different leadership behaviour than
zation. Feedback from leaders can also improve another. However, the leadership function can be
members' ability to control the work or responsibi- performed effectively if a leader carries out several
lities they are given. leadership behaviours.
Additionally, goal clarity is considered a factor Inter-unit collaboration in public organizations
that can improve an organization's performance [40] can positively affect leadership functions because
because the lack of a clear, common understanding collaboration between units can increase members’
of goals among members can result in poor perfor- motivation and cooperation [13]. The behaviour of
mance. This is because members may need more leaders who can positively manage diversity affects
direction or clarity regarding priorities, leading to the function of leadership because it can support
members exploring fewer ideas or collaborating less members to reduce discrimination and ensure equal
effectively. After all, in such a situation, members treatment to work together effectively [45]. In the
are focused on achieving different goals. Therefore, study conducted by [29], performance feedback
leaders must constantly explain and remind mem- provided by the leader was beneficial in determining
bers of the organization's goals. The research con- objectives and instructing members on their indi-
ducted by [12] stated that employee development is vidual goals. This reduced the decrease in job
also vital for organizations because human resourc- satisfaction associated with role ambiguity, thus
es must be continuously developed to improve improving performance effectiveness. Thus, feed-
members' professional quality and skills in carrying back has a positive relationship with the leadership
out tasks and functions under the demands of the function.
evolving environment. This notion is also in line Clarity of an organization's goals can reflect
with [43], which states that human resources are the definition of its vision and mission and how
valuable for the company to gain a competitive these goals are shared, achieved, and valued by its
advantage. Thus, when the leader develops the members. Ensuring goal-directedness is therefore
members' capabilities in carrying out their duties, predicted to influence the leadership function
each member can be more efficient and productive. positively; leaders need to communicate goals and
[30] showed that leaders who provide intangible objectives often to reduce the role ambiguity expe-
resources such as information and knowledge could rienced by members [40]. According to research
encourage learning for organization members. This conducted by [15], employee development has a
can increase each worker’s efficiency and effective- positive relationship with leadership functions
ness. because effective leadership can help individuals
Influential leaders will be able to resolve con- acquire knowledge and skills. Intangible resources
tingency issues regarding dynamic environmental such as information and knowledge can encourage
uncertainties. Therefore, leaders must apply leader- learning in the organization. Therefore, the pro-
ship behaviour well to improve member and organi- vision of resources has a positive relationship with
zation performance [14]. This is in line with con- the leadership function because leaders play an
tingency theory, which states that a good and essential role in providing the resources needed to
effective leader is a leader who understands the improve the skills and knowledge of members [30].
behaviour, nature, and situation of their organiza- The problems facing leaders vary and depend
tion’s members before applying a particular leader- on the situation [38]. Changing or uncertain situa-
ship style. Thus, an effective leader must possess tions influence certain personalities, and leaders
diagnostic skills in human behaviour [36]. Thus, a must be good at taking leadership behaviour actions
hypothesis was formulated as follows: that improve the effectiveness of leadership func-
H1: Leadership behaviour (shown by increasing tions. This is explained in contingency leadership
inter-unit collaboration, managing diversity, theory, which states that leadership characteristics
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significantly depend on contextual factors [7; 56]. H3: Leadership functions (shown by increasing
Thus, the following hypothesis has been formulated: cooperation, role clarity, and skills and know-
H2: Leadership behaviour (shown by increasing ledge) have a positive relationship with organi-
inter-unit collaboration, managing diversity, zational performance.
exhibiting goal-directedness, and providing
performance feedback, employee development, The Relationship of Leadership Behaviour
and resources) has a positive relationship with and Organizational Performance With
leadership functions (as shown by higher levels Leadership Function as a Mediating Variable
of member cooperation, role clarity, and skills
and knowledge). Over the past few years, several studies have
examined the mediating link between leadership
The Relationship Between Leadership and performance. However, the implications of
Function and Organizational Performance existing studies are still focused on specific leader-
ship styles, such as transformational leadership [9;
One variable that can determine the perfor- 10; 49], collaborative leadership [27], or knowledge
mance of an organization is the leader. The success leadership [58]. Instead, this study will focus on
of members in carrying out their duties and respon- leadership role behaviour that is not limited to
sibilities reflects a leader's success with a defined specific leadership styles. The results of this study
leadership function. Leadership function is the allow a comprehensive understanding of how
realization of ideal conditions related to the work specific leadership behaviour relates to leadership
environment, which are enforced by certain leader- functions and that impact organizational perfor-
ship behaviours and are essential for good organi- mance. In addition, the mediators identified in
zational performance. previous studies need to be more diverse. For
A study conducted by [33] found a positive example, some studies identify mediators that
relationship between leadership functions and orga- demonstrate the nature of work processes, such as
nizational performance in the Directorate General knowledge management [9] or collaborative pro-
of New Renewable Energy and Energy Conserva- cesses [27]. In contrast, others identify mediators
tion. Cooperation positively influences an organiza- that show individual-level results, such as job satis-
tion's performance because the knowledge to take faction [55]. The underlying logic of these mediators
strategic actions cannot be collected from just one is so diverse that it takes work to incorporate them
individual's thoughts [16]. Furthermore, role clarity into a single, concise model.
is considered to have positive results for the Leaders in each organization have a particular
performance and success of organizations [8]. This leadership style that will undoubtedly differ from
is because leaders who can convince and translate that of other organizations' leaders. These leader-
the organization's abstract mission into specific and ship styles result in different leadership behaviours
concrete objectives for individuals and work units from each leader. However, the behaviour of each
can clarify each member's role in the organization to leader directs them to perform management func-
ensure that they can work effectively. Skills and tions correctly, so different behaviours continue to
knowledge also positively correlate with the organi- carry out the management function. Leadership
zation's performance because they are closely behaviour that directs each leader to collaborate and
related to change. Hence, leaders set a direction that coordinate between sections, conduct feedback, and
must be followed in developing a vision for the manage the diversity within the organization will
future, and they care about the organization's ideas. make it easier for each leader to perform his or her
Therefore, it takes the skills and knowledge of leadership functions correctly. Leaders who
members who continue to develop [26]. demonstrate effective leadership behaviour will
When it comes to achieving a goal, the facilitate cooperation between individuals in the
influence of leadership is fundamental. Therefore, organization, clarify each individual's role, and
the success or failure of an organization to achieve improve the capabilities and knowledge of individu-
its specified objectives is closely related to the als. The study found that leadership is needed to
effectiveness of the leadership functions that create a climate conducive to innovation and emplo-
operate within the organization. This can be yee creativity [4; 34; 35]. Later, [42] and [56] showed
attributed to the contingency theory that states that that leaders significantly impact how their followers
successful leadership depends on how a leader achieve goals. [42] found that leader behaviour sup-
responds in his or her leadership function to the ports constructive problem-solving and increases
demands of the situation [21]. Thus, the hypothesis the self-efficacy of followers, which can later
that has been formulated is as follows: encourage innovative organizational performance.
Nugroho: The Role of Leadership Function as A Mediating Variable Between Leadership Behaviour 83

Improving a leader's efforts to carry out his used because there were no specific criteria for
leadership functions correctly due to good leader- sampling in this study. Thus, it means that all
ship behaviour will help the organization achieve population members were used as research sam-
higher performance [10]. Leadership functions play ples. Even though we know the total number of
an essential role in connecting leadership behaviour Local Government Organizations in Surabaya was
and organizational performance. In other words, 61, we faced the challenge of precisely determining
generic functionality results from certain leadership the total number of potential respondents in our
behaviours, which ultimately lead to better organi- target population. To ensure the likelihood of
zational performance. [31], in his research, found obtaining a comprehensive response and enhance
that how leadership practices are implemented at the generalizability of the findings, we decided to
the individual level can ultimately affect perfor- distribute the questionnaires to as many as possible
mance at United States federal agencies. The [20]. From a total of 1,500 paper-and-pen question-
results showed that well-conducted leadership naires that were distributed, the number of return-
behaviour, resulting in practical leadership func- ed questionnaires was equal to 330, and then a total
tions, positively affects an organization's perfor- of 282 questionnaires could be further processed.
mance. In research conducted by [14], well-function- Ethics approval from the committee was optional for
ing leadership was demonstrated to help focus this study because all of the respondents provided
people-centred approaches and tasks in a specific written informed consent before enrolment and
direction for positive change, allowing organizations agreed to answer all of the questions in the ques-
to avoid the risk of individual leadership orientation tionnaire. We also provided a formal permission
and strengthening the status quo. letter to each organization before distributing the
Similarly, based on contingency theory, a questionnaires.
leader needs to adjust behaviour based on a rational The independent variables in this study are
understanding of the situation and assume an leadership behaviour and leadership function, while
appropriate leadership style [7]. Thus, there is no the dependent variable is organization perfor-
better or worse leadership style, and there is more mance. Leadership behaviour is an inherent ability
than one approach to leadership. Instead, the right and has many influencing elements, both internal
approach depends on the situation, changing how and external [50]. The elements of leadership beha-
the leader behaves. Thus, the following hypothesis viour include ensuring goal direction, providing
was formulated: performance feedback, maintaining cohesive diver-
H4: The positive relationship between leadership sity within the organization, supporting employee
behaviour and organizational performance is development, promoting collaboration between
mediated by leadership functions units, and providing resources [29; 31]. The indica-
tors used to measure leadership behaviour were
RESEARCH METHOD adopted from [31], which consists of twelve state-
ments.
This study uses a quantitative research appro- Next, the leadership function of a leader is to
ach with explanatory research methods. Respon- guide members of their organization to achieve the
dents in this study were civil apparatus staff at the goals set collectively [30]. There are some general
Regional Working Organization of Surabaya. The functions that leaders are expected to carry out.
researchers chose this population because of the These functions are to increase cooperation, provide
declining public trust towards the public sector and role clarification, and improve skills [31]. The author
because the study aimed to determine the perfor- has adopted the leadership function indicators from
mance of staff and leaders of regional organizations. [31].
With good performance from staff and leaders, Lastly, organizational performance consists of
organizational performance will increase. This can the input, output, benefit, and impact that has been
provide perceptions of the variables studied, such as achieved by the organization within a certain period
leadership behaviour, organizational performance, [59]. An organization’s performance can be assessed
and leadership function. Moreover, as stated by [1], by evaluating the work carried out by each member
corruption cases in Indonesia are primarily found in of the organization to achieve the goals that have
Government circles; the data showed that corrup- been previously set [51]. To measure organizational
tion cases in Indonesia tended to increase from 2015 performance, the authors adopted indicators from
to 2020 [1]. The phenomenon of corruption causes a [31] research, which were selected from a collection
decrease in the level of public trust in the perfor- of questions in the Federal Employee Viewpoint
mance of the Indonesian government [1]. Survey (FEVS). Organizational performance
We distributed the questionnaires in total to 61 indicators consist of two questions. The first ques-
Local Government Organizations in Surabaya. The tion is related to the level of work quality of the work
sampling technique used in this study is a satura- unit, and the second is related to the overall
tion sampling technique. Saturated sampling was organizational performance assessment. Although
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these two items are self-rated measures, measuring reliability test was carried out on all the variables
organizational performance in this way has been used in this study, which showed that all variables
widely used in many studies on organizational have a composite reliability value > 0.6 (composite
performance and is considered effective [54]. reliability and Cronbach’s alpha). These results
All items on the questionnaire are measured illustrate that all variables used were feasible and
using the interval-measurement Likert scale, start- reliable for this research process.
ing from point 1 (strongly disagree) to point 5 Furthermore, the outer loading value can be
(strongly agree). A 5-point Likert scale is used in this used to measure and determine whether each esti-
study because it can produce results with strong mated indicator validly measures the dimensions
reliability and a high validity index [44]. This study studied. An indicator is said to meet the validity
has also used control variables in the form of gender, requirements if it has an outer loading value > 0.5,
age, and education. The data analysis method used which means it is considered good [7]. Lastly, Table
is the WarpPLS version 7.0 software PLS. 3 shows that the model in this study was declared
fit. These results indicate that the model built in this
RESULTS AND DISCUSSION study is feasible for the analysis process to be carried
out.
Descriptive & Statistical Results
Hypothesis Test Results and Discussion
In total, 1,500 questionnaires were distributed,
but only 282 questionnaires could be further Hypothesis testing in this study was conducted
processed. by testing the direct and indirect relationship hypo-
theses. The direct relationship hypothesis test aim-
Table 1. Respondent’s Demographic Data ed to determine the relationship between leadership
Frequency
behaviour and organizational performance, the
Sub Classification relationship between leadership behaviour and
Absolute Percentage
Gender Male 128 45,4 leadership function, and the relationship between
Female 154 54,6 leadership function and organizational perfor-
Total 282 100 mance.
Age 17 – 24 42 14,9
25 – 34 105 37,2 Table 2. Loading Factor, AVE, Reliability
35 – 49 109 38,7
Indicator Outer Loading P value Result
50 – 64 26 9,2
Value
Total 282 100
Last education High school 58 20,6 Leadership Behavior (AVE= 0.535, Composite Reliability
Diploma 54 19,1 = 0.931, Cronbach Alpha= 0.918)
Bachelor 156 55,3 X1 0.786 <0.001 Valid
Master 14 5 X2 0.655 <0.001 Valid
Total 282 100 X3 0.603 <0.001 Valid
X4 0.637 <0.001 Valid
Source: Data (2021)
X5 0.786 <0.001 Valid
X6 0.883 <0.001 Valid
Before testing the hypothesis, researchers also X7 0.883 <0.001 Valid
test the relationship between the demographic and X8 0.657 <0.001 Valid
dependent variables to test the control variables X9 0.663 <0.001 Valid
used in this study. This test is essential due to the X10 0.670 <0.001 Valid
weakness of the survey method, as revealed by [47]. X11 0.883 <0.001 Valid
To overcome this problem, they suggest that resear- X12 0.569 <0.001 Valid
chers need to do additional tests separately on the Organizational Performance (AVE= 0.770, Composite
Reliability = 0.870, Cronbach Alpha= 0.702)
demographic variable on the dependent variable.
Y1 0.878 <0.001 Valid
Based on the results of the analysis, the chi- Y2 0.878 <0.001 Valid
square test (df = 7; n = 282) did not show a signi- Leadership Function (AVE= 0.537, Composite Reliability
ficant difference between organizational perfor- = 0.871, Cronbach Alpha= 0.821)
mance related to gender (Pearson Chi-Square = M1 0.870 <0.001 Valid
13.408; p = 0.63 > 0.05); age (one-way ANOVA; F = M2 0.604 <0.001 Valid
2.260; p = 0.082 > 0.05); and last education (one-way M3 0.596 <0.001 Valid
ANOVA; F = 1.009; p = 0.389 > 0.005). These results M4 0.653 <0.001 Valid
M5 0.747 <0.001 Valid
indicate that the influence of these characteristics
M6 0.870 <0.001 Valid
on each respondent can be ignored. Adjusted R-Square
According to the results of Table 2, the AVE Organizational Performance 0.421
value for all variables is > 0.5. Therefore, it can be Leadership Function 0.355
concluded that all variables are valid. After that, the Source: Data (2021)
Nugroho: The Role of Leadership Function as A Mediating Variable Between Leadership Behaviour 85

Table 3. Fit Model organization can run effectively. Leadership beha-


Tenenhaus GoF =0.490, small >= 0.1, viour in providing performance feedback also proved
medium >= 0.25, large >= to be an important dimension. Staff considered the
0.36 technical, role, and evaluative information provided
Sympson's paradox ratio =1.000, accepted if >= 0.7, by the leader to have an essential role in improving
(SPR) ideal = 1 organizational performance because constructive
R-squared contribution ratio =1.000, accepted if >= 0.9, feedback from the leader could improve staff per-
(RSCR) ideal = 1 formance in the future.
Statistical suppression ratio =1.000, accepted if >= 0.7 Furthermore, the staff reported that having a
(SSR)
leader who always explained and reminded them of
Nonlinear bivariate =1.000, accepted if >= 0.7
causality direction ratio the organization's goals could improve organizatio-
(NLBCDR) nal performance. The delivery of goal-directedness
Source: Data (2021) (clarity of roles) allows staff to focus so that they can
work effectively to achieve their goals. Leadership
Table 4. Hypothesis Tests Results behaviour in employee development can improve
the professional qualifications and skills of the staff
Direct Relationship in carrying out their duties to improve organizatio-
Path
Relationship P-Values nal performance. The existence of resources (re-
Coefficient
source provision) such as information and know-
LB → OP 0.428 <0.001
LB → LF 0.598 <0.001 ledge, budget, people, and materials provided by the
LF → OP 0.286 <0.001 leader can encourage organizational performance
Indirect Relationship improvement. The results of this study indicate that
Path leaders who were assessed by state civil apparatus
Relationship P-Values
Coefficient staff in Regional Apparatus Organizations (OPD)
LB → LF → could carry out the values of leadership behaviour in
0.171 <0.001
OP their activities as a form of responsibility to the
Source: Data (2021) community and to address existing uncertainties.
The result of this research hypothesis test is sup-
Hypothesis testing used the t-statistic test in ported by previous research by [55], who found
the PLS analysis model with the help of the strong evidence that an organization's success
WarpPLS 7.0 software. Meanwhile, the indirect depends on the leadership of its manager. [22] show
relationship test was carried out using the indirect that a leader's good leadership behaviour will im-
effect estimation simultaneously with the triangle prove the effectiveness of staff-led performance so
PLS model. The result of hypothesis testing in this that it contributes positively to the organization's
study can be seen in Table 5 below. performance.
The results of statistical testing on the first The second hypothesis (H2) indicates that the
hypothesis show that leadership behaviour is posi- leadership behaviour variable is positively related to
tively related to the organization's performance (β= the leadership function (β= 0.598, p<0.001); thus,
0.422, p<0.001), so H1 is accepted. This study H2 is accepted. This indicates that a leader with
indicates that the staff of the state civil apparatus in good leadership behaviour can increase the effec-
the Regional Device Organization (OPD) in Sura- tiveness of his or her leadership function. The
baya feels that good leadership behaviour can im- results of this study prove that the leadership
prove the organization's performance. The results of function in collaboration can be improved by having
this study indicate that the leader's behaviour in a leader who encourages good cooperation between
encouraging inter-unit collaboration is good. The units. In addition, the leadership function of coope-
staff assess synchronous and positive interaction, ration can also be improved through leaders' ability
communication, and coordination between units in to manage various staff from different backgrounds
the organization to improve performance; therefore, (managing diversity) to work well together. Fur-
inter-unit collaboration is an essential dimension in thermore, the results of this study prove that the
leadership behaviour to improve organizational performance feedback provided by the leader
performance. In addition, this study also shows that regarding the role of staff in their organization can
leadership behaviour that can manage diversity is provide role clarity so that staff understand what is
an important dimension. Staff regarded managing expected. The leadership function of role clarity can
diversity as effective in improving performance also be improved by having a leader who constantly
because the backgrounds of staff can vary in an reminds the staff of the organization's goals (goal-
organization; therefore, diversity must be managed directedness) because, with clear goals, the staff can
appropriately so there is no mismatch, and the understand their role in an organization. This
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research also proves that having a leader who encourage different leadership behaviours to keep
provides a place to hone staff’s knowledge and skills them running correctly. This study shows that
(employee development) and provides resources leadership behaviour has a vital role in improving
(resource provision) will increase the skills and the performance of an organization, regardless of
knowledge of staff. the leadership function as a mediating variable. A
The contingency theory proposed by [52] can good leader will ensure that the chosen leadership
also help explain how leadership behaviour can behaviour allows for adequately carrying out mana-
improve leadership function. The theory states that gement functions. This will later improve organi-
to achieve organizational goals, various manage- zational performance because, with increased
ment techniques are needed in different situations leadership behaviour, it will become easier for each
or environments. Organizations that are dealing leader to help their organizations achieve higher
with various problems and, depending on changing performance. Therefore, this study's results prove
situations, need leaders who can take effective that a leadership function as a mediating variable
leadership behaviour actions that can increase the on the relationship between leadership behaviour
effectiveness of the leadership function. The find- and organizational performance can produce a
ings in this study are similar to previous studies, positive relationship.
including research conducted by [31], which explain- The contingency theory proposed by [18] states
ed that the better the leadership behaviour applied that organizational management can run well and
by a leader, the more influential the function of smoothly if organizational leaders can pay atten-
leadership in the organization would be. [3] obser- tion, analyze, and solve situations the organization
ved a significant association between various leader- faces. The contingency theory proposed by [50]
ship roles that produce effectiveness in leadership states that to achieve organizational goals, different
functions. [41] found that certain leadership behaviours management techniques are needed in different
will improve certain leadership functions; for situations or environments. Therefore, the chosen
instance, leaders with a humorous nature will leadership behaviour leads to the leadership func-
improve the function of leadership by fostering inno- tion needed in an organization so that performance
vative behaviour in staff. increases. The findings in this study are similar to
The statistical test results on the third hypo- previous studies, including [26], which showed that
thesis demonstrate that the leadership function is for an organization to run, leadership as construc-
positively related to the organization's performance tion must perform a specific system of functions. In
(β= 0.286, p<0.001), so H3 is accepted. The results addition, [48] found results that support the use of
indicate that the state civil apparatus staff felt that the leadership function model to understand
the practical function of leadership in the Regional leadership behaviour in teams and train leaders to
Working Organization of Surabaya could improve increase the effectiveness of teamwork. [31] also
the organization's performance. The findings of this found that the relationship between leadership
study are similar to previous studies [31], which behaviour and organizational performance increas-
identified a positive relationship between leader- ed with the leadership function as a mediating
ship functions and organizational performance. [33] variable.
also obtained the same research results, namely the
positive relationship between the function of leader- CONCLUSION
ship and the organization's performance. The result
states that the better a leader carries out his or her The lack of oversight in the governance process
role and function, the higher the employee's moti- has fuelled an increase in the misappropriation of
vation, ultimately improving the employee's perfor- public resources. An accountable and trusted local
mance. Furthermore, [2] illustrated the demands of government provides hope for the community.
leadership when staff face complex challenges and Therefore, it is necessary to make efforts to improve
conflicts; therefore, with the function of a leader, the performance of each government apparatus to
staff will be better able to work effectively, resulting restore public trust. Indicators of achieving organi-
in better performance. Finally, [32] states that lea- zational performance can be shown by the beha-
ders who strategically distribute certain leadership viour of the leadership in an organization. In
functions to staff and lead effectively will improve previous studies, leadership behaviour has been
the organization's performance. shown to result in an increase in organizational
The results of statistical testing on the fourth performance through the mediating function of
hypothesis indicate that the leadership function leadership in public organizations in the United
partially mediates the relationship between leader- States.
ship behaviour and organizational performance (β= This study took the first step in determining
0.171, p<0.001), so H4 is accepted. In addition, this the dimensions to directly identify the relationship
study found that the management function can between leadership behaviour and organizational
Nugroho: The Role of Leadership Function as A Mediating Variable Between Leadership Behaviour 87

performance with the role of the leadership function inspiring and motivating their teams, providing
as a mediation carried out in the Regional Working clear direction, fostering a positive work environ-
Organization of Surabaya. This study classifies ment, and promoting open communication [46; 28].
leadership behaviour as having six dimensions: Meanwhile, for the human resources management
inter-unit collaboration, managing diversity, perfor- team, the findings suggest that organizations
mance feedback, goal-directedness, employee deve- should prioritize leadership development programs
lopment, and resource provision. Leadership con- that focus on technical skills and growing desired
sists of three dimensions: cooperation, role clarity, leadership behaviours. Lastly, for employees and
and skills and knowledge. This study asks whether team members, the research findings indicate that
the function of leadership as a mediating variable employees can be encouraged to provide feedback on
has a role in the relationship between leadership leadership behaviour and contribute to developing a
behaviour and the performance of public sector positive work environment.
organizations in the city of Surabaya.
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