Leadership Styles and Organizational Culture in Enhancing Employee Performance: A Systematic Review

Authors

  • I Gede Endy Permana Putra Universitas Diponegoro, Semarang, Indonesia
  • M. Faiz Arsyadani Amrullah Universitas Diponegoro, Semarang, Indonesia
  • Eisha Lataruva Universitas Diponegoro, Semarang, Indonesia
  • Suharnomo Suharnomo Universitas Diponegoro, Semarang, Indonesia

DOI:

https://doi.org/10.63208/210113-578

Keywords:

Digital Economy, Employee Performance, Leadership Styles, Organizational Culture

Abstract

This study examines the relationship between leadership styles, organizational culture, and employee performance in the digital economy. The study employs a Systematic Literature Review (SLR) to synthesize findings from 20 quantitative studies published between 2020 and 2025. The literature was identified through Google Scholar using predefined keywords and selection criteria focusing on leadership style, organizational culture, and employee performance. The findings indicate that leadership style and organizational culture generally have positive relationships with employee performance, although the strength and direction of these relationships vary across organizational contexts. Transformational, adaptive, and digital-oriented leadership can support employee motivation, learning, collaboration, innovation, and adaptation to organizational change. Organizational culture also contributes to performance by fostering learning, openness, collaboration, engagement, and adaptability. However, several studies demonstrate that leadership does not always have a significant direct effect on performance. Motivation, job satisfaction, organizational learning culture, discipline, employee engagement, and organizational commitment may function as intervening mechanisms. Overall, the findings indicate that employee performance in the digital economy is shaped by the interaction between leadership, organizational culture, and employee-related factors.

References

Alakaş, E. Ö. (2024). Digital transformational leadership and organizational agility in digital transformation: Structural equation modelling of the moderating effects of digital culture and digital strategy. The Journal of High Technology Management Research, 35(2), 100517. https://doi.org/10.1016/j.hitech.2024.100517

AlNuaimi, B. K., Singh, S. K., Ren, S., Budhwar, P., & Vorobyev, D. (2022). Mastering digital transformation: The nexus between leadership, agility, and digital strategy. Journal of Business Research, 145, 636-648. https://doi.org/10.1016/j.jbusres.2022.03.038

Amalina, N., Salsabila, A. S., Solih, R., & Haryadi, D. (2024). The role of leadership style and organizational culture on employee performance. International Journal of Applied Finance and Business Studies, 11(4), 747-754. https://doi.org/10.35335/ijafibs.v11i4.216

Aristarini, C. C., Riyadi, S., & Halik, A. (2024). The effect of transformational leadership and organizational culture on employee performance with work environment as mediation variable (study at PT Japura Inti Pangan). International Journal of Economics (IJEC), 3(1), 98-108. https://doi.org/10.55299/ijec.v3i1.574

Azi, R., Tanuwijaya, J., & Gunawan, A. W. (2024). The influence of digital leadership on employee performance through digital culture and innovation work behavior at Bank Indonesia. Jurnal Mantik, 7(4), 4021-4030. https://doi.org/10.35335/mantik.v7i4.4928

Basuki, R., Panggabean, M. S., & Warsindah, L. (2024). The effect of organizational culture on employee performance mediated by person-organization fit, organization commitment, and employee engagement in the millennial generation in companies Badan Usaha Milik Negara. International Journal of Science, Technology & Management, 5(2), 405-410. https://doi.org/10.46729/ijstm.v5i2.1067

Chatterjee, S., Chaudhuri, R., Vrontis, D., & Giovando, G. (2023). Digital workplace and organization performance: Moderating role of digital leadership capability. Journal of Innovation & Knowledge, 8(1), 100334. https://doi.org/10.1016/j.jik.2023.100334

Dewi, N. N., & Wibowo, R. (2020). The effect of leadership style, organizational culture and motivation on employee performance. Management Science Letters, 10(9), 2037–2044. https://doi.org/10.5267/j.msl.2020.2.008

Evi, N., & Tine, Y. (2022). The influence of organizational culture, work motivation, transformational leadership on employee performance and the implication on organizational performance. Journal Research of Social, Science, Economics, and Management, 1(11), 1830-1850. https://doi.org/10.36418/jrssem.v1i11.196

Fatahuddin, A. F., & Tanuwijaya, J. (2022). Pengaruh leadership style dan organizational culture terhadap employee performance melalui job satisfaction sebagai variabel mediasi pada karyawan PT. Bank Mandiri Unit SME & Micro Risk Group. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 6(2), 351-374. https://doi.org/10.31955/mea.v6i2.1988

Fauzi, M., Rahwana, K. A., & Sutrisna, A. (2022). The influence of leadership style and organizational culture on the employee performance at PR. HM Putra Tasikmalaya. Journal of Indonesian Management, 2(2), 275–280. https://doi.org/10.53697/jim.v2i2.672

Ferine, K. F., Aditia, R., & Rahmadana, M. F. (2021). An empirical study of leadership, organizational culture, conflict, and work ethic in determining work performance in Indonesia's education authority. Heliyon, 7(7). https://doi.org/10.1016/j.heliyon.2021.e07698

Juhaeni, S., Prananti, H. E., Wekadigunawan, C. S. P., & Hasyim, H. (2023). Effect leadership style and organizational culture on performance with work motivation as intervening variable. Riset: Jurnal Aplikasi Ekonomi Akuntansi dan Bisnis, 5(1), 085-097. https://doi.org/10.37641/riset.v5i1.163

Lusiana, H. (2023). Analysis of employee performance: Organizational culture and transformational leadership. International Journal of Economics, Business and Accounting Research (IJEBAR), 7(3). https://doi.org/10.29040/ijebar.v7i3.11247

Martínez-Caro, E., Cegarra-Navarro, J. G., & Alfonso-Ruiz, F. J. (2020). Digital technologies and firm performance: The role of digital organisational culture. Technological Forecasting and Social Change, 154, 119962. https://doi.org/10.1016/j.techfore.2020.119962

Murniawati, A., & Achmad, N. (2024). The effect of transformational leadership, organizational culture, and work-life balance on employee performance of regional financial agency of Karanganyar Regency mediated by organizational commitment. Jurnal Ilmiah Manajemen Kesatuan, 12(6), 2273–2286. https://doi.org/10.37641/jimkes.v12i6.2926

Nguyen, N. P., Hang, N. T. T., Hiep, N., & Flynn, O. (2023). Does transformational leadership influence organisational culture and organisational performance: Empirical evidence from an emerging country. IIMB Management Review, 35(4), 382-392. https://doi.org/10.1016/j.iimb.2023.10.001

Niken, N., Putra, R. B., & Azka, B. P. (2022). The influence of leadership style and organizational culture on employee performance through work motivation as an intervening variable. Economic Education Analysis Journal, 11(2), 201–216. https://doi.org/10.15294/eeaj.v11i2.58105

Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., ... & Moher, D. (2022). The PRISMA 2020 statement: an updated guideline for reporting systematic reviews. Revista Panamericana de Salud Publica, 46, e112. https://doi.org/10.1136/bmj.n71

Pangarso, A., Saragih, R., & Nuriz, W. A. (2021). Transformative leadership and organizational culture effect on employee performance: Evidence from the Indonesia Logistics Bureau. Jurnal Manajemen dan Kewirausahaan, 23(2), 148-158. https://doi.org/10.9744/jmk.23.2.148-158

Qiao, G., Li, Y., & Hong, A. (2024). The strategic role of digital transformation: Leveraging digital leadership to enhance employee performance and organizational commitment in the digital era. Systems, 12(11), 457. https://doi.org/10.3390/systems12110457

Sukarno, G., & Rosmawati, L. (2024). Motivation as mediation for the relationship between situational leadership style, organizational culture, and work environment on employee performance at IZI Surabaya Branch Office. Formosa Journal of Multidisciplinary Research: PT Formosa Cendekia Global, 3(7), 2639-2658. https://doi.org/10.55927/fjmr.v3i7.10099

Sutia, S., Saparudin, M., Adha, S., & Rahardjo, B. (2022). Leadership style, organizational culture and job satisfaction on employee performance: Study in food manufacturing companies. Priviet Social Sciences Journal, 2(1), 23-29. https://doi.org/10.55942/pssj.v2i1.141

Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence‐informed management knowledge by means of systematic review. British Journal of Management, 14(3), 207-222. https://doi.org/10.1111/1467-8551.00375

Udin, U. (2023). Linking transformational leadership to organizational learning culture and employee performance: The mediation-moderation model. International Journal of Professional Business Review: Int. J. Prof. Bus. Rev., 8(3), 16. https://doi.org/10.26668/businessreview/2023.v8i3.1229

Vidhia, C. (2023). The effect of transformational leadership and organizational culture on employee performance. Enrichment: Journal of Management, 12(6), 5181-5190. https://doi.org/10.35335/enrichment.v12i6.1107

Widyaningrum, L. R., & Amalia, L. (2023). The impact of transformational leadership, organizational culture, and employee engagement on employee performance at Indonesia’s flight school. Jurnal Multidisiplin Madani (MUDIMA), 3(4), 802-810. https://doi.org/10.55927/mudima.v3i4.2587

Downloads

Published

2025-06-30

How to Cite

Putra, I. G. E. P., Amrullah, M. F. A. ., Lataruva, E. ., & Suharnomo, S. (2025). Leadership Styles and Organizational Culture in Enhancing Employee Performance: A Systematic Review. Entrepreneurship and Innovation Review, 3(1), 76-90. https://doi.org/10.63208/210113-578

About this article

Check for updates
Submitted: Apr 16, 2025
Final Revised: May 28, 2025
Accepted: Jun 06, 2025
Published: Jun 30, 2025
Volumes:
Vol. 3 No. 1 (2025) Pages 76-90
DOI:
10.63208/210113-578
Abstract view: 143
Download: 35

Similar Articles

1-10 of 45

You may also start an advanced similarity search for this article.