DOES JOB SATISFACTION PLAY A MEDIATOR ROLE FROM TRANSFORMATIONAL LEADERSHIP AND ORGANIZATIONAL CULTURE TO ORGANIZATIONAL CITIZENSHIP BEHAVIOR

Luthfi Aulia Safari1

M Havidz Aima2

Ikramina Larasati Hazrati Havidz3

1,2,3 Universitas Mercu Buana, Indonesia

*e-mail: [email protected]1, [email protected]2, [email protected]3

*Correspondence: [email protected]

Submitted: June 2022,       Revised: July 2022,       Accepted: July 2022

Abstract. This study aims to analyze the effect of transformational leadership and organizational culture on organizational citizenship behavior through job satisfaction as a mediating variable. Employees of bank employees belonging to KBMI 4 is the population of this study, namely Mandiri bank, BCA, BRI, and BNI. Structural Equation Model-Partial Least Square (SEM-PLS) is used in this research. The results found that Transformational Leadership and Organizational Culture has a positive and significant effect on Job Satisfaction, Transformational Leadership had no effect on Organizational Citizenship Behavior, Organizational Culture and Job Satisfaction has a positive and significant effect on Organizational Citizenship Behavior, Transformational Leadership, and Organizational Culture simultaneously effect on Job Satisfaction, Transformational Leadership and Organizational Culture simultaneously effect on Organizational Citizenship Behavior, Job Satisfaction did not mediate the influence of Transformational Leadership and Organizational Culture on Organizational Citizenship Behavior.

Keywords:  Transformational Leadership, Organizational Culture, Job Satisfaction, Organizational Citizenship Behavior

INTRODUCTION

Financial Service Authority - Government Agency (OJK) changed the classification or grouping of the banking industry to Bank Group Based on Core Capital (KBMI) previously known as Commercial Bank for Business Activities (BOOK), as stated in regulation No.12/POJK.03/2021 (Christiani, 2021). Based on this regulation, there are only 4 (four) banks that are included in the highest category, namely KBMI 4 with a core capital of more than Rp 70.000.000.000.000,- (seventy trillion rupiah), the four banks are Mandiri bank,BCA, BRI, also BNI (Nasution et al., 2020).

Financial Service Authority - Government Agency (OJK) issue regulations on commercial banks based on the spirit and purpose so that the banking industry in Indonesia can be more competitive, adaptive and contributing to the economy in Indonesia, human resources are very influential for the company to achieve these goals. Human resources or employees are expected to be able to help each other in doing work together, willing to contribute more to the company and not committing fraud that can violate banking norms and regulations (Kharisma, 2020).

 In Indonesia, almost all financial institutions such as banks have experienced fraud. Fraud can come from external parties or even from the company's own internal parties. Survey conducted by Association of Certified Fraud Examiners (ACFE) in 2019 showed that the financial and banking sectors ranked the highest in the sector that was most disadvantaged by fraud (Murdock, 2018).

Association of Certified Fraud Examiners 2019 shows the report that the industrial sector that is most disadvantaged due to fraud is the financial and banking industry as much as 41.4% (Chantia et al., 2021).

Fraud reports received by Financial Service Authority - Government Agency in the first quarter until the third quarter is shown in table  1:

Table 1. Fraud Report

     Source : OJK Quarterly Report

Based on table 1 in the first quarter 2021 OJK received 15 reports of irregularities in banking regulations from 10 bank offices, in the second quarter 2021 OJK received 12 reports of irregularities in banking regulations from 6 bank offices and in the third quarter 2021 OJK received 4 reports of irregularities in banking regulations from 2 bank offices (Pratiwi & Masdupi, 2021). The total number of reports received by OJK in the first quarter to the third quarter was 31 cases of irregularities in banking regulations from 18 bank offices. The total accumulation of reports received by OJK from 2014 to the third quarter was 499 cases involving 255 bank offices (Ibrahim, 2016).

The high number of fraud cases in the banking industry shows that the organizational citizenship behavior is still low, because there are still many employees who do not obey or comply with the norms in banking, this contradicts one of the OCB dimensions, namely conscientiousness (according to the norm).

Pre-survey shows there are three variables that can affect OCB, namely, transformational leadership, organizational culture, and job satisfaction (William & Riyanto, 2021).

(Judge & Robbins, 2017) argue that Organizational Citizenship Behavior is discretionary behavior or freedom in making their own decisions that are not included in the job requirements, but can contribute to the workplace environment. Organizations will be successful if their employees are willing to contribute more than their work. According to (Kusumajati, 2014) There are five different characteristics of organizational citizenship behavior, namely Altruism, Courtesy, Civic Virtue, Sportsmanship, and Conscientiousness.

According to (Robbins, 2014) Transformational leadership is a supervisor  who can inspire their followers, and act as a role model and intellectually develop or guide their followers and than can develop their potential. Transformational leadership will be effective if their followers can see firsthand the positive impact, from their work by direct interaction with customers or other beneficiaries. According to (Hall et al., 2002) There are four transformational leadership styles, Idealized influence, Inspirational motivation, Intellectual stimulation, Individual consideration.

According to (Judge & Robbins, 2017) Organizational culture is a concept, values, and work style that is applied by every member of the organization, and can influence the way members of the organization behave, which can be a differentiator from other organizations. in a strong organizational culture, the core values of an organization are upheld by all employees. The more employees in the organization who accept the organization's core values, the stronger the organizational culture will be, and can have a major influence on employee behavior. According to (Judge & Robbins, 2017), organizational culture has seven characteristics, Innovation and risk-taking, People Orientation, People Orientation, Outcome Orientation, Team Orientation, Attention to detail, Stability, Aggressiveness.

According to (Judge & Robbins, 2017) Job satisfaction refers to an employee general behavior towards his job, An employee will have a positive attitude towards his job if he has high job satisfaction and an employee will tend to have a negative attitude towards his job if he has low job satisfaction. According to (Judge & Robbins, 2017) job satisfaction has five characteristics, namely, The work itself, Co-workers, Pay, Supervision, and Promotion opportunities.

MATERIALS AND METHODS

Quantitative research using primary data in the form of surveys is used for this research. The population in this study are bank employees who are categorized in Bank Group Based on Core Capital (KBMI) 4 as stated in regulation No.12/POJK.03/2021 by OJK, with an unknown population.

Nonprobability sampling used in this research with sampling technique convenience sampling or accidental sampling. According to (Hendayana, 2020) total of samples in the study is at least five times of total indicators. Due to the unknown population in this study, the number of samples is 42 (indicators total) multiplied 5, so the number of samples is 210 respondents is sufficient to represent the population, with assuming proportion, 52 employees of BRI, 53 employees of BCA, 53 employees of Mandiri, and 52 employees of BNI.

Smart Partial Least Square (PLS) is used in this study to analyze data. This multivariant statistical technique is useful for solving multiple regression when the data has quite specific problems, such as a small number of samples, missing data or multicollinearity (Wati, 2017).

RESULTS AND DISCUSSION

Outer Model

a)      Convergent Validity

Based on the results of dependen and independent variabels , can be concluded that the loading factor value of all variables after being modified more than 0.6 so it can be concluded that all variables used in this study are valid. Evaluation of convergent validity can also be seen from the magnitude of the Average variance extracted (AVE) value.

Table 2. AVE (Average Varian Extracted)

            Source: Data Processing Results Using SmartPLS (2022)

Based on table 2, shown that the AVE value of each variable is > 0.5,  its mean  that all the variables used in this study are valid.

b)      Discriminant validity

Discriminant validity is seen based on the value of cross loadings measurements with constructs, each cross loading value of the construct must be bigger than the loading value with other constructs, its mean the model has good discrimant validity.

Table 3.Cross Loading Each Variable

   Source: Data Processing Results Using SmartPLS (2022)

In table 3 shown that all dimensions have a cross loading value of the construct that is bigger than the cross loading value of other constructs (valid) , and its mean the variable constructs of all variable used in this study have good discriminant validity.

c)       Reliability

The reliability of a construct showed by composite reliability value and the Cronbach's alpha value. If construct has composite reliability value and Cronbach's alpha is above 0.70, its mean means that the construct has good reliability.

Table 4.Cronbach's Alpha and Composite Reliability

      Source: Data Processing Results Using SmartPLS (2022)

Table 4 shown that composite reliability and Cronbach's alpha of each variable is > from 0.70, its mean that the research model used in this study has met the reliability criteria.

Inner Model

The evaluation of the Inner Model or hypothesis testing in this study was carried out in several steps,  by evaluating the value of the path coefficient, indirect effect, evaluating R2 value, measuring effect size f2, validate the overall structural model with Goodness of Fit Index (GoF), and predictive relevance (Q2) test.

The R2 of Job Satisfaction is 0.583 and R2 of Organizational Citizenship Behavior is 0.670.

F value in this study is 97 for the job satisfaction variable and 223 for organizational citizenship behavior variables, F Table value at alpha 0.05 is 2.65. its means FHitung > FTabel, so H6 dan H7 accepted.

Result of Goodness of Fit Index (GoF) value is 0,589. (Siswoyo et al., 2020) argues that, Gof value 0,1 is small, Gof Value 0,25 is moderate and GoF value 0.36 is large. The results show that the overall performance of the measurement model (outer model) and the structural model (inner model) in this study is good, with a GoF value greater than 0.36.

The predictive relevance value (Q2) is 0,862. In the model of this study, the correlation prediction value (Q2) of endogenous latent variables is > 0, so latent variables are called explanatory variables that can predict endogenous variables or have good correlation predictors.

Image 1.Inner Model Test

Source: Data Processing Results Using SmartPLS (2022)

Table 5.Partial Effect of Independent Variables on Dependent Variables

Source: Data Processing Results Using SmartPLS (2022)

Table 6. Indirect Effect of Independent Variables on Dependent Variables

 Source: Data Processing Results Using SmartPLS (2022)

Table 5 and table 6 above, shown that the statistical calculations obtained for the structural model with the following hypothesis:

1. Hypothesis 1

The path coefficient value is 0,513 and THitung (5,938) > TTabel (1,96) with PValue 0,000, and  H1 accepted (PValue<0,05), H0 rejected, its means that Transformational Leadership (X1) has a positive and significant relation on Job Satisfaction (Y). Based on observations at KBMI 4 banks, real actions felt by KBMI 4 employees is the attitude of their leaders in listening to their opinions and constraints, especially obstacles in achieving branch targets, which will affect the company's performance. Their leaders are active in giving directions and willing to take the time to help them who have difficulty in achieving company targets, such as doing product reviews, and doing roleplay to every employee. The ability of leaders to provide assistance to their employee will increase employee satisfaction at work. Findings of this study are in accordance with the findings of research conducted by (Qarismail & Prayekti, 2020) and findings of research conducted by (Utami & Aima, 2021), they argues that transformational leadership affects employee job satisfaction.

2. Hypothesis 2

The path coefficient value is 0,315 and THitung (3,580) > TTabel (1,96) with PValue 0,000, and H2 accepted (PValue<0,05) dan H0 rejected, its mean that Organizational Culture (X2) has a positive and significant relation on Job Satisfaction (Y). Based on observations at KBMI 4 banks the concepts, values and work styles applied by the company to serve as guidelines for each employee have increased the cohesiveness of the team. Bank KBMI 4 employees also feel that applying organizational culture can increase team engagement, it will establish a good relationship between co-workers. Findings of this study are in accordance with the findings of research conducted by (Suparta & Ardana, 2019)and findings of research conducted by (Abbas et al., 2020) they argues that organizational culture affects job satisfaction.

3.    Hypothesis 3

The path coefficient value is 0,027 and THitung (0,354) < TTabel (1,96) with PValue 0,724, and H3 rejected (PValue>0,05) dan H0 accepted, its means that Transformational Leadership (X1) has no significant relation on Organizational Citizenship Behavior (Z). The results of this study underlie that voluntary behavior or organizational citizenship behavior in KBMI 4 bank employees is not based on leadership or from the attitude of the leader, transformational leadership is not strong enough to encourage employees to achieve maximum organizational citizenship behavior. Findings of this study are in accordance with the findings of research conducted by (Aldrin & Yunanto, 2019) and findings of research conducted by (Mahnefid, 2019) they argues that transformational leadership has no significant relation on organizational citizenship behavior.

4.    Hypothesis 4

The path coefficient value is 0,697 and THitung (11,192) > TTabel (1,96) with PValue 0,000, and H4 accepted (PValue<0,05) and H0 rejected, its means that Organizational Culture (X2) has a positive and significant relation on Organizational Citizenship Behavior (Z). Based on observations at the bank KBMI 4 organizational culture values that are applied, make KBMI 4 bank employees continue to innovate and be enthusiastic in facing changes especially in today's digital era, many technology-based financial companies have emerged, namely fintech (financial technology) as a competitor to the banking industry. Organizational culture will encourage employees to be innovative, take risks and encourage employees to seek the newest information for the company's development where this is voluntary (not mandatory) but employees are expected to be involved in organizational citizenship behavior, although its not clearly stated in their job description. Findings of this study are in accordance with the findings of research conducted by Aziz (2020) and findings of research conducted by Rivai (2021) they argues that organizational culture has an effect on improving organizational citizenship behavior.

5.    Hypothesis 5

The path coefficient value is 0,143 and THitung (1,972) > TTabel (1,96) with PValue 0,049, and H5 accepted (PValue<0,05) and H0 rejected, so it can be concluded that Job Satisfaction (Y) has a positive and significant relation on Organizational Citizenship Behavior (Z). The behavior of helping each other in the work environment of the KBMI 4 bank will make employees always comply with the rules and norms that have been set by the company, This will increase employee job satisfaction because they feel safe at work. Employees who are satisfied with their jobs will benefit the organization and can positively influence employee attitudes in an organization, the employee will contribute more to the company. Findings of this study are consistent with those conducted by (Zami et al., 2019) and findings of research conducted by (Sholikhah & Frianto, 2022) they argues that job satisfaction affects organizational citizenship behavior.

6. Hypothesis 6

The R2  values of transformational leadership and organizational culture is 0.583 with FStatistic  values 97 and FTabel values at alpha 0,05 is 2,65. Its means FHitung (97) > FTabel (2,65), H6 accepted and H0 rejected, the conclusion of this research is that Transformational Leadership (X1) and Organizational Culture (X2) simultaneously have a positive and significant relation on Job Satisfaction (Y). the higher the level of transformational leadership and organizational culture in a company, the higher the level of job satisfaction felt by bank employees KBMI 4. Findings of this study are in accordance with the findings of research conducted by (Ayatullah, 2020) and findings of research conducted by (Algadri et al., 2021), they argues that transformational leadership and organizational culture simultaneously have a positive and significant relation on job satisfaction.

7.    Hypothesis 7

The R2  values of transformational leadership, organizational culture, and job satisfaction is 0,670 with FStatistic values 223 and FTabel values at alpha 0,05 is 2,65. Its means FHitung (223) > FTabel (2,65), and H7 accepted dan H0 rejected, the conclusion of this research is Transformational Leadership (X1), Organizational Culture (X2) and Job Satisfaction (Y) simultaneously have a positive significant relation on OCB (Z). Findings of this study are in accordance with the findings of research conducted by (Algadri et al., 2021) which states that organizational culture, transformational leadership, job satisfaction simultaneously positive significant effect on  OCB

Table 8 Indirect Effect of Independent Variables on Dependent Variables

Source: Data Processing Results Using SmartPLS (2022)

From table 8 above, it can be seen the indirect effect each variable, it can be concluded:

8. Hypothesis 8

The path coefficient value is 0,073 and THitung (1,755) < TTabel (1,96) with PValue 0,080, it means H8 rejected (PValue >0,05) dan H0 accepted, its measn that Job Satisfaction (Y) has no significant relation in mediating Transformational Leadership (X1) on OCB (Z). Findings of this study are in accordance with the findings of research conducted by (Wu, 2018) and the findings of research conducted by (Arifiani et al., 2020) they argues that transformational leadership on OCB not mediated by job satisfaction.

9. Hypotehesis 9

The path coefficient value is 0,045 and THitung (1,806) < TTabel (1,96) with PValue 0,072, it means H9 rejected (PValue >0,05) dan H0 accepted, its measn that Job Satisfaction (Y) has no significant relation in mediating Organizational Culture (X1) on Organizational Citizenship Behavior (Z). Findings of this study are in accordance with the findings of research conducted by by (Diary et al., 2020) which states that organizational culture on OCB not mediated by job satisfaction.

CONCLUSIONS

Individual considerations are the most positive and significant transformational leadership factors on job satisfaction. Team-oriented is organizational culture factors have the strongest positive significant influence on job satisfaction. Transformational leadership has no significant relation on OCB. Innovation and risk taking are the biggest influences of corporate culture on OCB. Job satisfaction factor is that coworkers have the strongest positive and substantial impact on OCB. Transformational leadership and organizational culture coexist with job satisfaction. Transformational leadership, organizational culture and job satisfaction coexist with OCB. Transformational leadership not mediated by job satisfaction on OCB. Organizational culture not mediated by job satisfaction on OCB.

SUGGESTIONS

1. Management needs to improve Inspirational motivation behavior to leaders so that they can inspire their employees by generating enthusiasm and optimism and can raise their enthusiasm to be involved in following important things in the organization by providing motivational training to each employee, and doing evaluation in the form of an assessment sheet.
2. Management in this case needs to encourage employees to always be able to innovate and dare to take risks, so that employees participate in contributing their ideas for the progress and development of the company, this can be done by inviting them to be involved in identifying problems and how how to solve it.
3. Management must be able to ensure that each employee's relationship must be well established, in accordance with norms, and comply with company rules and policies, so that they can work comfortably without worrying about conflicts in the work environment,.
4. For further researchers needs to increase the number of respondents to bank employees belonging to the KBMI bank 4. The more number of respondents, the more accurate research results will be.

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