Transformational Leadership, Work Discipline, and Employee Performance: The Mediation Role of Work Discipline at PT Yura Engineering

Abstract

This study examines the relationship between transformational leadership, work discipline, and employee performance at PT Yura Engineering, including the mediating role of work discipline. The study was motivated by fluctuating employee discipline, particularly tardiness data for 2025–2026, and inconsistent findings in previous studies concerning transformational leadership, work discipline, and employee performance. A quantitative survey approach was employed. The population consisted of 80 employees, and 67 usable questionnaires were obtained. Data were collected through questionnaires and analyzed using IBM SPSS version 27 through validity, reliability, classical assumption, multiple linear regression, t-test, F-test, coefficient of determination, and Sobel test. All questionnaire items were valid and the three constructs were reliable. The regression coefficients were 0.449 for transformational leadership and 0.214 for work discipline. Transformational leadership had a positive and significant partial effect on employee performance (t = 4.670; Sig. < 0.001), while work discipline also had a positive and significant effect (t = 2.239; Sig. = 0.029). Simultaneously, both predictors significantly affected employee performance (F = 22.715; Sig. < 0.001), with an R² of 0.415. The Sobel test produced t = 1.960 and the underlying thesis concluded that work discipline functions as a mediating link between transformational leadership and employee performance. The findings emphasize the importance of integrating inspirational leadership practices with consistent work-discipline management to improve employee performance.