ORGANIZATIONAL CULTURE, LEADERSHIP, AND ORGANIZATIONAL PERFORMANCE : SYSTEMATIC LITERATURE REVIEW
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Fuad Alfaridzi Setiawan(1*)
Master of Management Program, Faculty of Economics and Business, Universitas Negeri Malang
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Sopiah Sopiah(2)
Master of Management Program, Faculty of Economics and Business, Universitas Negeri Malang
(*) Corresponding Author
Keywords:
Organizational Culture, Leadership, Organizational Performance
Abstract
This study systematically reviews existing literature to examine how organizational culture and leadership style affect organizational performance. Adopting a descriptive design and qualitative approach, it compiles studies from multiple sources, particularly the Scopus database using the keywords “organizational culture, leadership, and organizational performance” for the period 2019–2024. The synthesis of 17 selected articles shows that a strong organizational culture combined with adaptive, effective, and responsive leadership substantially enhances employee engagement and productivity. The review further indicates that transformational and situational leadership styles are especially effective in aligning employees with organizational cultural values, thereby improving overall performance. Accordingly, the study argues that organizations that invest in a supportive culture and inclusive leadership are more likely to achieve superior performance outcomes, while also providing useful insights for practitioners and leaders in designing strategies to strengthen performance.
Keywords: Organizational Culture; Leadership; Organizational Performance
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References
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Siddique, C. M., Siddique, H. F., & Siddique, S. U. (2020). Linking authoritarian leadership to employee organizational embeddedness, LMX and performance in a high-power distance culture: a mediation-moderated analysis. Journal of Strategy and Management, 13(3), 393-411.
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Sindakis, S., Kitsios, F., Kamariotou, M., Aggarwal, S., & Cuervo, W. J. (2024). The effect of organizational culture and leadership on performance: A case of a subsidiary in Colombia. Journal of General Management, 49(2), 115-132.
Suifan, T. (2021). How innovativeness mediates the effects of organizational culture and leadership on performance. International Journal of Innovation Management, 25(02), 2150016.
Suleja, K. P., & Iqbal, Q. (2022). Leadership styles and sustainable performance: A systematic literature review. Journal of Cleaner Production, 382, 134600.
Tamimi, M., Soetjipto, B. E., Sopiah, S., & Kurniawan, D. T. (2022). Budaya organisasi dan kinerja karyawan: Systematic literature review. Husnayain Business Review, 2(2), 11–21.
Ahsan, M. J. (2024). Unlocking sustainable success: exploring the impact of transformational leadership, organizational culture, and CSR performance on financial performance in the Italian manufacturing sector. Social Responsibility Journal, 20(4), 783-803.
Alkhadra, W. A., Khawaldeh, S., & Aldehayyat, J. (2022). Relationship of ethical leadership, organizational culture, corporate social responsibility and organizational performance: a test of two mediation models. International Journal of Ethics and Systems, (ahead-of-print).
Al-Swidi, A. K., Gelaidan, H. M., & Saleh, R. M. (2021). The joint impact of green human resource management, leadership and organizational culture on employees’ green behaviour and organisational environmental performance. Journal of cleaner production, 316, 128112.
Bomm, E., De Montreuil Carmona, L. J., & Gomes, G. (2023). Unravelling t-KIBS performance: leadership, organisational culture, and learning as boosters of service innovation. Knowledge Management Research & Practice, 21(5), 994-1007.
Demir, T., Reddick, C. G., & Perlman, B. J. (2023). Ethical performance in local governments: An empirical study of organizational leadership and ethics culture. The American Review of Public Administration, 53(5-6), 209-223.
Fauzi, Y., Wardi, Y., & Thaib, I. (2023). Gaya kepemimpinan terhadap motivasi kerja karyawan: Systematic literature review. Journal of Economic, Management, Accounting and Technology (JEMATech), 6(2), 156–165.
Ferine, K. F., Aditia, R., & Rahmadana, M. F. (2021). An empirical study of leadership, organizational culture, conflict, and work ethic in determining work performance in Indonesia's education authority. Heliyon, 7(7).
Garengo, P., & Betto, F. (2024). The role of organisational culture and leadership style in performance measurement and management: a longitudinal case study. Production planning & control, 35(2), 151-169.
Golden III, J. H., & Shriner, M. (2019). Examining relationships between transformational leadership and employee creative performance: The moderator effects of organizational culture. The Journal of Creative Behavior, 53(3), 363-376.
Istikhola, Y., & Gunawan, A. (2023). Mengeksplorasi pengaruh kekuatan budaya organisasi terhadap kinerja organisasi: Studi literasi. Global: Jurnal Lentera BITEP, 1(3), 103-110.
Juliana, C., Gani, L., & Jermias, J. (2021). Performance implications of misalignment among business strategy, leadership style, organizational culture and management accounting systems. International Journal of Ethics and Systems, 37(4), 509-525.
Khaddage-Soboh, N., Yunis, M., Imran, M., & Zeb, F. (2024). Sustainable practices in Malaysian manufacturing: The influence of CSR, transformational leadership, and green organizational culture on environmental performance. Economic Analysis and Policy.
Lee, J. Y., Kim, S., Noh, S., Jang, S. H., & Lee, S. Y. (2024). Paradoxical organizational culture, authoritarian leadership, and international firm performance: evidence from international firms in China. Journal of International Management, 30(1), 101117.
Mandasari, D. A., & Safrizal, H. B. A. (2023). Budaya kerja dan gaya kepemimpinan: Literature review. Jurnal Jumbiwira, 2(2), 115–132.
Melisa, T., & Subarto. (2021). Pengaruh gaya kepemimpinan dan budaya organisasi terhadap kinerja karyawan pada PT Bank Syariah Mandiri Area Tangerang. Jurnal PERKUSI, 1(1), 22–26.
Meng, J., & Berger, B. K. (2019). The impact of organizational culture and leadership performance on PR professionals’ job satisfaction: Testing the joint mediating effects of engagement and trust. Public Relations Review, 45(1), 64-75.
Nguyen, N. P., Hang, N. T. T., Hiep, N., & Flynn, O. (2023). Does transformational leadership influence organisational culture and organisational performance: Empirical evidence from an emerging country. IIMB Management Review, 35(4), 382-392.
Puspita, M., & Maylazahira, D. (2023). Systematic literature review: Pengembangan budaya organisasi dan kepemimpinan yang ideal bagi karyawan generasi milenial. Economics Professional in Action (E Profit), 5(1), 8–20.
Rotjanakorn, A., Sadangharn, P., & Na-Nan, K. (2020). Development of dynamic capabilities for automotive industry performance under disruptive innovation. Journal of Open Innovation: Technology, Market, and Complexity, 6(97), 1–20.
Shin, J., Mollah, M. A., & Choi, J. (2023). Sustainability and organizational performance in South Korea: The effect of digital leadership on digital culture and employees’ digital capabilities. Sustainability, 15(3), 2027.
Siddique, C. M., Siddique, H. F., & Siddique, S. U. (2020). Linking authoritarian leadership to employee organizational embeddedness, LMX and performance in a high-power distance culture: a mediation-moderated analysis. Journal of Strategy and Management, 13(3), 393-411.
Sinaga, L. M. (2021). Budaya organisasi, gaya kepemimpinan dan kompensasi terhadap kinerja pegawai melalui kepuasan kerja. Jurnal Riset Manajemen dan Bisnis, 6(2), 6
Sindakis, S., Kitsios, F., Kamariotou, M., Aggarwal, S., & Cuervo, W. J. (2024). The effect of organizational culture and leadership on performance: A case of a subsidiary in Colombia. Journal of General Management, 49(2), 115-132.
Suifan, T. (2021). How innovativeness mediates the effects of organizational culture and leadership on performance. International Journal of Innovation Management, 25(02), 2150016.
Suleja, K. P., & Iqbal, Q. (2022). Leadership styles and sustainable performance: A systematic literature review. Journal of Cleaner Production, 382, 134600.
Tamimi, M., Soetjipto, B. E., Sopiah, S., & Kurniawan, D. T. (2022). Budaya organisasi dan kinerja karyawan: Systematic literature review. Husnayain Business Review, 2(2), 11–21.
Published
2026-03-04
How to Cite
Setiawan, F., & Sopiah, S. (2026). ORGANIZATIONAL CULTURE, LEADERSHIP, AND ORGANIZATIONAL PERFORMANCE : SYSTEMATIC LITERATURE REVIEW. Journal of Management : Small and Medium Enterprises (SMEs), 19(1), 321-333. https://doi.org/10.35508/jom.v19i1.16023
Section
Articles
