Rising Company's Performance through Leadership Role: Culture, Strategies, and Management System as a Marine State

Wardi, Jeni and Yandra, Alexsander (2018) Rising Company's Performance through Leadership Role: Culture, Strategies, and Management System as a Marine State. In: IOP Conference Series: Earth and Environmental Science.

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Abstract

This research aims to learn the direct influence of transformational and transactional leaderships on Indonesian company's performance through company's culture, strategy, management accounting and control system as a marine state. This research involves descriptive and inferential designs in solving the research problem. To test the model and the hypothesis, SEM analysis is used. The populations of this research are companies registered in Indonesian stock exchange in 2012. The sampling technique uses purposive sampling. The data of the research are obtained from questionnaires distributed to respondents. The respondents are companies' managers represented by accounting and finance managers with the positions 1 and 2 levels below top management team who have direct communication with the top management. The results of the research show that transformational leadership influences company's performance directly, but not the transactional leadership. The company's culture is not the mediation variable in indirect influence on the company's performance, either in transformational or transactional leadership. On the other hand, management control system proves to be the mediation in transactional leadership on the performance but not for transformational leadership. Meanwhile, management accounting system proves to be the mediation variable in the influence of transformational and transactional leaderships. Except the variables of company's culture, strategy, management accounting system and management control system, each directly influences the performance.

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