The banking industry currently faces significant challenges due to the rapid growth of financial technology (Fintech) and a deceleration in credit growth. To maintain a competitive advantage, banks must optimize employee performance through effective leadership and innovation. This study aims to analyze the impact of leadership style and organizational innovation on employee performance, mediated by job satisfaction, with organizational culture serving as a moderating variable. Using a quantitative approach, data were collected from employees of DBS Bank Indonesia and analyzed using Moderated Structural Equation Modeling (MSEM). The interaction effect of organizational culture was estimated using the Ping Method. The results demonstrate that organizational innovation has the most dominant positive impact on employee performance. Furthermore, organizational culture was found to significantly moderate the relationship between leadership style and job satisfaction, although the interaction coefficient was modest. These findings suggest that while leadership is crucial, its effectiveness in enhancing job satisfaction is amplified when supported by an innovative and supportive organizational culture. This research provides strategic implications for banking management to prioritize organizational learning and cultural alignment to sustain performance in a volatile market.
Miftahuddin et al. (Fri,) studied this question.