Unlocking Performance in the Public Sector: Transformational Leadership, Work Environment, and the Mediating Role of Motivation

Abstract

This study examines the influence of transformational leadership and work environment on employee performance, with work motivation as a mediating variable, among civil servants at the Yogyakarta Special Region Transportation Agency. Employing a quantitative explanatory design, data were collected from 78 respondents through structured questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that transformational leadership and work environment exert significant positive direct effects on both employee performance and work motivation. Work motivation similarly demonstrates a significant positive influence on performance. Importantly, motivation partially mediates the relationship between work environment and performance, while fully mediating the relationship between transformational leadership and performance. These results enrich Attribution Theory by demonstrating that external organizational factors shape internal motivational attributions, ultimately determining behavioral outcomes. The study contributes theoretical advancements in public sector human resource management and offers practical recommendations for organizational improvement, including revitalizing workplace infrastructure, strengthening leadership coaching programs, and implementing transparent reward systems. Despite limitations related to cross-sectional design and sample scope, the findings provide a robust foundation for evidence-based policy development in Indonesian local government settings.