HOW TRANSFORMATIONAL LEADERSHIP IGNITES OUTSTANDING PERFORMANCE IN STARTUP COMPANY THROUGH PSYCHOLOGICAL EMPOWERMENT
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Abstract
In recent years, startup companies, particularly in Indonesia, have garnered attention due to several startup closures resulting from a lack of product-market fit, marketing issues, team problems, and financial challenges. These issues are related to what employees do, as their tasks stem from the company's objectives that must be executed swiftly and accurately. Additionally, employees have responsibilities and obligations that demonstrate behaviors of working on and supporting tasks in line with the company's goals and to achieve SDG 9, with a specific focus on their roles in driving innovation and sustainable development within the evolving landscape of startup industries. The purpose of this research is to examine the mediating role of psychological empowerment in the relationship between transformational leadership and performance in startup company X, using a non-experimental qualitative method. This study utilized three questionnaires: the Individual Work Performance Questionnaire, the Multifactor Leadership Questionnaire, and the Psychological Empowerment Scale, administered to employees at startup company X. The participants in this study consist of 154 employees at startup company X in Jakarta, Indonesia. The results indicate that the role of psychological empowerment can mediate the relationship between transformational leadership and performance. The findings of this study support the Job Demand and Resource Theory and the Broaden-and-Build Theory in their influence on performance.
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