Stuctural Equation Modelling: How Job Satisfaction And Deviant Behavior Shape Employee Performance

Abstract

Leadership and digitalization have emerged as central factors influencing performance, yet prior research offers mixed findings. This study examines the influence of transformational leadership (TL) and digitalization (DT) on employee performance (EP), with deviant behavior (DB) and job satisfaction (JS) serving as mediating variables. A quantitative research design was applied, using survey data collected from 100 employees of the state electricity company in Indonesia. Structural equation modeling with partial least squares (SEM-PLS) was employed to analyze direct and indirect relationships. The findings demonstrate that TL and DT significantly improve EP. JS plays a strong mediating role, enhancing the positive effects of TL and DT on EP. Conversely, DB shows a negative mediating role, reflecting the risks associated with poor leadership practices and digital overload.