Political Skill and Transactional Leadership on Employee Performance: The Mediating Effect of Organizational Work Culture

Purpose – Previous research has examined political skills and transactional leadership in examining predictors and determinants of employee performance. This study was made necessary by the lack of research on organizational work culture and mediation in the holding industry. This study examines differences in employee performance due to political skills and transactional leadership and examines organizational work culture as a mediating factor. Design/methodology/approach – This study used census sampling techniques. Collect data using questionnaires and analyze research model hypotheses using Confirmatory Factor Analysis and Structural Equation Modeling with SmartPLS. Findings – The data analysis results show that political skills and transactional leadership are not positively related to employee performance and organizational work culture. Organizational work culture also fails to be a mediator, and only the impact of organizational work culture on employee performance is positive and significant. Practical implications – Organizations must do everything possible to ensure an improved adaptable, collaborative, flexible, and team-oriented work culture within the organization, as this is essential to improving performance by providing motivation, embracing innovative ideas, responding to employee complaints, and enabling the organization to survive and thrive. Originality/value – The study provides insights into how and to what extent political skills and transactional leadership variables affect employee performance. This study complements the existing literature and explores the mediating role of organizational work culture. Executives and policymakers can use the study's findings to improve organizational work culture in the corporate holding industry. The study opens up possibilities for future research.