Quantitative analysis shows leadership enhances performance through innovation and organizational factors in Indonesia's energy sector.
The development of the energy industry in Indonesia plays a crucial role in supporting sustainable economic growth. PLTU Asam Asam, a coal-fired power plant located in South Kalimantan, faces various challenges, including operational efficiency, sustainability management, and organizational performance. This study aims to analyze the influence of organizational factors, innovation, and sustainability on performance, with leadership as a moderating variable. The research employs a quantitative approach using Structural Equation Modeling - Partial Least Squares (SEM-PLS) to examine the relationships between these variables. The findings indicate that organizational factors and innovation have a significant direct impact on performance, whereas sustainability does not directly influence performance. Additionally, leadership significantly moderates the relationship between organizational factors and innovation on performance, but does not moderate the effect of sustainability. These findings highlight the importance of effective leadership in enhancing organizational performance through innovation and structural improvements. This study contributes to the energy sector by providing insights into the role of leadership in optimizing organizational performance through innovation and sustainability strategies.
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Yugustama et al. (2025) studied this question.
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