The Influence of Digital Leadership and Organizational Culture on Employee Performance: The Mediating Role of Digital Transformation

Using work-life balance as a mediator, this study seeks to examine the impact of transformational leadership style, organizational culture, and the improvement of employee performance at PT Cerebrum Edukanesia Indonesia. This study takes a quantitative approach, gathering data using surveys and analyzing it using PLS-SEM, which is a form of Structural Equation Modelling. According to the study's results, a transformational leadership style and a supportive company culture can greatly improve workers' productivity by helping them strike a better work-life balance. The work-life balance variable mediates the relationship between transformational leadership style, corporate culture, and employee performance. This study's results can be helpful for business leaders who want to implement transformational leadership practices and create a work-life balance culture in their companies in order to boost employee performance.


Introduction 1.1 Introduce the Problem
Indonesia is still ranked first in the number of startups in ASEAN countries.According to Startup Ranking data, Indonesia is in first place, beating Singapore which is in second place with the number of startups as many as 1,179 startups.The Startup Ranking defines startups as startups with a maximum age of 10 years that have competence, innovation, and a strong technology base, as well as the ability to accelerate business growth.(Katadata.co,accessed on March 15, 2024) As stated by Daryanto & Suryanto (2022:99), performance refers to the outcome of employees' efforts in fulfilling their assigned duties, which may be evaluated based on the level of quality and quantity.The company's ability to achieve its targets is measured by the performance of its employees.
An effective leadership style for an organization is very influential and has an important function for an organization to direct and motivate employees as well as control problems that exist in an organization and can solve them quickly.Based on research conducted by Lai et al. (2020) found that transformational leaders use a variety of behaviors to provoke behaviors that benefit their subordinates organizationally.This will initiate the participation of his subordinates.Workers are more likely to give their all when they are inspired to do so by leaders who can inspire them to change.This often leads to enhanced task performance and improved behaviour among employees.
Transformational leadership style is a leadership style that has a great influence on its followers.Insan (2019:12) posits that transformational leadership serves as a catalyst for motivating its followers to enact constructive transformations.Leaders have the ability to modify the work environment, work motivation, work routines, and work values of their subordinates in order to maximise performance and achieve organisational objectives.At PT Cerebrum Edukanesia Indonesia, the leadership style applied in the company is a transformational leadership style, which is shown by the motivation of the company's managers or leaders in exerting a great influence on their employees.In these companies, leaders show positive changes for their employees so that employees follow the pattern given by the leader.The work environment in the company is also influenced by its leaders.
Paais & Pattiruhu (2020) researched the effects of leadership style and organizational culture on employee performance and found that both had positive and substantial effects.Organizational culture is the sum of the norms and practises that employees have come to expect from working for a certain company.An organization's culture is a key strategic factor in determining how well its people resources and overall performance are utilized.Further, the way an organization's culture is structured determines its future course and how it responds to opportunities and threats in its external environment.Organizational culture is defined as the set of principles that employees follow when doing their jobs (Susanto in Ganyang, 2018:130).Based on these principles, we can determine if a course of action is appropriate, whether it is suggested, and how to proceed.A healthy work-life balance can have an effect on how well an employee performs.Research by Kishore (2020) indicates that contemporary workplaces place a premium on work-life balance.The company's management should create a work-life balance policy in order to boost employee productivity.
According to Ricardianto (2018:165), the term "work-life balance" refers to a state of harmony between an individual's professional and personal lives as it relates to their workplace.This state of affairs is studied in reference to people's performances on the job and the potential correlation between work-life balance and productivity.Employees strive for a work-life balance in an effort to enhance their performance.The ability to divide one's time between work and leisure is at the heart of the concept of work-life balance.At PT. Cerebrum Edukanesia Indonesia has programs that support work-life balance, the program supports the balance of professional life, work and personal life.In the program, there are many activities such as sports with various kinds of sports, then there are trips for vacations with other office employees.This research will be conducted on Cerebrum employees on the grounds that there is a phenomenon that occurs in the object of this research which makes the researcher more confident to conduct research related to employee performance, leadership style and transformational and company culture, and also work-life balance.The preliminary observations have shown issues with the variables associated with this study.
Therefore, the author is interested in conducting a study entitled "The Influence of Transformational Leadership Style and Organizational Culture, on Employee Performance Improvement through Work-Life Balance as a Mediator Variable".

Transformationan Leadership
An effective leadership style for an organization is very influential and has an important function for an organization to direct and motivate employees as well as control problems that exist in an organization and can solve them quickly.Transformational leadership style is a leadership style that has a great influence on its followers.Insan (2019: 12) asserts that transformational leadership serves as a catalyst for motivating its followers to enact constructive transformations.Leaders have the ability to modify the work environment, work motivation, work routines, and work values of their subordinates in order to maximise performance and achieve organisational objectives.According to Yukl (2015:316) Transformational leadership style is a leadership style that makes followers feel admiration, loyalty, respect, and trust in their leaders.Transformational leadership style is a leadership style used by a leader to increase motivation and morale and instill employee admiration, loyalty, respect, and trust in his leader.H1: Transformational leadership is significantly and favorably impacted to work life balance.H3: Transformational Leadership is significantly and favorably impacted to employee performance.H6: Transformational Leadership affects Mediating the relationship between work-life balance and employee performance.

Corporate Culture
Schein (2009) defines culture as the shared assumptions formed by a group in reaction to experiences both within and outside the group.Since these assumptions are based on reality, they are instilled in new members as the correct perspective on these issues.Culture refers to a collective system of beliefs and practices that are commonly held and not explicitly communicated, which a community develops in order to address both external and internal obstacles.These ideas are substantiated by their efficacy and imparted to new members as the correct approach to comprehend, reason, and experience in connection to these issues.Schein (1985) in Liao (2018) defines corporate culture as a collection of fundamental beliefs that companies commonly establish and develop in order to integrate internally and adapt to the external environment.These beliefs are not only widely accepted by company members, but also consistently instilled in new members.Corporate culture encompasses the norms, values, and assumptions that guide decision-making and actions of both decision-makers and company members.
As stated by Susanto in Ganyang (2018:130), organisational culture refers to the set of values that provide guidance to the employees of an organisation in performing their responsibilities and behaviours.These values provide answers to whether an action is right or wrong, recommended or not, and provide a basis for action.According to Sedarmayanti (2017:351), organisational culture refers to the set of beliefs and attitudes that employees hold, which in turn shape their behaviour in their day-to-day activities.H2: Corporate Culture is significantly and favorably impacted to Work Life Balance.H4: Company Culture is significantly and favorably impacted to Employee Performance H7: Organizational Culture affects Employee Performance through Work-Life Balance as a mediating variable.

Work Life Balance
A person achieves "work-life balance" when their personal and professional lives are harmonious in relation to their employment, as stated by Ricardianto (2018:165).A good work-life balance is linked to increased productivity in the office, which is the premise around which this situation's research is built.A work-life balance is something that employees aim for because they want to be more productive.At its core, work-life balance is about finding a happy medium between working too much and relaxing too much.
Moorhead and Griffin, as cited in Hafid & Prasetio (2017:137), define Work-Life Balance as an individual's capacity to effectively manage the competing demands of their professional and personal lives, including the needs of their family.Implementing work-life balance can yield significant advantages for the firm.The incorporation of flexible working hours has been proved to enhance employee loyalty and decrease staff turnover.Companies that provide facilities for their employees are proven to 19 reduce employee stress such as sports facilities, hobbies, and arts that can be used before or after work so that they can increase productivity at work.

The concept of Employee Performance
As stated by Daryanto & Suryanto (2022:99), performance refers to the outcomes produced by employees when they fulfil their assigned duties and obligations.These outcomes can be evaluated based on their quality and quantity.According to Kasmir (2019:184) states that employee performance is the implementation of functions in an organization that are demanded by employees, it includes the deeds, achievements and skills of an employee at work.According to Armstrong (2021:1), Organizational performance can be enhanced through the systematic process of employee performance, which focuses on enhancing both individual and team performance.According to Yulianto (2020:8), performance is a measure quantitatively, qualitatively, punctuality, and independence in completing work to find out the extent to which employees have carried out the duties and responsibilities imposed on employees within a certain period of time.
The following figure shows the model used in this investigation:

Method 2.1 Research design
The approach employed in this study is a quantitative methodology.Sugiyono (2019:16) defines the contingency research method as a positivist approach to studying specific populations and samples.This method involves collecting data and conducting statistical analysis to test hypotheses.This approach, being a scientific method, has successfully adhered to the scientific principles of being concrete or empirical, objective, measurable, logical, and systematic.Quantitative approaches frequently aim to ascertain the correlation between two or more variables.According to Iba & Wardhana (2024), the quantitative approach method provides a more holistic and flexible perspective, which can provide a broader and deeper insight into the phenomenon to be studied.

Sample and data collection
This population is made up of the 50 employees in the Educational Services in Indonesia.This study used saturation sampling as its sample strategy, which necessitated include all 50 population members.It is evident from Table 1 that 44 responders, or 68% of the sample, are part of the majority.Of the respondents, 41% were between the ages of 41 and 50, or 27 people.Likewise, 29 individuals (45% of the sample) reported a working lifetime of between six and fifteen years.

Data analysis
Data analysis techniques can be used after respondents' information is obtained to support the research.Each study will use a different analysis method, which is adjusted to the details of the research conducted.
In this study, the researcher uses Demonstrate Structural Equations (SEM) as an analysis approach.SEM is a technique used to investigate the complex relationships between variables and indicators, as well as the interactions between variables, while considering the effects of measurement errors (Hair et al., 2019).Halfway Slightest Squares Auxiliary Condition Modeling (PLS-SEM) is an information analysis method used to examine how variables in research are related to each other (Chin & Marcoulides, 1998).
Researchers can test the interaction between factors using this strategy.The purpose of the SEM technique is to fully explain how the variables in the study are interrelated.

Evaluation of measurement model (outer model)
A quantitative assessment of the correlation between indicators and latent variables is conducted at the measurement model, also known as the outer model.Each validity and reliability test consists of two separate tests.Figure 2 depicts an external model using the Partial Least Squares (PLS) method.

Figure 2. Outer Moder
The mean value of the squared loading indicators connected to the construct is known as the Average Variance Extracted, or AVE.As a result, the AVE number, which must be larger than 0.5 to be considered minimum, indicates the degree of similarity within a structure (Hair et al., 2019).In addition, the composite reliability and Cronbach's alpha criteria were evaluated to conduct the reliability test.Tests are considered to meet standards if they earn a score of greater than 0.7.The data processing findings from the Smart PLS program showed that all variables had an AVE value more than 0.5, with the Work Life Balance variable (X3) having the highest AVE value of 0.740.while the lowest was 0.721 belonging to the Transformational Leadership variable (X1).
Furthermore, from the calculation results, a loading factor value greater than 0.7 can be concluded that all construction forming indicators are declared valid and have good ability in explaining the variables that will be formed, so that the prerequisites for convergent validity have been met.The results of the exterior loading test values carried out in this investigation are shown in the table below: It is clear from the data in the above table that the outer loading value of the entire item is more than 0.7.
Given that each study variable's outer loading value is more than0.7,it is possible to conclude that each one has passed the validity test.

An analysis of the inner model, or structural model
According to Ghozali & Latan (2015), this study assesses the connection between latent variables using the internal model, which goes by more names than just that: structural model, substantive theory, and the inner relation.The determination coefficient, or R-square, measures how well the value of exogenous structures can account for variations in the endogenous construct.Life Balance.The remaining 13.2% comes from characteristics that weren't part of the study model.With a R Squared value greater than 0.67, the PLS model used in this study exhibits excellent prediction accuracy, often known as good of fit.

Hypothesis test results
There are two conditions for testing, and there is a certain procedure or step that must be followed while testing a hypothesis.A prerequisite for this is that the t statistic's value needs to be higher than 1.96.A tvalue statistic of 1.96 is thought to suggest a strong influence.In addition to statistical t-values, p values < 0.05 are critical since they help determine whether the study's hypothesis can be accepted or rejected.
The following are the results of this study's hypothesis test:  With a 95% confidence level, we can accept Ha and reject Ho based on the study's results, in which it is demonstrated that Y is substantially affected by X2, the culture of the organization.Thus, it follows that an organization's culture can either positively impact employee performance or negatively impact employee performance.A p-value of 0.022 and a path coefficient of 0.343 are both below the significance level of 0.05 (a).e. Work life balance has a positive and significant effect on employee performance.
Based on the study's findings, which show a positive value with a p-value of 0.002 < 0.05 (a) and a path coefficient of 0.358, we can reject Ho and accept Ha at a 95% confidence level.This indicates that Work Life Balance (X3) significantly affects Employee Performance (Y), suggesting that a better work-life balance will lead to better performance and that a poor work-life balance can lead to poor performance.

Conclusion
The following findings have been reached by the researcher following the analysis and discussion presented in the preceding chapter: a.A good work-life balance can be the consequence of good transformational leadership, whereas a terrible work-life balance can be the outcome of bad transformational leadership.This is because X1, Transformational Leadership, significantly affects X3. b.A good work-life balance can be the consequence of an excellent organizational culture, whereas a poor culture can lead to a poor work-life balance.This is because organizational culture (X2) significantly affects work-life balance (X3).
c. Employee Performance (Y) is strongly impacted by Transformational Leadership (X1), which means that good leadership in this area will lead to higher performance from employees, while bad leadership in this area can have the opposite effect.
d.The second factor, organizational culture, significantly affects Employee Performance (Y) indicates that a company's culture affects how well its employees perform; conversely, a toxic work environment might have the opposite effect.
e. Work Life Balance (X3) A good work-life balance is linked to high performance, while an unhealthy work-life balance is linked to low performance, according to research that found a strong correlation between work-life balance and employee performance (Y).
f. Meaning that a better work-life balance, in conjunction with transformational leadership (X1), can significantly effect employee performance (Y).This is because X1 (transformational leadership) and Y (employee performance) are related, but Y is moderated by work-life balance.Thus, it is plausible to infer that the connection between Transformational Leadership (X1) and Employee Performance (Y) is moderated by Work Life Balance (X3).
g. Through the mediation of work-life balance, organizational culture (X2) has a substantial impact on the productivity of workers (Y).Consequently, a better work-life balance, when combined with a more positive company culture, can greatly enhance employee performance.This leads us to believe that Work Life Balance (X3) has done a good job of mediating the connection between Organizational Culture (X2) and Employee Performance (Y).

Figure 1 .
Figure 1.Research Framework Leadership (X1) and Organizational Culture (X2) accounted for 82.2% of the Work-Life Balance (X3) in this study, with other characteristics outside the research model contributing the biggest portion of the remaining 17.3%.In addition, 86.8% of the impact on Employee Performance (Y) comes from Transformational Leadership (X1), X2 from Organizational Culture, and X3 from Work

c.
Transformational leadership has a positive and significant effect on employee performance.At a 95% confidence level, we can accept Ha and reject Ho based on the study's results, which show that transformational leadership (X1) has a substantial impact on worker output (Y).This indicates that employees will perform better under good transformative leadership and poorly under bad leadership.A p-value of 0.030 and a path coefficient of 0.264 are both below the significance level of 0.05 (a).d.Organizational culture has a positive and significant effect on digital transformation.

Table 5 . Hypothesis test
Based on the table above, an explanation of the hypothesis can be obtained as follows: a.