Vol. 5 No. 6 (2026): August 2026
Open Access
Peer Reviewed

The Effect of Transactional Leadership Style and Organisational Culture on the Performance of PDAM Employees in Luwu Regency

Authors

Abdal , Sukri , Muhamad Hadis Badewi

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Received: 2026-07-09
Accepted: 2026-07-15
Published: 2026-08-26

Abstract

This study aims to examine the effect of transactional leadership style and organizational culture on employee performance at the Regional Water Supply Company (PDAM) of Luwu Regency. The study was motivated by the limited empirical evidence concerning the combined influence of transactional leadership style and organizational culture on employee performance in regional public service organizations. Understanding these relationships is important because leadership practices and organizational culture are considered key factors in improving organizational effectiveness and the quality of public services. This study employed a quantitative approach using a survey method. The research involved all 95 employees of PDAM Luwu Regency through an exhaustive sampling technique. Primary data were collected using a structured questionnaire and analyzed using validity testing, reliability testing, partial hypothesis testing (t-test), and simultaneous hypothesis testing (F-test) with the assistance of SPSS software. The findings indicate that transactional leadership style has a positive and significant effect on employee performance. Organizational culture also has a positive and significant effect on employee performance. Furthermore, transactional leadership style and organizational culture simultaneously have a significant influence on employee performance. These findings suggest that strengthening leadership practices and fostering a supportive organizational culture can contribute to improving employee performance. The results of this study are expected to provide practical insights for PDAM management in developing leadership practices and organizational strategies that support sustainable employee performance improvement and better public service quality.

Keywords:

Transactional Leadership Style Organizational Culture Employee Performance

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Author Biographies

Abdal, Faculty of Economics and Business, Muhammadiyah University of Palopo

Author Origin : Indonesia

Sukri, Faculty of Economics and Business, Muhammadiyah University of Palopo

Author Origin : Indonesia

Muhamad Hadis Badewi, Universitas Muhammadiyah Palopo

Author Origin : Indonesia

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How to Cite

Abdal, A., Sukri, S., & Hadis Badewi, M. (2026). The Effect of Transactional Leadership Style and Organisational Culture on the Performance of PDAM Employees in Luwu Regency. Journal of Applied Business, Taxation and Economics Research, 5(6), 1041–1053. https://doi.org/10.54408/jabter.v5i6.648

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