The Role of Change Leadership on Employee Performance: Social Capital as Mediating Variable at Village-Owned Enterprises

Village-Owned Enterprises (VOE) are an instrument for local economic empowerment with various types according to the potential of the village. The spirit of VOE development departs from the potential that villages have but have not yet optimized, which has an impact on society directly or indirectly. This capacity building aims to improve the economy and welfare of village residents through developing economic business. The success of a business entity can be seen from the performance of its employees. Employee performance is an important indicator in achieving organizational performance. Organizational factors are represented by the role of change leadership which is considered as a visionary figure and is able to mobilize all members of the organization to achieve organizational goals. This means that leadership is the main factor, then it will have an impact on the formation of social capital, and finally it will have an impact on the quality of relationships that lead to performance. Change leaders have sensitivity and a positive view of the future which can influence the performance of their followers with the social capital that has been built between the leader and followers.