International Journal of

Entrepreneurship and Business Management

Vol.1, No.2, 2022
pp. 128-138
e-ISSN: 2808-716X

The Influence of Leadership Style on Employee

Performance: A Systematic Literature Review
Muhizan Tamimi1, Sopiah2
1,2,
(Departemen Manajemen Fakultas Ekonomi dan Bisnis, Universitas Negeri Malang, Indonesia)
1
[email protected]; [email protected]

DOI: https://doi.org/10.54099/ijebm.v1i2.360

ARTICLE INFO ABSTRACT

Purpose – This systematic literature review aims to synthesize several
studies related to the influence of leadership style on employee
Article history:
performance. Methodology/approach – This study was compiled using
Received: 23 September 2022 Preferred Reporting Items for Systematic Review and Meta-Analysis
Revised: 14 November 2022 from research related to the influence of organizational culture on
Accepted: 28 November 2022 employee performance. The data collection method uses the Population,
Intervention, Comparison, and Outcome methods using 2 accesses,
Keywords: Systematic Literature namely Google Scholar and Wiley Online Library. A total of 259 data
Review, Leadership Style, were filtered using data inclusion criteria so that 30 data were obtained
Employee Performance that were by the eligibility standards. Findings – it was found that there
were forty-five (45) hypotheses related to leadership style and
employee performance. Based on the effect and function of the data
variables, they are grouped into four (4), namely, a significant positive
effect, no influence and mediating variables, and moderating variables.
Novelty/value – From the many types of leadership styles and various
types of organizations, it is necessary to classify various studies related
to leadership styles and employee performance in the last 5 years
starting from 2017 to 2022. This systematic literature review uses data
from Scopus and Coopernicus-indexed journals.

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

INTRODUCTION
Human resources have a strategic role in the organization because after all, human resources are the
driving force of the organization (Bangun, 2018). Human resources also have a major influence that
must be managed to improve organizational effectiveness and efficiency through human resource
management to obtain, maintain, and develop them to support the achievement of organizational goals
(Halisa, 2020).
Organizational goals will be achieved when the human resources in it work optimally (Sri
Widodo, 2016). To achieve optimal productivity, of course, a leadership style is needed that is
following organizational conditions so that it can influence, guide, and evaluate each individual or
group within the organization (Istikomah & Haryanto, 2020).
In an organization, synergy is needed between the various stakeholders in it. These stakeholders
include owners, directors, management, as well as line employees from each existing field of work
who have an active or passive role to achieve organizational goals. This goal can be achieved if there

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 International Journal of Entrepreneurship and Business management Vol.1, No.2, (2022)

is a systematic management flow that is recognized by the leadership and all members of the
organization (Sulastri, 2012). Good leadership is related to fairness in leading, having wisdom, and
providing direction and instructions at a reasonable level (Tamimi et al., 2022). This means that
leadership style is a determining factor in the rise and fall of employee productivity.
Istikomah & Haryanto (2020) also revealed that leadership is the main spear in an organization to
achieve the goals the organization wants. The existence of a leader makes the management of an
organization to be directed according to planning and able to provide examples or guidance regarding
the duties and responsibilities of each field under it. So that good leadership can improve the quality
of the productivity of their subordinates (Siti Nur Aisah, 2020).
Based on the description above, it is clear that one of the most important factors in improving
employee performance is leadership style. This systematic literature review aims to synthesize several
published studies relating to the influence of leadership style on employee performance. Sources of
research data using secondary sources from previous studies.

METHOD
This systematic literature review was compiled based on the preferred reporting items for systematic
review and meta-analysis (prisma) from research related to the impact of leadership style on
representative execution. Data collection uses the population, intervention, comparison, and outcome
(pico) method. This literature review data collection method uses 2 accesses, namely google scholar at
https://scholar.google.com/ and Wiley online library at https://onlinelibrary.wiley.com/.

Table 2.1 PICO

PICO Information
Population Company employees and organizational
members
Intervention Leadership style
Outcome Employee performance improvement

The strategy that will be used by the author is to find appropriate literature using the pico method.
The keywords used to search Garuda and Google Scholar are (influence/relationship) and (leadership)
and (in improving/towards) and (employee productivity/performance). Researchers get some literature
that is by what is desired. After using the pico method, the next step is to extract data/literature that
has been collected using the inclusion criteria, aiming to narrow down the data obtained so that
researchers can find and collect appropriate literature.

Data Inclusion Criteria

This systematic literature review will take various study designs in terms of inclusion criteria as
follows:

Table 2.2: data inclusion criteria

Type inclusion
Literature type Research articles
Publication Year 2017-2022
Origin of literature International
Language English language literature
Literature standard Scopus or Copernicus-indexed literature
Sample Employees or members of the organization
Research methods Correlational

After determining the data inclusion criteria, it is continued by searching for articles on Google

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 Muhizan Tamimi, Sopiah; The influence of leadership style….

Scholar and Wiley Online Library with the following stages:

Figure 2.1: Prisma

RESULT AND DISCUSSION
The author has conducted a review of the literature that has been collected. After collecting data in the
form of literature, the authors then filter the literature using pico and data inclusion criteria to obtain
literature that can be assessed as appropriate according to research needs. For this reason, the
following is a description of the results of a literature review of these data.

General Characteristics Of The Literature Review

The following are general characteristics of the literature that will be reviewed with justifiable
validity. General characteristics contain summaries and main points of discussion from the selected
literature in tabular form in the form of meaning. General characteristics in this literature review refer
to data inclusion criteria.
In the year of publication, there were 9 articles published in 2019, 7 articles in 2020, 6 articles in
2018, and consecutively 4, 2, and 2 in 2021, 2017, and 2022. These articles come from various
countries ranging from Asia to Europe. Most of them came from Indonesia as many as 17 articles or
around 56%. In addition, articles also come from China, Iran, Saudi Arabia, the Netherlands, Taiwan,
Pakistan, India, Timor Leste, Spain, and Germany.
The articles studied were entirely in English and it is certain that they are credible articles because
they come from Scopus or Copernicus-indexed journals. In addition, the suitability of the article with
the theme is also very important. This relates to the relevance of the data to the research topic. So that
filtering is done using data inclusion criteria.

Literature Review Analysis

The literature that has been reviewed is thirty (30) literature. Each literature has a diversity ranging
from research designs, research methods, to different results and conclusions. There is literature that
only examines the variables of leadership style and employee performance. In addition, some
juxtapose with other variables. Among them are using motivation, knowledge sharing, organizational
culture, job satisfaction, organizational commitments, and so on. So that it can be seen which variable
dominates the influence on employee productivity.

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One of the ways used to explore the literature is to examine the hypotheses in each literature.
Through this method, it was found that there were forty-five (45) hypotheses related to leadership
style and employee performance. Based on the effect and function of the data variables, they are
grouped into four (4), namely, a significant positive effect, no influence and moderation variables, and
mediation variables.

a. Positive and significant influence

Through the literature, it can be seen that there is an influence between leadership styles on
employee performance. If the leadership style increases, the employee's productivity also increases.
There are twenty (20) hypotheses with the results of leadership style having a positive and significant
effect on employee performance. Not only has a positive and significant effect, but also several of
these articles show that leadership style is the variable that most influences productivity. This was
revealed by Erina (2021) who stated that 75% of employee performance is influenced by leadership
style.
Indicators of leadership style that have a positive and significant influence on employee
performance can be explained from various aspects. These aspects can be explained through
indicators of leadership style variables. Each organization has different aspects as indicators of
leadership style variables. Arman et al. (2019) explain the aspects used are charismatics, inspirational
motivation, intellectual stimulation, and individual consideration.
In addition, Gomar Sinaga et al. (2018)explain the leadership style indicators used in their research
include charismatic, considerate, and intellectual haves succeeded in developing and communicating a
new vision to achieve company goals, paying attention to the needs of subordinates, aligning
subordinate goals and leaders, groups, and organizations and moving followers to exceed the expected
productivity. Whereas in the productivity aspect, the indicators used are quantity of work, quality of
work, knowledge about work, creativity, cooperation, awareness that can be trusted, initiative, and
personal quality (Gomar Sinaga et al., 2018).

b. Has no influence
There are six (6) hypotheses that explain the insignificant effect. This means that if there is an
increase or decrease in an aspect of leadership style, it will not affect any aspect of employee
performance. This is revealed in the research of Eliyana et al. (2019) which states that leadership style
does not affect performance either directly or indirectly.
Fakhri et al. (2020; Supriyanto et al. (2020) show that leadership style has little significance on
employee performance. So it can be concluded that leadership style does not influence employee
performance.

c. Moderating variable
As far as the research conducted by the researcher is by the data criteria in this literature review,
there are four (4) data linking leadership style and employee performance from a moderating point of
view. The variables of benevolent leadership and moral leadership were used to moderate the effect of
the autocratic leadership style on employee performance (Gu et al., 2020). In addition, Rita et al.
(2018) and Wang & Guan (2018) use organizational citizenship behavior and power gap variables as
moderating variables.

d. Mediation variable
The data shows that there are fifteen (15) pieces of literature that link leadership style and
employee performance from a mediation point of view. In the study of Fonseca da Fonseca Da Costa
Guterresa et al. (2020) the mediating variable used is motivation. Not only using one mediating
variable, there is also research using 2 mediating variables, namely organizational identification and
work engagement (Buil et al., 2019).

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 Muhizan Tamimi, Sopiah; The influence of leadership style….

Research conducted by Buil et al. (2019) used the hypothesis of the influence of leadership style
on performance through organizational identification and work engagement partially and combined
the 2 mediating variables into one hypothesis.

Discussion
Leadership style is a variable that includes a variety of styles. Some of them are included as data in
this study such as transformational, autocratic, benevolent leadership styles, and so on. The leadership
style that is widely discussed in the literature reviewed is the transformational leadership style.
Transformational leadership style is a leadership style that identifies the changes needed, develops a
vision that will pave the way for changes to be made, and implements the necessary plans for these
changes to occur (Hasib et al., 2020).
In addition, each leadership style has various indicators. These indicators are used as a feature in
the variables to be studied. Indicators are also used as a basis for providing clues or markers. An
indicator serves to indicate the achievement of the desired thing. Indicators become a reference in
achieving the targets.
In general, indicators of leadership style relate to the following abilities, decision-making abilities,
motivational skills, communication skills, ability to control subordinates, ability to control emotions,
and responsibility.
Of the thirty (30) literature examined, there are forty-five (45) hypotheses related to leadership
style and employee performance. The results of this hypothesis will be grouped in the discussion.
There are twenty (20) data with positive and significant results from the influence of leadership style
on employee performance. Six (6) data say that leadership style and employee performance have no
effect. Fourteen (15) data present a mediating relationship between leadership style and employee
performance through mediating variables and some make leadership style a mediating variable and
four (4) data show that leadership style influences employee performance through moderating
variables.
Details are presented below:

a. Positive and significant influence

Positive influence means that there is a linear influence between leadership style and employee
performance. If the leadership style increases, the employee's performance also increases. Likewise
with the opposite, if the leadership style decreases or weakens, then employee performance decreases
as well. Significant is a condition where the influence can be said to be significant or meaningful.
There are twenty ( 20 ) hypotheses in nineteen (19) articles with the result that leadership style has a
positive and significant effect on employee productivity. The measurement of this effect is based on
the indicators of each variable.
The leadership style indicators used in the literature with a positive and significant influence on
employee performance can be explained from various aspects. Each organization has different aspects
as indicators in the leadership style variable. Arman et al. (2019)explain the aspects used are
charismatic, inspirational motivation, intellectual stimulation, and individual consideration.
In addition, Gomar Sinaga et al. (2018) explain the leadership style indicators used in their
research include charismatic, chivalrous, and intellectual have succeeded in creating and
communicating a new vision to realize company goals, paying consideration to the wants of
subordinates, adjusting subordinate objectives and leaders, bunches, and organizations and moving
followers to surpass the expected productivity. While in the performance aspect, the indicators used
are quantity of work, quality of work, knowledge about work, creativity, cooperation, awareness that
can be trusted, initiative, and personal quality (Gomar Sinaga et al., 2018; Tianingrum, 2021).
Slightly different from the previous Pawirosumarto, Sarjana, & Gunawan (2017); Pawirosumarto,
Sarjana, & Muchtar (2017) used encouraging and challenging the process, models of solving, easy
collaboration, and inspiration as indicators of leadership style in their research. Meanwhile, this
research uses four (4) performance indicators, namely understanding of knowledge, skill, expertise,
and behavior necessary to do a good job and a more extensive analysis of the attributes and behavior
of individuals.

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Turay et al. (2019) explained that if the leadership style score which includes interactive,
prioritizing, and tolerance aspects increases, the employee's performance also increases which
includes aspects of efficiency, quality, productivity, and timeliness. van Dorssen-Boog et al. (2021)
training on leadership style also affects employee performance.
Another factor that makes the influence of leadership style has a positive and significant effect on
performance because the applied leadership style is relevant to the state of the organization (Hadian
Nasab & Afshari, 2019; Kalsoom et al., 2018; Rita et al., 2018). Leadership in an organization needs
to develop staff and build a moral climate that results in high levels of performance, so leaders need to
think about an appropriate leadership style (Gu et al., 2020).
In addition, transformational leadership styles are considered to be able to inspire those who are
led and this type of leader is more concerned with common interests than personal interests
(Anselmann & Mulder, 2020; Buil et al., 2019). The magnanimity of the leadership needs to give
subordinates a sense of trust so that subordinates work harder and increase productivity (Purwanto,
2022; Roz, 2019).
Leaders are frequently seen as specialists of alter, since they play a critical part in coordinating
subordinates in making choices, caring for and paying consideration to subordinates, and making a
comfortable work environment (Fakhri et al., 2020). The results confirm the research hypothesis
testing which is consistent with the ambidexterity leadership theory for innovation as well as previous
research (Alghamdi, 2018; Ko & Kang, 2019).
Not only has a positive and significant influence, but also several of these articles show that
leadership style is the variable that most influences performance. This was revealed by (Erina, 2021)
who states that 75% of employee performance is influenced by leadership style.

b. Has no influence
There are six (6) hypotheses that explain the insignificant effect. This means that if there is an
increase or decrease in an aspect of leadership style, it will not affect any aspect of employee
performance. This was disclosed in a study by (Eliyana et al., 2019) which states that leadership style
does not affect performance either directly or indirectly.
Research by Fakhri et al. (2020); Supriyanto et al. (2020) show that leadership style has little
significance on employee performance. So it was concluded that leadership style does not influence
employee performance. According to H. et al. (2022) said that transformational leadership does not
affect performance because educational staff can operate independently and there is a clear work
schedule and standard operating procedures (Standard Operational Procedure).
Furthermore, Eliyana et al. (2019) add that the reason is that education personnel carry out the
same routine tasks so that transformational leadership does not affect their productivity. This may be
affected by a few variables, such as pioneers who pay less consideration to the characteristics of
Transformational Leadership and lack of implementation Hasib et al. (2020).
Razak et al. (2018) revealed that to overcome this ineffective leadership style, it is suggested to
encourage making strides in the application of transformational leadership styles, particularly in
making a conducive work air and continuously being reasonable in giving awards to employees who
have good performance.

c. Moderating variable
Moderating factors are factors that reinforce or debilitate the relationship between the dependent
variable and the independent variable. As far as the research conducted by the researcher is by the
data criteria in this literature review, there are four (4) pieces of data from three (3) pieces of literature
that relate leadership style and employee performance from a moderating point of view. The variables
of benevolent leadership and moral leadership were used to moderate the effect of the autocratic
leadership style on employee performance (Gu et al., 2020). Meanwhile, Wang & Guan (2018) use
the power gap as a moderating variable. In addition, Rita et al. (2018) also only use one (1) variable,
namely organizational leadership behavior.

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 Muhizan Tamimi, Sopiah; The influence of leadership style….

The research of Gu et al. (2020) is interesting to study because it uses two (2) moderating
variables. So we can compare which variables are more influential in moderating leadership style on
employee creativity. Employee creativity is one of the factors of employee performance. The results
show they ought to reexamine the prevailing negative see of authoritarian leadership, especially
around work results such as creativity. Leadership behavior to illustrate that the paternalistic
leadership measurements of benevolent and moral leadership act to decrease the negative impacts of
authoritarianism proposes the have to reevaluate paternalistic leadership.
Furthermore, there is an indirect effect of authoritarian leadership on employee performance
moderated by the power gap. Employees who believe that the leader should have a large level of
authority over subordinates are considered to have a high power distance, while employees who
believe that a lower level of authority should be considered to have a low power distance.
Lastly, Rita et al. (2018) use only one (1) moderating variable and show that organizational
citizenship behavior does not significantly moderate the effect of leadership style on employee
performance. Good leadership can affect employee performance but is not moderated by
organizational citizenship behavior. This means that organizational citizenship behavior does not
increase or decrease the influence of leadership styles on employee performance

d. Mediation variable
As far as the search conducted by the researcher is by the data criteria in the literature review,
Apart from being the independent and dependent variables, there are fifteen (15) pieces of literature
that relate leadership style and employee performance from a mediation point of view. In the study of
Fonseca Da Costa Guterresa et al. (2020) and Putra & Dewi (2019), the mediating variable used is
motivation.
According to Putra & Dewi (2019), work motivation is an inward quality that empowers workers
to realize individual and organizational objectives An successful and proficient administration fashion
can propel representatives so that workers can work superior which in turn can make strides in their
performance.
Eliyana et al. (2019) and Hadian Nasab & Afshari (2019) used organizational commitment as a
mediating variable or Z variable. Although they both use motivational variables, the two articles
produce different findings. The difference between the two lies in the leadership style used.
Transformational leadership style does not have an impact on employee performance if it is mediated
by organizational commitment. While authentic leadership style has a positive and significant effect
on employee performance with organizational commitment as a mediation. Authentic leaders enhance
EP by positively influencing their affective, normative, and sustainability engagement with the
organization.
Transformational leadership is used as the dependent variable on employee performance in the
research. The research of Buil et al. (2019) uses two (2) mediating variables, namely identification
and work engagement. While in the study of Layaman et al. (2021) used a proactive knowledge-
sharing variable. The results show that these three (3) variables mediate the effect of leadership style
on performance. Comparisons were made to determine the most powerful factor mediating the
influence of leadership style on performance between organizational identification and work
engagement.
The significant positive effect of the transformational leadership style on performance mediated by
collaborative human resource management indicates that companies will have many advantages if
they invest in leadership development programs, especially in the line of human resource
management. Human resource management is designed as a best practice for the provision and skills
for management to manage its human resources.
Another hand, Mira & Odeh (2019) used authentic leadership style as a mediating variable
between employee training style and performance. The findings of the study revealed that authentic
leadership mediates the relationship between employee training on employee performance. In line
with these results, job training affects employee performance mediated by job involvement.
Leadership style is also used as a moderating variable in Gomar's research. Gomar Sinaga et al.

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(2018) stated that transformational leadership mediates the effect of change management on employee
performance.
Spiritual and transformational leadership do not have a direct influence on employee performance.
However, the presence of media variables, namely leader-member exchange (LMX) and
organizational citizenship behavior (OCB) causes the effect to be significant.

CONCLUSION
Leadership style is a very broad variable. Research on the effect of leadership style on performance is
very diverse. Starting from the various leadership styles, and the various indicators used to the
mediating and moderating variables that contribute to increasing or decreasing influence. Leadership
style is an aspect of an organization that has a very important role in achieving organizational goals.
So the selection of a leadership style that is by local culture and wisdom needs to be considered.
Whether or not leadership style influences performance depends heavily on the suitability of the
leadership style used by an organization. This research can be developed by conducting a more
detailed grouping.

ACKNOWLEDGMENT
Thanks to my parents, Mr. H. Hadri and Mrs. Sahmin, and my uncle Parhanuddin, SH. who have paid
for mobility, Turn It In payments, publication fee and so on. Thanks also to Putri Galuh Ningtiaz who
has given us moral and material support until this article is ready to be submitted and published.

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