The influence of transformational leadership on employee performance through dynamic capability and organizational learning

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The role of HR has evolved from administrative tasks to a strategic partner that helps achieve organizational goals. Employee performance is a key factor for organizational success, influenced by leadership styles such as transformational leadership. In a competitive and dynamic business environment, dynamic capabilities and organizational learning are essential for enhancing employee performance. Purpose: This study explores the connections between Transformational Leadership, Dynamic Capability, Organizational Learning, and Employee Performance. It also investigates the link between Transformational Leadership and Employee Performance, mediated by Dynamic Capability and Organizational Learning. Methods This research adopts an explanatory approach to elucidate the cause-effect relationships among variables. The study population includes all employees, ranging from staff to directors, at PT. Pertamina Lubricants spans its headquarters, sales regions, and production units in Indonesia. A sample size of 156 individuals was utilised for analysis. Structural Equation Modeling using the SmartPLS method was employed for data analysis. Result The findings suggest that Transformational Leadership has a significant and positive impact on Dynamic Capability and Organizational Learning. However, Transformational Leadership has a non-significant and Employee Performance. Additionally, Dynamic Capability and Organizational Learning significantly and positively influence Employee Performance. Conclusion The study highlights the critical role of Dynamic Capability and Organizational Learning in enhancing Employee Performance. While Transformational Leadership positively influences organizational processes, its direct impact on Employee Performance is minimal, indicating that dynamic capabilities and organizational learning serve as vital mediators in the leadership-performance relationship. 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F1000Research 2025, 14 :784 ( https://doi.org/10.12688/f1000research.166062.1 ) NOTE: If applicable, it is important to ensure the information in square brackets after the title is included in all citations of this article. Close Copy Citation Details Export Export Citation Sciwheel EndNote Ref. Manager Bibtex ProCite Sente EXPORT Select a format first Track Share ▬ ✚ Research Article The influence of transformational leadership on employee performance through dynamic capability and organizational learning [version 1; peer review: 1 approved] F Harianto Wibowo https://orcid.org/0009-0006-8708-8157 1 , Umar Nimran 1 , Kadarisman Hidayat 1 , Arik Prasetya 1 F Harianto Wibowo https://orcid.org/0009-0006-8708-8157 1 , Umar Nimran 1 , Kadarisman Hidayat 1 , Arik Prasetya 1 PUBLISHED 12 Aug 2025 Author details Author details 1 Brawijaya University, Malang, East Java, Indonesia F Harianto Wibowo Roles: Conceptualization, Data Curation, Formal Analysis, Investigation, Methodology, Resources, Software, Validation, Writing – Original Draft Preparation Umar Nimran Roles: Conceptualization, Formal Analysis, Methodology, Resources, Validation, Writing – Review & Editing Kadarisman Hidayat Roles: Conceptualization, Formal Analysis, Methodology, Resources, Validation, Writing – Review & Editing Arik Prasetya Roles: Conceptualization, Formal Analysis, Methodology, Resources, Validation, Writing – Review & Editing OPEN PEER REVIEW DETAILS REVIEWER STATUS Abstract Background Human Resources (HR) has become one of the crucial factors in organizations. The role of HR has evolved from administrative tasks to a strategic partner that helps achieve organizational goals. Employee performance is a key factor for organizational success, influenced by leadership styles such as transformational leadership. In a competitive and dynamic business environment, dynamic capabilities and organizational learning are essential for enhancing employee performance. Purpose: This study explores the connections between Transformational Leadership, Dynamic Capability, Organizational Learning, and Employee Performance. It also investigates the link between Transformational Leadership and Employee Performance, mediated by Dynamic Capability and Organizational Learning. Methods This research adopts an explanatory approach to elucidate the cause-effect relationships among variables. The study population includes all employees, ranging from staff to directors, at PT. Pertamina Lubricants spans its headquarters, sales regions, and production units in Indonesia. A sample size of 156 individuals was utilised for analysis. Structural Equation Modeling using the SmartPLS method was employed for data analysis. Result The findings suggest that Transformational Leadership has a significant and positive impact on Dynamic Capability and Organizational Learning. However, Transformational Leadership has a non-significant and Employee Performance. Additionally, Dynamic Capability and Organizational Learning significantly and positively influence Employee Performance. Conclusion The study highlights the critical role of Dynamic Capability and Organizational Learning in enhancing Employee Performance. While Transformational Leadership positively influences organizational processes, its direct impact on Employee Performance is minimal, indicating that dynamic capabilities and organizational learning serve as vital mediators in the leadership-performance relationship. READ ALL READ LESS Keywords Transformational Leadership, Dynamic Capability, Organizational Learning, Employee Performance Corresponding Author(s) F Harianto Wibowo ( [email protected] ) Close Corresponding author: F Harianto Wibowo Competing interests: No competing interests were disclosed. Grant information: The author(s) declared that no grants were involved in supporting this work. Copyright: © 2025 Wibowo FH et al . This is an open access article distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. How to cite: Wibowo FH, Nimran U, Hidayat K and Prasetya A. The influence of transformational leadership on employee performance through dynamic capability and organizational learning [version 1; peer review: 1 approved] . F1000Research 2025, 14 :784 ( https://doi.org/10.12688/f1000research.166062.1 ) First published: 12 Aug 2025, 14 :784 ( https://doi.org/10.12688/f1000research.166062.1 ) Latest published: 12 Aug 2025, 14 :784 ( https://doi.org/10.12688/f1000research.166062.1 ) 1. Introduction Human Resources (HR) has become one of the crucial factors in an organisation. 1 Armstrong 2 argues that the key to creating an inclusive work culture, supporting employee development, and addressing the complex dynamics in the global business environment lies in Human Resources (HR). In modern organisations, the role of HR has undergone significant transformation from merely handling administrative tasks to becoming a strategic partner that helps achieve organizational goals. The human resources expected by organisations are individuals with the enthusiasm and willingness to work hard by optimising all their abilities. 3 This indicates that individual performance is crucial in the organizational context. Performance is the target that organisations must achieve, and every effort must be executed well. 4 However, performance is not determined by the actions but by assessment and evaluative processes. Furthermore, employee performance refers to the outcomes of various behaviours that occur over a specific period, which can differ between individuals or behaviours performed by the same individual at different times. These behaviours are measured based on their contribution to organizational effectiveness. 5 Many factors can influence employee performance. According to Manzoor et al., 6 transformational leadership style significantly impacts employee performance. This is consistent with the research by Bisharat et al., 7 which states that transformational leadership style influences the development of employee performance. Transformational leadership can be defined as a leadership style in which a leader works with a team to identify necessary changes, creates a vision to guide change through inspiration, and implements change alongside committed members of a group. 8 On the other hand, an organisation must adapt to a competitive and dynamic business environment. According to Zhou et al., 9 accelerated technological changes, shorter product life cycles, globalisation, and increasingly blurred industry boundaries create a more dynamic business environment. Management often faces challenges in managing complex changes, including predicting and responding to changes in employee behaviour and performance, making dynamic capability necessary for organisations. 10 The accelerating pace of change also drives employees to adapt to current and future changes. Therefore, organisations must build dynamic capabilities to adapt to change. 11 Dynamic capabilities enable organisations to align their employees with the constantly changing environmental conditions by enhancing their resources and employee performance. 12 Implementing organizational learning can also improve employee performance. 13 This is consistent with Senge’s 14 assertion that to achieve optimal employee performance, organisations must support and motivate their members by continuously adapting and developing personal capabilities and team learning. Organizational learning is a process where organisations collectively learn to improve their overall performance. 14 Organizational learning aims to create, acquire, and transfer knowledge within the organisation. 15 Organisations that can learn quickly and effectively will become more adaptive and resilient in facing challenges and changes in the business environment. According to Senge, 14 in the context of employee performance, organizational learning significantly impacts individual performance. By creating a learning culture that encourages collaboration, reflection, and knowledge sharing, organisations provide opportunities for employees to continue learning and developing their skills. Therefore, organizational learning is a fundamental foundation for improving individual and overall organizational performance. Based on the above explanation, a study was conducted to determine the influence of transformational leadership, dynamic capabilities, and organizational learning on employee performance. This research also aims to investigate the effect of transformational leadership on employee performance mediated by dynamic capabilities and organizational learning. 2. Literature review 2.1 Employee performance The calibre of an organisation’s employees determines how well it can deliver services. 16 According to Kasmir, 17 performance is the outcome of a person’s job and work behaviour throughout an interval, often one year. It can be assessed regarding productivity inside the organisation, work efficiency and quality, and service delivery. Bernardin and Russell 18 view performance as an outcome record produced by a particular task or activity within a given time frame. An individual’s performance reflects their capacity to accomplish assigned tasks based on their skills, experience, dedication, and the amount of time they can devote. 19 Employees in an organization are recruited to perform particular duties that contribute to the achievement of the company’s stated goals. 19 Organisations continue to design training activities and look out for employee behaviours that could be tapped into to improve their performance. 20 Employee job performance information becomes helpful in organisations in terms of performance appraisal, feedback, promotions, and merit pay systems. 21 Employee performance, a focal industrial/organizational psychology theory, is arduous to define or measure due to different or multiple aspects of job-role behaviour assessments. In some contexts, it is referred to as task or in-role performance relating exclusively to completing tasks specified in job descriptions. 22 Others, like Mathias & Jackson 23 and Bohlander et al., 24 conceptualise employee performance as the employee’s acumen to accomplish work goals, fulfil expectations, and meet job targets. Though many definitions have been proposed for employee performance, the study adopts Viswesvaran & Ones 21 definition of performance as scalable actions, behavior and outcomes that employees engage in or bring about that is linked with and contribute to organizational goals. Employee performance denotes the overall financial or non-financial outcome of an employee’s actions directly impacting the organisation’s performance and success. 25 In organizational contexts, performance is commonly defined as how an organizational member (employee) contributes to achieving the organisation’s goals. 26 It results from fulfilling assigned responsibilities, meeting deadlines, demonstrating competency, and exhibiting effectiveness and efficiency in work execution. 27 Scholars have identified three dimensions of employee performance: task performance, contextual performance, and adaptive performance. 28 Task performance concerns the fundamental job responsibilities of workers and is often referred to as “in-role prescribed behaviour”. 29 On the other hand, adaptive performance pertains to how an individual employee adjusts to changes in the job role or work environment. 27 In addition to task and adaptive performance, attention has been directed towards understanding the significance of non-job performance components for enhancing the workplace. Scholars have defined this as contextual performance, encompassing voluntary employee actions that provide intangible benefits to businesses. 27 , 30 2.2 Transformational leadership According to Bass, 31 transformational leadership has a more positive impact on performance than transactional leadership. Leaders who employ a transformational style tend to possess charisma, inspire others, and stimulate intellectual engagement among their subordinates. Moreover, numerous studies indicate that Transformational Leadership is strongly associated with improved performance and demonstrate that transformational leadership behaviours positively contribute to subordinates’ effectiveness in various organizational contexts. Downton 32 introduced the term Transformational Leadership, which was further developed by 33 in his work “Leadership”. Burns sought to link leadership roles with their followers, highlighting the crucial aspects of this relationship. The Transformational Leadership approach encompasses various dimensions of the leadership process, where leaders empower and motivate their followers to embrace change. Transformational leaders create an environment where employees feel encouraged to actively participate, engage in open discussions, and take the initiative to try new things. Avolio & Gibbons 34 emphasised that Transformational Leaders exhibit strong moral values, have a clear identity, and can build trust and collaboration with others. Leadership style can predict organizational performance. 6 This is one of the most essential aspects influencing organizational and employee performance. 7 Leadership can influence performance because leadership is the primary determinant of the success or failure of an organisation, group, and even a nation. 35 The organisation is inclined to focus on leadership since it is considered a technique for improving performance and handling impulsive situations. 36 Manzoor et al. 6 conducted a study on Small and Medium Enterprises (SMEs) in Pakistan with 130 respondents. The results showed that transformational leadership has a positive impact on employee performance. Mahmoud 37 indicated that the transformational leadership style positively and significantly affects employees’ job performance. These previous studies suggest that transformational leadership is vital to employee performance. Thus, the following hypothesis is formulated. H1: Transformational Leadership has a significant impact on Employee Performance 2.3 Dynamic capability The dynamic capabilities approach seeks to comprehend and elucidate firms’ competitive advantage over time. 38 Dynamic capabilities are defined as a firm’s capacity to modify its resource base to adapt to rapidly evolving environments. 39 It has been posited that dynamic capabilities encompass the ability to maintain successful adaptations. 40 These capabilities are inherently tied to the firm and evolve, 41 making them challenging to observe and even more arduous for other organisations to replicate. Consequently, they are closely associated with sustaining competitive advantage, particularly in environments of constant change. Barreto 42 characterises dynamic capability as the inherent capacity of a firm to effectively address challenges, which is cultivated through its ability to detect opportunities and risks, make timely decisions aligned with market demands, and adapt its resource portfolio. Similarly, Teece 39 outlines three key dynamic capabilities: (1) the ability to sense and influence opportunities and threats, (2) the capacity to seize on opportunities, and (3) the maintenance of competitiveness by enhancing, integrating, protecting, and, if needed, reorganising the company’s tangible and intangible assets. Lopez-Cabrales et al. 43 researched managers in 107 industrial firms. The study indicates that implementing effective transformational leadership will produce more dynamic capability. Similar findings were also obtained by Wamalwa. 44 Transformational leaders encourage individual and collective learning by intellectually stimulating and guiding followers to adopt fresh viewpoints, challenge assumptions, foster curiosity, take calculated risks, and devise innovative problem-solving approaches. 45 These previous studies suggest that transformational leadership is essential in dynamic capability. The study conducted by Bienkowska and Tworek 46 aimed to fill the research gap by developing the concept of Employees’ Dynamic Capabilities (EDC) and testing its impact on Employee Performance. The results of this study indicate that EDC can be a prerequisite for sustainable organizational development through employees. Meanwhile, the findings of Tworek et al. 47 have the potential to support the development of new models and theories that explain the relationship between EDC, job performance, and organizational performance in crisis contexts. H2: Transformational Leadership has a significant impact on Dynamic Capability H4: Dynamic Capability has a significant impact on Employee Performance 2.4 Organizational learning According to Senge, 14 there are three classic theories of organizational learning: 1) the theory of experiential learning from the “cognitive” tradition; 2) the theory of adaptive and generative learning, also from the “cognitive” tradition; and 3) the theory of assimilation from the “behavioural” tradition. Among these three theories, the Adaptive and Generative Learning theory is critical as it is a continuous improvement process. The main characteristic of this theory is its focus on existing knowledge and the ability to transform it through new thinking to achieve goals. Organizational learning is a process whereby organisations systematically enhance and integrate individuals’ knowledge into the organizational knowledge system. This process occurs through interactions within communities where knowledge is created by the organisation, evolving in the continuous dynamics between tacit and explicit knowledge, making organizational learning a vital necessity. 48 According to García-morales et al. 49 and Dibella et al., 50 organizational learning is the organisation’s ability to maintain or improve performance based on experience. Organizational learning is influenced by internal and external factors: organizational structure, culture, leadership, knowledge sharing, internal work environment, external networks, and organizational members’ experiences. 51 Mutahar et al. 52 analysed the relationship between transformational leadership and organizational performance mediated by organizational learning. The study showed a strong relationship between transformational leadership and organizational performance. The research findings also indicated a positive correlation between transformational leadership and organizational learning, supported by other studies. 49 , 53 The greater the influence of transformational leaders, the more organizational learning occurs. Nam and Park 54 conducted previous research on organizational learning’s influence on employee performance. The research findings indicate that the aspect of organizational learning culture has a positive impact on transformational leadership and employee performance. Furthermore, it was also found that Cultural Intelligence has a positive relationship with transformational leadership and employee performance. Moreover, the research results confirm that transformational leadership positively influences employee performance. These findings support Kelman’s theory of social influence processes in an organizational context. The research results by Kumar & Singh 55 are consistent with the study conducted by Nam & Park, 54 which revealed that organizational learning positively impacts Employee Performance. H3: Transformational Leadership has a significant impact on Organizational Learning H5: Organizational Learning has a significant impact on Employee Performance 3. Methodology 3.1 Participants and procedure This study falls under explanatory research, seeking to elucidate the causal connections between independent variables (exogenous variables) and dependent variables (variables subjected to hypothesis testing). 56 Through data analysis, this research is categorised as quantitative, employing inductive and descriptive statistics to analyse sample data and draw generalisations. 57 The examined variables encompass Transformational Leadership, Dynamic Capability, Organizational Learning, and Employee Performance. 3.2 Questionaire development and instrument The research targets all staff members, including directors, at PT. Pertamina Lubricants is located in various areas, such as the headquarters, sales regions, and production units across Indonesia, totalling 388 individuals. A sample size of 197 respondents was selected from this population. These respondents are chosen from 11 distinct zones, encompassing the headquarters, three production units, and seven sales regions distributed throughout Indonesia. 3.3 Research model The gathered data underwent analysis using the Structural Equation Modeling (SEM) technique and the SmartPLS approach. This method thoroughly explores intricate interrelations between variables, enabling researchers to evaluate direct and indirect effects within a single model. This study’s structural model and hypotheses are depicted in Figure 1 below. Figure 1. Research hypothesis model. Source: Authors Work. 4. Result This research uses first-order Structural Equation Modeling (SEM) analysis to scrutinise the model and assess the research hypotheses. This segment introduces two analytical frameworks: the Measurement Model (Outer Model) and the Structural Model (Inner Model). 4.1 Measurement Model (Outer Model) When examining the measurement model, researchers can explore the connections between latent variables and their associated indicators, as Hair et al. 57 outlines. The evaluation of the Outer Model, conducted using SmartPLS for data analysis, follows four crucial criteria: Outer Loading, Average Variance Extracted, Cronbach’s Alpha, and Composite Reliability. The subsequent Table 1 illustrates the outcomes of the Outer Model assessment, highlighting Convergent Validity, Construct Validity, Cronbach’s Alpha, and Composite Reliability. The model is deemed valid if it achieves an Average Variance Extracted (AVE) > 0.50, and it is considered reliable if it attains Composite Reliability > 0.70 and Cronbach’s Alpha > 0.60. 58 Table 1. Outer Model results. Variable Indicator Outer loading Cronbach's Alpha AVE Composite reliability Transformational Leadership Idealism Influence 0.833 0.816 0.645 0.879 Inspirational Motivation 0.802 Intellectual Stimulation 0.762 Individual Consideration 0.814 Dynamic Capability Sensing 0.823 0.758 0.675 0.861 Seizing 0.854 Reconfiguration 0.786 Organizational Learning Continuous Learning 0.756 0.884 0.590 0.910 Inquiry/Dialog 0.752 Team Learning 0.746 Embedded System 0.817 Empowerment 0.765 System Connection 0.760 Strategic Leadership 0.778 Employee Performance Task Suitability 0.811 0.772 0.687 0.868 Responsibility 0.853 Productivity 0.822 Table 1 summarises that all the indicators utilised to evaluate the constructs in this research, such as Transformational Leadership, Dynamic Capability, Organizational Learning, and Employee Performance, exhibit desirable characteristics. The indicators for these constructs display outer loading values surpassing 0.5, confirming their validity and effectively passing the convergent validity assessment. Additionally, the table illustrates that each variable possesses an AVE (Average Variance Extracted) exceeding 0.5, confirming their validity. Consequently, it can be inferred that each of these indicators substantially contributes to explaining the respective latent construct, satisfying the criteria for construct validity. Additional information from the table indicates that Cronbach’s Alpha values for Transformational Leadership, Dynamic Capability, Organizational Learning, and Employee Performance surpass 0.6. These results confirm the reliability of these variables for further data analysis. Furthermore, all variables in the table exhibit a composite reliability value exceeding 0.7, indicating their reliability. Thus, it can be inferred that the indicators within the latent variables demonstrate strong reliability. 4.2 Structural Model (Inner Model) During the structural model analysis phase, the research hypotheses are thoroughly examined. The inner model depicts the latent variables’ interrelations, including recursive and non-recursive connections. Conversely, the structural model elucidates the relationships between the variables being studied. The coefficients within the model gauge the strength and direction (positive or negative) of the associations between each variable. Significant impacts between two variables are noted if the p-value is less than 0.05. The ensuing table, denoted as Table 2 , provides the findings about the direct effects: Table 2. Direct effect results. Hypothesis Direct effect Path coefficient P value Description H1 Transformational Leadership ➔ Employee Performance 0.041 0.304 Not Supported H2 Transformational Leadership ➔ Dynamic Capability 0.234 0.001 Supported H3 Transformational Leadership ➔ Organizational Learning 0.445 <0.001 Supported H4 Dynamic Capability ➔ Employee Performance 0.265 <0.001 Supported H5 Organizational Learning ➔ Employee Performance 0.403 <0.001 Supported The SEM analysis results on the 5 research hypotheses show that 4 hypotheses are supported and 1 hypothesis is not supported. Hypothesis 1 shows that transformational leadership has a non-significant effect on employee performance with a p-value of 0.304. Next, in Hypothesis 2, it is found that transformational leadership has a significant positive effect on dynamic capability with a p-value of 0.001 and a path coefficient of 0.234. Hypothesis 3 is also supported, indicating that transformational leadership significantly and positively affects organizational learning with a p-value of <0.001 and a path coefficient of 0.445. In Hypothesis 4, dynamic capability has a significant positive effect on employee performance because the p-value is <0.001 with a path coefficient of 0.265. Meanwhile, Hypothesis 5 shows that organizational learning has a significant positive effect on employee performance with a p-value of <0.001 and a path coefficient of 0.403. Aside from examining direct impacts, we also evaluated indirect effects or mediation using SmartPLS software, with the outcomes displayed in the following table (refer to Table 3 ). Table 3. Mediating effect/indirect effect results. Independent Mediation Dependent Path coefficient P Value Description Transformational Leadership Dynamic Capability Employee Performance 0.080 0.076 Not Supported Organizational Learning 0.151 0.003 Supported Table 3 above reveals that dynamic capability does not mediate the effect of transformational leadership on employee performance. On the other side, organizational learning can mediate the effect of transformational leadership on employee performance. This suggests that Organizational Learning is the only intermediary between Transformational Leadership and Employee Performance in this study. 5. Discussion The research was conducted at PT. Pertamina Lubricants, with employees from staff level to company directors as respondents. In the research conducted at PT. Pertamina Lubricants, the results show that transformational leadership significantly and positively influences employee performance. This indicates that transformational leadership, characterised by the ability to inspire, motivate, and develop subordinates, contributes positively to achieving better performance across all levels of employees, from staff to company directors. Transformational leadership makes employees feel more motivated, more committed to organizational goals, and more engaged in achieving desired outcomes. Transformational leadership does not significantly influence employee performance directly. This finding suggests that while transformational leaders may inspire and motivate employees, these effects alone are not enough to improve performance metrics without additional supportive factors. Employees may feel more committed and satisfied, but these feelings do not always translate into measurable performance improvements. This aligns with the research by Eliyana & Ma’arif, 59 which also found that transformational leadership did not have a direct impact on employee performance. Instead, the influence of transformational leadership on performance may be mediated by other variables such as organizational commitment or job satisfaction. Besides showing an insignificant impact on employee performance, the research findings also highlight the crucial role of transformational leadership in shaping dynamic capability and organizational learning at PT. Pertamina Lubricants. Transformational leadership is pivotal in fostering organizational dynamic capabilities and learning processes. By practising a progressive and innovative leadership style, leaders in the company can stimulate creativity, innovation, and adaptability across all organizational levels. This enables the company to respond more to environmental changes and develop the necessary capabilities to tackle complex and dynamic business challenges. Next, the study confirms a significant positive relationship between dynamic capability and organizational learning with employee performance at PT. Pertamina Lubricants. Dynamic capability refers to the company’s ability to recognise, respond to, and capitalise on rapidly changing business opportunities and challenges. This means that with dynamic solid capability, the company can be more responsive to changes in the business environment, enabling it to take necessary steps to remain competitive and even excel in a rapidly changing market. Furthermore, the importance of organizational learning processes is also evident in enhancing employee performance. Organizational learning, which encompasses acquiring, storing, and disseminating knowledge and experience, is critical in strengthening the company’s capacity to adapt and grow. Employees can develop the skills, knowledge, and competencies needed to achieve organizational goals through effective learning processes. This contributes to improving both individual and overall company performance. By strengthening dynamic capability and organizational learning processes, PT. Pertamina Lubricants can create a work environment that supports growth, innovation, and superior performance. In a competitive and rapidly changing market, learning and adapting are vital to maintaining a competitive edge and achieving long-term success. Therefore, investment in developing dynamic capability and organizational learning processes is crucial for the company to remain relevant and thriving in today’s dynamic business environment. 6. Conclusions & Recommendations Based on the results of this study, it can be concluded that at PT. Pertamina Lubricants, dynamic capability and organizational learning significantly positively impact employee performance, but not with transformational leadership. These findings underscore the importance of creating a work environment that enables the development of dynamic capabilities and effective organizational learning. By strengthening these elements, the company can enhance employee performance and address challenges in the competitive market. Furthermore, the results of this study highlight the importance of investing in human resource development and organizational capability as a strategy to improve the company’s competitiveness by enhancing dynamic capabilities and fostering effective organizational learning, PT. Pertamina Lubricants can create sustainable competitive advantages in the ever-changing market. Recommendations for the company based on these findings are to strengthen dynamic capabilities and promote sustainable organizational learning. This can be achieved through employee training and development, implementing management practices that support innovation, and creating an organizational culture that fosters learning and growth. Thus, the company can strengthen its position in the market and achieve long-term success. Ethical approval This study received ethical approval from the Faculty of Administrative Sciences, Universitas Brawijaya, with the approval number: 01103/UN10.F0301/B/PP/2024. Consent for participation Written informed consent was obtained from all respondents through the questionnaire. The participants were informed about the purpose of the study, and their confidentiality and anonymity were strictly maintained throughout the research process. Data availability statement Underlying data Figshare: Dataset Transformational Leadership, Employee Performance, Dynamic Capability And Organizational Learning: https://doi.org/10.6084/m9.figshare.29153240 . 60 The project contains the following underlying data: • Dataset Transformational Leadership_Employee Performance_ Dynamic Capability And Organizational Learning (The dataset for this research) • Details of the variables (List of variables and indicators used in this study) Data are available under the terms of the Creative Commons Attribution 4.0 International license (CC-BY 4.0). References 1. Cardon MS, Stevens CE: Managing human resources in small organizations: What do we know? Hum. Resour. Manag. Rev. 2004; 14 : 295–323. Publisher Full Text 2. Armstrong MA: A Handbook of Human Resources Management. 11th ed.London: Kogan Page; 2009. 3. Harris LC, Ogbonna E: Strategic human resource management, market orientation, and organizational performance. J. Bus. 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Comments on this article Comments (0) Version 1 VERSION 1 PUBLISHED 12 Aug 2025 ADD YOUR COMMENT Comment Author details Author details 1 Brawijaya University, Malang, East Java, Indonesia F Harianto Wibowo Roles: Conceptualization, Data Curation, Formal Analysis, Investigation, Methodology, Resources, Software, Validation, Writing – Original Draft Preparation Umar Nimran Roles: Conceptualization, Formal Analysis, Methodology, Resources, Validation, Writing – Review & Editing Kadarisman Hidayat Roles: Conceptualization, Formal Analysis, Methodology, Resources, Validation, Writing – Review & Editing Arik Prasetya Roles: Conceptualization, Formal Analysis, Methodology, Resources, Validation, Writing – Review & Editing Competing interests No competing interests were disclosed. Grant information The author(s) declared that no grants were involved in supporting this work. Article Versions (1) version 1 Published: 12 Aug 2025, 14:784 https://doi.org/10.12688/f1000research.166062.1 Copyright © 2025 Wibowo FH et al . This is an open access article distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Download Export To Sciwheel Bibtex EndNote ProCite Ref. Manager (RIS) Sente metrics Views Downloads F1000Research - - PubMed Central info_outline Data from PMC are received and updated monthly. - - Citations open_in_new 0 open_in_new 0 open_in_new SEE MORE DETAILS CITE how to cite this article Wibowo FH, Nimran U, Hidayat K and Prasetya A. The influence of transformational leadership on employee performance through dynamic capability and organizational learning [version 1; peer review: 1 approved] . 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Reviewer Report For: The influence of transformational leadership on employee performance through dynamic capability and organizational learning [version 1; peer review: 1 approved] . F1000Research 2025, 14 :784 ( https://doi.org/10.5256/f1000research.182911.r430089 ) The direct URL for this report is: https://f1000research.com/articles/14-784/v1#referee-response-430089 NOTE: it is important to ensure the information in square brackets after the title is included in this citation. Close Copy Citation Details Reviewer Report 22 Nov 2025 Agus David Ramdansyah , Universitas Sultan Ageng Tirtayasa, Banten, Indonesia Approved VIEWS 0 https://doi.org/10.5256/f1000research.182911.r430089 Peer Review Report Article title: The influence of transformational leadership on employee performance through dynamic capability and organizational learning Authors: F. Harianto Wibowo, Umar Nimran, Kadarisman Hidayat, Arik Prasetya Journal: : F1000Research (2025, 14:784) DOI:10.12688/f1000research.166062.1 ... Continue reading READ ALL Peer Review Report Article title: The influence of transformational leadership on employee performance through dynamic capability and organizational learning Authors: F. Harianto Wibowo, Umar Nimran, Kadarisman Hidayat, Arik Prasetya Journal: : F1000Research (2025, 14:784) DOI:10.12688/f1000research.166062.1 Summary of the Article: This paper explores how transformational leadership affects employee performance, both directly and indirectly, through dynamic capability and organizational learning. The study uses a quantitative explanatory design and applies PLS-SEM (SmartPLS) to analyze data from 197 respondents at PT. Pertamina Lubricants in Indonesia. Findings: - Transformational leadership significantly affects dynamic capability and organizational learning. - The direct effect of transformational leadership on performance is non-significant. - Dynamic capability and organizational learning both positively influence employee performance. - Only organizational learning acts as a significant mediator. The authors conclude that organizations should strengthen their dynamic capabilities and learning culture to enhance employee performance. Notes: 1. The manuscript is clearly structured, logically presented, and written in a fluent academic style. The literature review integrates both foundational theories (Bass, Burns, Senge, Teece) and recent empirical studies (e.g., Hair et al., 2022; Wamalwa, 2023; Tworek et al., 2023), ensuring theoretical depth and currency. Suggestions: - Add a few more recent studies (2022–2025) on leadership and organizational learning in digital or post-pandemic contexts to enhance relevance. - The introduction could include a brief contextual discussion on the Indonesian corporate environment to emphasize the study’s contribution. 2. The explanatory quantitative design is appropriate for testing causal relationships. Using SEM-PLS aligns with the model’s complexity and the moderate sample size. The hypotheses are logically derived from theory and prior research. Suggestions: - Clarify the sampling technique (e.g., purposive, random, or convenience) and response rate. - Justify briefly why PLS-SEM was chosen instead of covariance-based SEM (AMOS/LISREL), noting sample size or model complexity considerations. - Consider adding a short note on ethical considerations earlier in the methodology for flow. 3. The paper provides detailed information about the population, sample, instrument indicators, and validation criteria (AVE, Cronbach’s Alpha, Composite Reliability). Tables of outer and inner model results are complete and clearly labeled. Suggestions: - Include the exact questionnaire items or sample indicators as supplementary material. - Specify the SmartPLS version and describe briefly how missing data (if any) were treated. - Mention whether discriminant validity was confirmed via HTMT or Fornell-Larcker criteria. 4. The statistical analysis is robust and appropriately executed. Path coefficients, p-values, and mediation tests are reported clearly. The interpretation of the non-significant direct path is logically consistent with the literature. Suggestions: - Include effect size (f²) and predictive relevance (Q²) to demonstrate the model’s explanatory strength. - Expand the discussion by linking statistical results to more practical implications for leadership development and HR strategy. 5. All underlying data are publicly accessible via Figshare (DOI provided), and the dataset includes variable details and measurement indicators. This satisfies open-data and reproducibility standards. Suggestions: - Optionally, include the SmartPLS model file (.splsm) or path diagram in the Figshare dataset for exact replication by other researchers. 6. The conclusions are well aligned with the results and supported by empirical evidence. The authors appropriately recognize that transformational leadership influences performance indirectly through learning and capability-building mechanisms. Suggestions: - Strengthen the limitations section, discussing the single-company scope, sample representativeness, and possible common-method bias. - Suggest future research directions, such as exploring additional mediators (e.g., innovation climate or digital readiness) or testing the model in different industries. - Expand the managerial implications with actionable recommendations for HR or leadership training programs. 7. Overall: Clarity and Presentation: Excellent Literature Review: Comprehensive and current Methodology: Appropriate and clearly described Statistical Analysis: Technically sound Data Transparency: Fully open and reproducible Theoretical and Practical Contribution: Strong and relevant 8. Strengths - Clear conceptual framework integrating transformational leadership, dynamic capability, and organizational learning. - Rigorous quantitative design using PLS-SEM. - Open-access dataset promoting transparency and reproducibility. - Valuable contribution to leadership and performance studies in the Indonesian context. 9. Weaknesses / Areas for Improvement - Minor lack of methodological clarity on sampling and software version. - Literature review could include more contemporary studies related to digital leadership. - Limited discussion of managerial implications and research limitations. 10. Recommendations To Make the Article Scientifically Complete (Essential): 1. Clarify sampling method, response rate, and SmartPLS version. 2. Add a brief statement about assumptions testing and discriminant validity. 3. Expand the limitations and future research sections for transparency. To Improve Readability and Impact (Optional): 1. Include questionnaire items as an appendix or online supplement. 2. Add f² and Q² values to strengthen analysis. 3. Provide more contextual and managerial insights in the discussion section. 11. Overall Recommendation Approved with minor revisions. The article is scientifically sound, methodologically rigorous, and clearly presented. Addressing the minor methodological clarifications and expanding contextual discussions will further enhance its academic and practical contribution. Is the work clearly and accurately presented and does it cite the current literature? Yes Is the study design appropriate and is the work technically sound? Yes Are sufficient details of methods and analysis provided to allow replication by others? Yes If applicable, is the statistical analysis and its interpretation appropriate? Yes Are all the source data underlying the results available to ensure full reproducibility? Yes Are the conclusions drawn adequately supported by the results? Yes Competing Interests: No competing interests were disclosed. Reviewer Expertise: Marketing, e-commerce, business digital, consumer behavior I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard. Close READ LESS CITE CITE HOW TO CITE THIS REPORT Ramdansyah AD. Reviewer Report For: The influence of transformational leadership on employee performance through dynamic capability and organizational learning [version 1; peer review: 1 approved] . F1000Research 2025, 14 :784 ( https://doi.org/10.5256/f1000research.182911.r430089 ) The direct URL for this report is: https://f1000research.com/articles/14-784/v1#referee-response-430089 NOTE: it is important to ensure the information in square brackets after the title is included in all citations of this article. COPY CITATION DETAILS Report a concern Respond or Comment COMMENT ON THIS REPORT Comments on this article Comments (0) Version 1 VERSION 1 PUBLISHED 12 Aug 2025 ADD YOUR COMMENT Comment keyboard_arrow_left keyboard_arrow_right Open Peer Review Reviewer Status info_outline Alongside their report, reviewers assign a status to the article: Approved The paper is scientifically sound in its current form and only minor, if any, improvements are suggested Approved with reservations A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit. Not approved Fundamental flaws in the paper seriously undermine the findings and conclusions Reviewer Reports Invited Reviewers 1 Version 1 12 Aug 25 read Agus David Ramdansyah , Universitas Sultan Ageng Tirtayasa, Banten, Indonesia Comments on this article All Comments (0) Add a comment Sign up for content alerts Sign Up You are now signed up to receive this alert Browse by related subjects keyboard_arrow_left Back to all reports Reviewer Report 0 Views copyright © 2025 Ramdansyah A. This is an open access peer review report distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. 22 Nov 2025 | for Version 1 Agus David Ramdansyah , Universitas Sultan Ageng Tirtayasa, Banten, Indonesia 0 Views copyright © 2025 Ramdansyah A. This is an open access peer review report distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. format_quote Cite this report speaker_notes Responses (0) Approved info_outline Alongside their report, reviewers assign a status to the article: Approved The paper is scientifically sound in its current form and only minor, if any, improvements are suggested Approved with reservations A number of small changes, sometimes more significant revisions are required to address specific details and improve the papers academic merit. Not approved Fundamental flaws in the paper seriously undermine the findings and conclusions Peer Review Report Article title: The influence of transformational leadership on employee performance through dynamic capability and organizational learning Authors: F. Harianto Wibowo, Umar Nimran, Kadarisman Hidayat, Arik Prasetya Journal: : F1000Research (2025, 14:784) DOI:10.12688/f1000research.166062.1 Summary of the Article: This paper explores how transformational leadership affects employee performance, both directly and indirectly, through dynamic capability and organizational learning. The study uses a quantitative explanatory design and applies PLS-SEM (SmartPLS) to analyze data from 197 respondents at PT. Pertamina Lubricants in Indonesia. Findings: - Transformational leadership significantly affects dynamic capability and organizational learning. - The direct effect of transformational leadership on performance is non-significant. - Dynamic capability and organizational learning both positively influence employee performance. - Only organizational learning acts as a significant mediator. The authors conclude that organizations should strengthen their dynamic capabilities and learning culture to enhance employee performance. Notes: 1. The manuscript is clearly structured, logically presented, and written in a fluent academic style. The literature review integrates both foundational theories (Bass, Burns, Senge, Teece) and recent empirical studies (e.g., Hair et al., 2022; Wamalwa, 2023; Tworek et al., 2023), ensuring theoretical depth and currency. Suggestions: - Add a few more recent studies (2022–2025) on leadership and organizational learning in digital or post-pandemic contexts to enhance relevance. - The introduction could include a brief contextual discussion on the Indonesian corporate environment to emphasize the study’s contribution. 2. The explanatory quantitative design is appropriate for testing causal relationships. Using SEM-PLS aligns with the model’s complexity and the moderate sample size. The hypotheses are logically derived from theory and prior research. Suggestions: - Clarify the sampling technique (e.g., purposive, random, or convenience) and response rate. - Justify briefly why PLS-SEM was chosen instead of covariance-based SEM (AMOS/LISREL), noting sample size or model complexity considerations. - Consider adding a short note on ethical considerations earlier in the methodology for flow. 3. The paper provides detailed information about the population, sample, instrument indicators, and validation criteria (AVE, Cronbach’s Alpha, Composite Reliability). Tables of outer and inner model results are complete and clearly labeled. Suggestions: - Include the exact questionnaire items or sample indicators as supplementary material. - Specify the SmartPLS version and describe briefly how missing data (if any) were treated. - Mention whether discriminant validity was confirmed via HTMT or Fornell-Larcker criteria. 4. The statistical analysis is robust and appropriately executed. Path coefficients, p-values, and mediation tests are reported clearly. The interpretation of the non-significant direct path is logically consistent with the literature. Suggestions: - Include effect size (f²) and predictive relevance (Q²) to demonstrate the model’s explanatory strength. - Expand the discussion by linking statistical results to more practical implications for leadership development and HR strategy. 5. All underlying data are publicly accessible via Figshare (DOI provided), and the dataset includes variable details and measurement indicators. This satisfies open-data and reproducibility standards. Suggestions: - Optionally, include the SmartPLS model file (.splsm) or path diagram in the Figshare dataset for exact replication by other researchers. 6. The conclusions are well aligned with the results and supported by empirical evidence. The authors appropriately recognize that transformational leadership influences performance indirectly through learning and capability-building mechanisms. Suggestions: - Strengthen the limitations section, discussing the single-company scope, sample representativeness, and possible common-method bias. - Suggest future research directions, such as exploring additional mediators (e.g., innovation climate or digital readiness) or testing the model in different industries. - Expand the managerial implications with actionable recommendations for HR or leadership training programs. 7. Overall: Clarity and Presentation: Excellent Literature Review: Comprehensive and current Methodology: Appropriate and clearly described Statistical Analysis: Technically sound Data Transparency: Fully open and reproducible Theoretical and Practical Contribution: Strong and relevant 8. Strengths - Clear conceptual framework integrating transformational leadership, dynamic capability, and organizational learning. - Rigorous quantitative design using PLS-SEM. - Open-access dataset promoting transparency and reproducibility. - Valuable contribution to leadership and performance studies in the Indonesian context. 9. Weaknesses / Areas for Improvement - Minor lack of methodological clarity on sampling and software version. - Literature review could include more contemporary studies related to digital leadership. - Limited discussion of managerial implications and research limitations. 10. Recommendations To Make the Article Scientifically Complete (Essential): 1. Clarify sampling method, response rate, and SmartPLS version. 2. Add a brief statement about assumptions testing and discriminant validity. 3. Expand the limitations and future research sections for transparency. To Improve Readability and Impact (Optional): 1. Include questionnaire items as an appendix or online supplement. 2. Add f² and Q² values to strengthen analysis. 3. Provide more contextual and managerial insights in the discussion section. 11. Overall Recommendation Approved with minor revisions. The article is scientifically sound, methodologically rigorous, and clearly presented. Addressing the minor methodological clarifications and expanding contextual discussions will further enhance its academic and practical contribution. Is the work clearly and accurately presented and does it cite the current literature? Yes Is the study design appropriate and is the work technically sound? Yes Are sufficient details of methods and analysis provided to allow replication by others? Yes If applicable, is the statistical analysis and its interpretation appropriate? Yes Are all the source data underlying the results available to ensure full reproducibility? Yes Are the conclusions drawn adequately supported by the results? Yes Competing Interests No competing interests were disclosed. Reviewer Expertise Marketing, e-commerce, business digital, consumer behavior I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard. reply Respond to this report Responses (0) Ramdansyah AD. Peer Review Report For: The influence of transformational leadership on employee performance through dynamic capability and organizational learning [version 1; peer review: 1 approved] . F1000Research 2025, 14 :784 ( https://doi.org/10.5256/f1000research.182911.r430089) NOTE: it is important to ensure the information in square brackets after the title is included in this citation. 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