Conceptualizing the Role of Organizational Performance in Indonesia

Increasing competition that is becoming more competitive in the non-profit industry, especially increasing organizational pressure to develop, such as lowering costs, making workers more optimal, and doing things better with cost efficiency. Organizational demands include searching and recruiting resources which are capable of directing, maintaining, and developing organizations in various target communities and current developments. This paper aims to evaluate and analyse the effect of transformational leadership on organizational performance mediated by organizational learning and organizational commitment. This research was conducted with the help of descriptive methods at A-certified Child Welfare Institutions (LKSA) in Indonesia. The total sample size used in this research consisted of 185 respondents. The approach used in this research is the Structural Equation Model (SEM) with Partial Least Square (PLS) 3.0 analysis tools. The results showed that Transformational Leadership which has a positive and significant effect on Organizational Performance, Organizational Learning and Organizational Commitment. Organizational Learning has a positive and significant effect on Organizational Performance, Organizational Commitment has no significant effect on Organizational Performance, Organizational Learning is able to mediate the effect of Transformational Leadership on Organizational Performance, and Organizational Commitment is unable to mediate Transformational Leadership on Organizational Performance.