The Influence of Transformational Leadership Style on Employee Performance through Job Satisfaction Mediation in Digital Startup Companies

Abstract

This study explores the influence of transformational leadership on employee performance, specifically examining the mediating role of job satisfaction within digital startup companies. Using a qualitative methodology through a comprehensive literature review, the study synthesizes findings from ten relevant articles that address the intersection of transformational leadership, employee performance, and job satisfaction. The research highlights that transformational leadership is a critical factor in enhancing employee performance, particularly in dynamic and innovative environments such as digital startups. Moreover, job satisfaction is identified as a key mediator in the leadership-performance relationship, where employees who experience higher satisfaction tend to perform better. The findings also emphasize the importance of fostering creativity and innovation, which are essential for startups striving to succeed in competitive digital markets. The study contributes to existing leadership theories by demonstrating how transformational leadership can drive performance through the enhancement of job satisfaction, especially in the context of organizations undergoing digital transformation. Finally, the paper discusses the implications of these findings for digital startups, recommending that leaders adopt transformational leadership practices that not only motivate employees but also create an environment that supports job satisfaction and innovation. This research serves as a foundation for future studies on leadership in digital startups, encouraging further exploration of contextual factors that may influence the effectiveness of leadership practices.