Transformational Leadership and Employee Performance: Mediation of Organizational Citizenship Behavior

: This research aims to measure transformational leadership and employee performance mediated by organizational citizenship behavior. This research uses a quantitative approach, data was collected from 210 employees of small and medium enterprises. Data were analyzed using Smart PLS 3.2.9. The research results show that transformational leadership does not affect employee performance. Meanwhile, transformational leadership contributes positively to organizational citizenship behavior, and organizational citizenship behavior also shows a positive impact on employee performance. Lastly, organizational citizenship behavior is proven to mediate transformational leadership about employee performance. Limitations of this research that can be stated include using a self-assessment report which allows for high subjectivity when filling out the questionnaire. The research only focuses on small and medium export businesses, so the research results tend to be less generalizable.


Introduction
Small and medium businesses play an important role in the economic growth of a country.The contribution of small and medium enterprises is greatly felt by developing countries (Forth & Bryson, 2019).Especially the contribution shown by small and medium enterprises to gross domestic product (Okundaye, Fan, & Dwyer, 2019).However, small and medium enterprises have various internal obstacles such as the application of technology, managerial competence, conventional production methods, low financial literacy and weak administrative systems (Aristana, Arsawan, & Rustiarini, 2022; Riana, Rihayana, & Kumala Ratih, 2019).Meanwhile, external obstacles faced include the availability of raw materials, market tastes, marketing and business networks (Bonita, 2013;Muchlas, 2015;Wulandari, 2012).One of the first steps in overcoming the problems that occur, small and medium businesses can improve the performance of human resources.Improving human resource performance can be done without support from appropriate leadership (Sintaasih, Riana, & Aristana, 2020).Previous research recommends transformational leadership as leadership capable of encouraging human resource performance (Babić, Savović, & Domanović, 2014;Buil, Martínez, & Matute, 2019).Besides that, transformational leaders are able to realize work effectiveness (Guimaraes, Stride, & O'Reilly, 2014; Polychroniou, 2009).However, transformational leadership does not always show a positive impact.Prabowo, Noermijati, & Irawanto (2018); Wang, Law, Hackett, Wang, & Chen (2005) and Eliyana, Ma'arif, & Muzakki (2019) found that transformational leadership did not contribute to employee performance.Seeing the gap that occurs, this research recommends organizational citizenship behavior as a mediator.This cannot be separated from organizational citizenship behavior, which is explained as positive individual behavior that supports the organization, but is not formally specified (de Geus, Ingrams, Tummers, & Pandey, 2020; Gong, Greenwood, Hoyte, Ramkissoon, & He, 2018; D. W Organ, Podsakoff, & MacKenzie, 2006).This behavior can help leaders improve human resource performance, considering that organizational citizenship behavior is a strong and consistent predictor (Jiao, Richards, & Zhang, 2011;Thiruvenkadam & Durairaj, 2019).Organizational citizenship behavior is the basis for trust in the relationship between leaders and employees (Nohe & Hertel, 2017).In other words, transformational leadership efforts improve performance more effectively if employees demonstrate organizational citizenship behavior (Jiang, Zhao, & Ni, 2017;Khokhar & Zia-ur-Rehman, 2017).Based on this phenomenon, this research aims to analyze and explain the influence of transformational leadership on employee performance.Apart from that, research also uses organizational citizenship behavior as a mediator.So that later the findings of this research can expand employee performance as well as supporting literature.

Method
This research was carried out using a quantitative approach by collecting data using a questionnaire.The population of this research is small and medium export businesses in Bali, totaling 42 businesses.The business selection is carried out by several determining criteria.First registered with the Bali Province Industry and Trade Service, and still had business consistency when this research was conducted.The research sample was determined using saturated sampling so that the entire population was sampled.Meanwhile, research respondents used employees as respondents.The number of respondents was set at five employees in each business, so the total number of respondents was 210 employees.This amount is determined with several considerations.First, employees are used who have worked for more than 5 years.Second, the employee concerned is considered to have good behavior at work.Third, the employees involved are those who have received recommendations from the leadership.

Data analysis
Data was collected in two stages, first data was collected involving 30 respondents.This aims to test the validity and reliability of the data.An instrument is declared valid if it has a product-moment correlation coefficient (r) greater than 0.3 (r > 0.3).A construct is declared reliable if the Cronbach Alpha value is greater than 0.6 (CA > 0.6) (Sugiyono, 2017).Second, after the instrument is declared valid and reliable, data collection continues according to the target.The collected data was analyzed using Smart PLS version 3.2.9.SEM-PLS was used to test the research hypothesis.The characteristics of the respondents who contributed to this research are shown in Table 1.

Theoretical Review and Hypothesis Development Transformational leadership
Transformational leaders are leaders who can influence their followers by enhancing individual goals and helping them increase their self-confidence in the workplace (Burns, 1978).Transformational leadership has four important dimensions: ideal influence, inspirational motivation, intellectual stimulation

Organizational Citizenship Behavior
Early in the development of the concept of organizational citizenship behavior, Smith, Organ, & Near (1983) described organizational citizenship behavior as employee contributions above and beyond the formal job description.Organ (1988) states organizational citizenship behavior is extra behavior to help the organization.Organizational citizenship behavior is constructed that is not supported by formal rewards (Gong et al., 2018).These behaviors in aggregate, human relationships, contribute to organizational effectiveness (Ingrams, 2020; Dennis W Organ, 1997).Understanding is broadened where citizenship behavior becomes an important element in contributing to work (Jiang et al., 2017).Then (Khokhar & Ziaur-Rehman, 2017; D. W Organ, 1990; Rita, Randa Payangan, Rante, Tuhumena, & Erari, 2018) developed a five-factor model through deconstruction consisting of five dimensions, namely: Altruism is explained as prosocial behavior aimed at helping coworkers complete work.Conscientiousness can be obtained from the process of internalizing existing social norms and becomes a distinguishing characteristic.Courtesy is demonstrated by effective communication with co-workers so that co-workers feel respected and receive information related to unplanned changes.Sportsmanship is demonstrated by avoiding unsupportive behavior which is implemented by surviving in difficult situations.Civic virtue is demonstrated by actively participating in company management activities.

Employee Performance
Every organization has work standards, of course, these standards become a reference for employees in completing their tasks.Dharma (2018) defines performance as the output produced by employees within a certain time through the energy and skills they possess.Employee performance is also explained as a series of employee behaviors in contributing to achieving organizational goals (Karhapää, Savolainen, & Malkamäki, 2022; Turek, 2021; Wojtczuk-Turek, 2022).Sometimes employee performance becomes a benchmark in determining work performance, promotions, wage adjustments, rewards, punishments, and evaluations (Kalia & Bhardwaj, 2019; Sihombing, Astuti, Mussadieq, Hamied, & Rahardjo, 2018).Liu, Chen, & Yao (2011) stated that performance is a mandatory role determined by the organization, so employees must follow the requirements and provisions of the organization.Increasing employee performance is important to support an organization to excel from its competitors (Aftab, Sarwar, Amin, & Kiran, 2022).It is necessary to increase communication of organizational expectations so that there is a reference for improving employee performance (Khoreva & Wechtler, 2018).

Hypothesis Development
Previous research has conceptualized transformational leadership with employee behavior in organizations.This research specifically links transformational leadership with organizational citizenship behavior and employee performance.Riyadi, Pujiarti, & Nurchyati (2016); and (Masa'deh, Obeidat, & Tarhini, 2016) found that leadership significantly influences employee performance.Likewise, the findings of (Babić et al., 2014) reflect support for the results of this research, where transformational leaders are proven to help employees in carrying out their duties.This cannot be separated from transformational leaders displaying behavior such as respect, fairness, and consistency by moral and ethical standards (Thompson, Buch, Thompson, & Glasø, 2021).However, (Wang et al., 2005) and (Aristana et al., 2023) found that transformational leadership was not connected to employee performance.The ability of transformational leadership to inspire and stimulate employees does not show a direct impact on performance (Virgiawan, Riyanto, & Endri, 2021).Based on the description presented above, the first hypothesis is formulated as follows: H1: Transformational leadership has a positive effect on employee performance Organizational behavior is explained as understanding, predicting, and managing organizational people (S.-U.-R.Khan, Anjam, Abu Faiz, Khan, & Khan, 2020).Previous research found a positive relationship between transformational leadership and organizational citizenship behavior (Hackett, Wang, Chen, Cheng, & Farh, 2018; Huberta, Brasit, Taba, & Amar, 2017; Jiang et al., 2017).Transformational leadership practices help employees to work together, have respect for privacy, and be able to avoid disputes that arise when mistakes occur (Manoppo, 2020).Transformational leadership supports subordinates in increasing awareness at work (Jiao et al., 2011).The stimulation provided by leaders can increase the practice of organizational citizenship behavior (Gurmani et al., 2021), making them exceed their interests (Tuan, 2017).Based on the description presented above, the second hypothesis is formulated as follows: H2: Transformational leadership has a positive effect on organizational citizenship behavior Previous studies generally provide empirical evidence of the relationship between organizational citizenship behavior and employee performance (Huberta et al., 2017;Jiang et al., 2017;Organ et al., 2006).Therefore, organizational citizenship behavior results in employee responses to improve their performance (Khokhar & Zia-ur-Rehman, 2017).Organizations with employees who have high organizational citizenship behavior have higher performance (Basu, Pradhan, & Tewari, 2017).When the organization pays attention to the needs and concerns of subordinates, it increases their behavior in supporting the organization (Chiang & Hsieh, 2012).So employee work behavior is designed as an organizational image strategy, this aims to grow employee confidence.Employees who feel confident will increase their citizenship behavior and this will have an impact on the work results shown (Jiao et al., 2011;Tuan, 2017).Based on the description presented above, the third hypothesis is formulated as follows: H3: Organizational citizenship behavior has a positive effect on employee performance Based on empirical confirmation showing that transformational leadership has an impact on employee performance (Masa'deh et al. ).The results shown in the previous empirical course cannot be separated from the conscious behavior of employees, helping the organization to achieve its stated goals.However, before going to this stage, it is necessary to improve employee performance.Based on the description presented above, the third hypothesis is formulated as follows: H4: Organizational citizenship behavior acts as a mediator in the influence of transformational leadership on employee performance  Based on Table 2 and Table 3, it is known that all items have an outer loading value above 0.6.Apart from that, discriminant validity using the Fornell-Larcker Criterion shows the above values ranging from 0.758 -0.849 so that all construct items are declared valid.Furthermore, it is known that all constructs have Cronbach's alpha values in the range of 0.870 -0.922 and composite reliability in the range of 0.904 -0.934, so they are declared reliable.

Inner model measurements
After all outer model measurement criteria are met, the analysis continues with inner model measurements with several criteria.First, an examination of the feasibility of the research model of the relationship between exogenous and endogenous variables was carried out.The relationship between variables is categorized into three, strong (0.67), moderate (0.33), and weak (0.19) (Gentle, Härdle, & Mori, 2011; Hair et al., 2013).The results of the feasibility analysis model show (Table 4) that the R 2 of the two variables is smaller than 0.19 so it is categorized as weak.The average R 2 is 0.055, which means that 5.5 percent of the constructs are related and 94.5 percent are explained by other constructs that are not explained in the research model and are a consideration for future research.Second, in calculating Q-Square predictive relevance (Q 2 ), according to Stone (1974), the prediction model is stated to be stronger as its approaches 1.
Based on the calculations, the Q 2 value is 0.109, which means that the relationship between variables are 10.9 percent and 89.1 percent are explained by factors.error.Third, testing goodness of fit (GoF) aims to determine the suitability of the model with the observed values with the criteria of small (0.00 -0.24), medium (0.25 -0.37), and high (0.38 -1).
The calculation results show a GoF value of 0.187, which means the model has a small fit.Finally, the model fit criteria were checked by looking at the standardized root mean square residual (SRMR) value with a significance below 0.08.The analysis shows that the SRMR value is 0.061 so the model is suitable.

Hypothesis testing
Hypothesis testing is shown in Table 5 and Figure 2, decision-making is based on t statistics and p-value (t > 1.960 and p < 0.05) shows a significant effect.Based on Table 5, it can be seen that transformational leadership has no significant effect on employee performance with a path coefficient value of -0.045 and t = 0.429 < 1.96 and a p-value of 0.334, thus hypothesis 1 is not supported.This finding shows that leaders pay less attention to the potential of transformational leadership and it has not been exploited properly.So transformational leadership has not been able to encourage employee performance in small and medium export businesses in developing countries.This certainly conflicts with the ability of transformational leadership to encourage employee performance in small businesses in developed countries (Mahmood, Akhtar, Talat, Shuai, & Hyatt, 2019), and large-scale companies (Yue, Men, & Ferguson, 2019).These results are in line with research (Eliyana et al., 2019;Prabowo et al., 2018;Wang et al., 2005) which found that transformational leadership did not affect employee performance.As is known, transformational leadership can approach employees' personal needs (Afsar et al., 2014).This cannot be separated from its characteristics such as; idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration (S.Al-Husseini, El Beltagi, & Moizer, 2021; Noruzy, Dalfard, Azhdari, Nazari-Shirkouhi, & Rezazadeh, 2013).Furthermore, transformational leadership has a positive and significant effect on organizational citizenship behavior as seen from the path coefficient value of 0.293 and t = 5.258 < 1.96 and p-value 0.000, thus hypothesis 2 is supported.These results show that the better the practice of transformational leadership, the greater the organizational citizenship behavior shown by employees.These findings are in line with research (Hackett et al., 2018;Huberta et al., 2017;Jiang et al., 2017).Transformational leadership practices help employees collaborate, respect each other, and reduce disputes (Manoppo, 2020).In addition, transformational leadership increases employee awareness at work (Jiao et al., 2011).Through this awareness, it is a form of organizational citizenship behavior practice, so that employees work beyond their interests (Gurmani et al., 2021;Tuan, 2017).The final direct influence, organizational citizenship behavior has a positive and significant effect on employee performance as seen from the path coefficient value of 0.165 and t = 2.316 < 1.96 and p-value 0.010, thus hypothesis 3 is supported.This shows that increasing organizational citizenship behavior will increase employee performance.The findings are in line with previous research presented by (Huberta et   Meanwhile, the mediation effect is calculated using the Sobel Test with criteria greater than 1.96 (Z > 1.96) which is shown in Table 5.Based on the calculations carried out, it is known that the Z Value of 2.12386542 is greater than 1.96 so hypothesis 4 is supported.This research shows that transformational leadership has not been shown to contribute to improving employee performance.However, transformational leadership has an impact on increasing organizational citizenship behavior (Hackett et al., 2018;Huberta et al., 2017;Jiang et al., 2017).Likewise, organizational citizenship behavior contributes to improving employee performance (Jiang et al., 2017; Khokhar & Zia-ur-Rehman, 2017; D.W Organ et al., 2006).Thus, the existence of organizational citizenship behavior can accommodate transformational leadership practices that have not been effectively adopted in small and medium businesses.So the research results support previous findings put forward by (Chiang & Hsieh, 2012;Jiao et al., 2011; N. A. Khan, Khan, Soomro, & Khan, 2020; Rita et al., 2018), where organizational citizenship behavior is proven to be a mediator of the relationship between transformational leadership and performance.employees.

Conclusions and Recommendations
Based on the results of the analysis and discussion presented in the previous section, the research has several conclusions.First, transformational leadership does not affect employee performance.However, transformational leadership has been proven to increase organizational citizenship behavior.This illustrates that increasing transformational leadership practices does not have an impact on employee performance, but increases organizational citizenship behavior.Second, organizational citizenship behavior has a positive impact on employee performance.This shows that increasing organizational citizenship behavior can improve employee performance.Third, organizational citizenship behavior acts as a mediator in the relationship between transformational leadership and employee performance.Thus, increasing organizational citizenship behavior can overcome leadership obstacles in influencing employee performance.As a study, of course, this research still has various limitations that can be conveyed.First, this research design using a cross-sectional approach is very likely to eliminate causal correlation.So the situation becomes a gap for future research to design longitudinal designs.Second, this research was conducted on small and medium businesses in developing countries, especially Indonesia.Making the results of this research difficult to generalize.Third, collecting respondent data using self-assessment reports, this method has several weaknesses such as; high subjectivity when filling out the questionnaire.Fourth, this research measures transformational leadership and employee performance which is mediated by organizational citizenship behavior.A deeper reduction of the constructs used to adjust the measurements is required.

Figure 1
Figure1represents the conceptual framework of the research model.This research describes the influence of the independent variable transformational leadership on employee performance which is mediated by organizational citizenship behavior.