Dianta Waode NURANI, Samdin SAMDIN, Nasrul NASRUL, Endro SUKOTJO / Journal of Asian Finance, Economics and Business Vol 8 No 12 (2021) 0141–0151 141 141 Print ISSN: 2288-4637 / Online ISSN 2288-4645 doi:10.13106/jafeb.2021.vol8.no12.0141 The Effect of Leadership Style on Organizational Commitment and Employee Performance: An Empirical Study from Indonesia Dianta Waode NURANI 1 , Samdin SAMDIN 2 , Nasrul NASRUL 3 , Endro SUKOTJO 4 Received: August 15, 2021 Revised: October 23, 2021 Accepted: November 01, 2021 Abstract This study aims to: 1) analyze the effect of leadership style on job satisfaction and organizational commitment, 2) analyze the effect of leadership style, job satisfaction and organizational commitment on employee performance, 3) examine the indirect effect of leadership style on employee performance mediated by job satisfaction and organizational commitment. The population of this research is all employees who have structural positions totaling 95 respondents. The sample was selected using the census technique, resulting in a total of 95 respondents in the research sample. Methods of data collection was using a questionnaire. The research model is structural so that the research data is analyzed using SEM Smart PLS 2. Research results: 1) leadership style has a positive and significant effect on job satisfaction and organizational commitment, 2) leadership style, job satisfaction, and organizational commitment have a positive and significant effect on employee performance, 3) Job satisfaction and organizational commitment mediates the influence of leadership style on employee performance, and has a positive and significant effect. Indirect influence gives stronger results than direct influence. As a result, it is hoped that university leadership will use an effective leadership style and pay attention to employee work satisfaction and commitment to boost employee performance. Keywords: Leadership Style, Work Satisfaction, Organizational Commitment, Employee Performance JEL Classification Code: L31, M12, C30 morals, ideals, interests, and values (Pieterse et al., 2010). Employee performance can be influenced by responsible and inspirational leadership actions, according to DuBrin (2019), because leaders have interpersonal skills to communicate effectively and convincingly with followers and to develop strong bonds with them. Effective leadership applied by superiors is one of the most important things in improving the performance of their subordinates. Leaders have an important role in increasing employee and organizational productivity because they have the task of directing employees to achieve organizational goals (Raveendran & Gamage, 2018). With this, to strengthen organizational productivity, leaders’ ability needs to be developed sustainably and systematically. Organizations that want to increase productivity need to find ways to develop leaders to adopt appropriate leadership styles. According to Hersey and Blanchard (1988), efficient leaders behave according to their situation and know how to deal with the situation in their own way. The leadership style used is different for each employee depending on the style that is suitable for the employee and depending on the amount of direction, empowerment, and power in 1 First Author and Corresponding Author. Postgraduate Program, Halu Oleo University, Indonesia [Postal Address: Jl. R. Suprapto No. 190 E, Kendari, Southeast Sulawesi Province, 93115, Indonesia] Email: nuranidianta21@gmail.com 2 Lecturer. Postgraduate Program, Halu Oleo University, Indonesia. Email: samdin61@gmail.com 3 Lecturer. Postgraduate Program, Halu Oleo University, Indonesia. Email: nasrul_pdia@yahoo.com 4 Lecturer, Postgraduate Program, Halu Oleo University, Indonesia. Email: endrosukotjo@gmail.com © Copyright: The Author(s) This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. 1. Introduction Because the leader influences the emotions, attitudes, and conduct of employees, the success of service- oriented businesses is strongly dependent on the function of the leader (Terglav et al., 2016; Avolio et al., 2004). The leader’s task is to influence subordinates’ morals, ideals, interests, and values, motivating them to accomplish better than expected by changing their