THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP, DIGITAL COMPETENCE AND WORK ENVIRONMENT ON EMPLOYEE PERFORMANCE OF EMPLOYEES IN NATURAL GAS PROCESSING AND NATURAL GAS TRANSMISSION OF UPSTREAM PETROCHEMICAL INDUSTRY COMPANY IN THE EASTERN ECONOMIC CORRIDOR
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Abstract
This study aimed to examine the levels of transformational leadership, digital competence, work environment, and employee performance, and to investigate the direct and indirect effects of these variables on employee performance in a primary petrochemical company located in the Eastern Economic Corridor (EEC) development project. The sample consisted of 300 employees working in gas separation and natural gas transmission pipeline operations, selected through proportionate stratified random sampling. Data were collected using an online questionnaire. Descriptive statistics were used for data analysis, and hypotheses were tested using Structural Equation Modeling (SEM). The results indicated that the key variables were overall at high to very high levels, with employee performance at the highest level ( = 4.63, SD = 0.32). The model demonstrated acceptable fit to the empirical data (χ²/df = 2.004, CFI = 0.958, RMSEA = 0.058). Employee performance was positively and directly influenced by transformational leadership (β = 0.25), digital competence (β = 0.21), and work environment (β = 0.46), with statistical significance at the 0.01 level. The model explained 57% of the variance in employee performance (R² = 0.57). In addition, transformational leadership had indirect effects on employee performance through digital competence (IE = 0.090) and through work environment (IE = 0.294), and showed the highest total effect (TE = 0.63).
Keywords: Transformational leadership, Digital competence, Work environment, Employee performance, Petrochemical industry
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