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Modernizing for performance: Do leadership, service quality, and remuneration drive employee performance in Indonesia’s tax administration?

Author

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  • Seno Aji

    (Sekolah Tinggi Ilmu Ekonomi Kusuma Negara)

Abstract

This study tests whether leadership (X1), service quality (X2), and remuneration (X3) are associated with employee performance (Y) in a modernized public-sector setting. Using a quantitative explanatory design, we surveyed all 103 employees of KPP Madya Jakarta Barat (Section Heads, Functional Tax Auditors, Account Representatives, and Operational Staff). Constructs were measured via structured questionnaires; item–total (corrected) validity and Hoyt reliability confirmed sound measurement (α Leadership = 0.89; Service Quality = 0.925; Remuneration = 0.876; Performance = 0.928). Assumption checks included normality (CR skew/kurtosis within ±2.58), residual autocorrelation (Durbin–Watson in the no-autocorrelation band), and visual inspection for heteroskedasticity (scatterplots). Pearson correlations and simple regressions indicated that Service Quality → Performance (β = 0.429; R² = 0.184; p

Suggested Citation

  • Seno Aji, 2024. "Modernizing for performance: Do leadership, service quality, and remuneration drive employee performance in Indonesia’s tax administration?," Journal of Economics and Business Letters, Privietlab Research Center, vol. 4(3), pages 40-48, June.
    • Handle: RePEc:prv:jeblpv:985
    DOI: 10.55942/jebl.v4i3.985
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