The Role of Job Satisfaction in the Relationship between Transformational Leadership, Knowledge Management, Work Environment and Performance

Abstract

To measure the effect of transformational leadership was aimed this study,knowledge management and work environment on performance of the employee of a packaging industry in Tangerang which are mediated by job satisfaction. Simple random sampling to 351 population of employees done as data collection. 221 samples of the questionnaire results werereturned and valid. The SEM method with SmartPLS 3.0 software is used in data processing. Transformational leadership and knowledge management do not significantlyinfluenceemployee performance, both directly and indirectly through job satisfaction mediation are results conclusions of this study. Meanwhile, work environment have a significant effect on employee performance, both directly and indirectly through mediating job satisfaction. Job satisfaction have a significant effect on employee performance.A model for building employee performance among the packaging industry employees was proposed by this new research in Tangerang through enhancing positive workenvironment and manage implementation of transformational leadership practice and knowledge management with job satisfaction as a mediator. The way to improve employee readiness in facing the era of industrial revolution 4.0 could be pave by this research.