The Influence of Leadership Style on Organizational Performance in Public Sector Institutions

Abstract

This study aims to examine the influence of leadership style on organizational performance in public sector institutions by integrating transformational, contingency, and New Public Management perspectives. A qualitative approach was employed using an embedded single-case study design, selected to capture the complexity of leadership practices within a real institutional context. The research was conducted at a public sector agency in East Java, Indonesia, chosen due to its ongoing administrative reforms and relevance to performance improvement initiatives. Data were collected from fifteen informants across hierarchical levels, including senior leaders, middle managers, and frontline employees, selected purposively based on their direct involvement in leadership and organizational processes. The findings reveal that organizational performance is enhanced through a hybrid leadership approach that combines transformational inspiration, transactional control, and performance-oriented management. Leadership effectiveness is found to be highly dependent on contextual alignment and institutional conditions. The study recommends that public sector leaders adopt adaptive leadership strategies and strengthen performance-based management systems to improve accountability and service delivery outcomes.