The role of disruption in the impact of multiple leadership styles on bank performance: evidence from Indonesia

  • 146 Views
  • 40 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

This study aims to explore the role of multiple leadership styles in bank performance, with disruption as a moderator in Indonesia. The study uses a probability sampling technique with random sampling types. The main data source was the distribution of questionnaires. 300 bank employees were targeted, and 450 data inputs were received upon completion of the survey. The data were processed using Structural Equation Modelling (SEM) with Partial Least Square Structural Software. The data analysis obtained a construct and discriminant validity value of 0.7 and achieved an R-Square of 0.743. The results of this study showed that multiple leadership styles, consisting of transformational leadership style, ethical leadership style, and servant leadership style, influence bank performance (P-Value 0.000). Disruption also influences bank performance (P-Values 0.000); however, disruption does not moderate the influence of leadership styles on bank performance (P-Value 0.993). This study emphasizes the importance of multiple leadership styles that combine transformational leadership style, ethical leadership style, and servant leadership style in managing banking business performance. This study significantly contributes to leadership development initiatives in the dynamic Indonesian banking industry and offers future research directions.

Acknowledgment
We thank all respondents that participated in the survey. Data availability can be found in https://bitly.cx/uuN0l

view full abstract hide full abstract
    • Figure 1. Research model of the study
    • Figure 2. Model result
    • Table 1. Reliability testing
    • Table 2. Validity testing
    • Table 3. Demographic table
    • Table 4. R-square
    • Table 5. Hypotheses testing
    • Table A1. Questionnaires
    • Conceptualization
      Anita Maharani
    • Methodology
      Anita Maharani
    • Writing – original draft
      Anita Maharani, Dewi Tamara
    • Writing – review & editing
      Anita Maharani
    • Formal Analysis
      Dewi Tamara
    • Project administration
      Dewi Tamara
    • Validation
      Dewi Tamara
Related Articles

  • Transformational leadership for organizational change in the Lebanese public sector

    Bissane HarbORCID , Dina SidaniORCID doi: http://dx.doi.org/10.21511/ppm.17(2).2019.15
    Problems and Perspectives in Management Volume 17, 2019         Issue #2         pp. 205-216 Views: 2631 Downloads: 1221 TO CITE АНОТАЦІЯ

    The public sector is facing multiple changes. In a constantly changing environment, that is more and more demanding in terms of innovation and performance, the concept of leadership is of particular importance, as it is one of the few tools available to public managers.
    Based on the transformational leadership theory, the aim of this study is to explore how transformational leadership characteristics influence organizational change within the public sector in Lebanon. To serve this purpose, a qualitative approach is adopted based on a series of semi-focused interviews conducted with ten public managers running 10 public administrations. These administrations have undergone significant changes over the past five years.
    The results point out the importance of transformational behaviors adopted by public managers in leading change within the public sector in Lebanon, despite the multiple obstacles. They confirmed the role of two transformational dimensions related to idealized influence and inspirational motivation in the successful implementation of organizational change. This study contributes to better understanding of the role of transformational leadership in promoting change in the public sector.

  • Transformational leadership and change readiness and a moderating role of perceived bureaucratic structure: an empirical investigation

    Badri Abbasi doi: http://dx.doi.org/10.21511/ppm.15(1).2017.03
    Problems and Perspectives in Management Volume 15, 2017         Issue #1         pp. 35-44 Views: 2299 Downloads: 969 TO CITE АНОТАЦІЯ

    The purpose of this study was to examine the relationship between transformational leadership and change readiness through perceived bureaucratic structure among government employees in Rasht. As a methodology, descriptive method was applied using questionnaire to collect data. The studied population consisted of 600 employees from three state organizations including Municipality, Gilan Tax Department and Gilan Justice Court. According to Morgan table, the sample size was estimated at 234. This study examined six hypotheses, which were tested using multiple regression method. The results showed that transformational leadership had a positive direct effect on employee change readiness and its dimensions. However, substitution of the bureaucratic structure in the model eliminated the effect. Finally, the hypothesis on the effect of transformational leadership on change readiness through perceived bureaucratic structure was rejected.

  • Ownership structure and bank performance

    Hamdi Agustin , Sri Indrastuti , Amris Rusli Tanjung , Muhammad SaidORCID doi: http://dx.doi.org/10.21511/bbs.13(1).2018.08
    Banks and Bank Systems Volume 13, 2018         Issue #1         pp. 80-87 Views: 1904 Downloads: 504 TO CITE АНОТАЦІЯ

    The purpose of this study is to evaluate the performance of banks in Indonesia. Specifically, this study has examined the static effect of ownership structure on bank performance in Indonesia over the period 1995–2006. The sample consists of 74 banks, namely 56 private banks, 15 community development banks (BPD), and three federal banks from 1995 to 2006. The data was analyzed using least-squares regression method, the general least squares method, and the method of random effects. The findings of this study show that the BPD performed better compared to private banks. This indicates that BPDs have better performance rather than private banks which is due to the fact that customers can be able to pay loans, they have special knowledge on that area and the performance of BPD is supervised by local government. In addition, the amount of equity, economic growth, financial crisis, and the financial ratios affect the performance of the bank. However, bank status has no effect on bank performance.

Download Preview
Close
Banks and Bank Systems
Banks and Bank Systems