CAN SPIRITUAL LEADERSHIP AND EMPOWERMENT ENHANCE EMPLOYEE PERFORMANCE THROUGH SATISFACTION?

Abstract

Employee performance constitutes a critical determinant of organizational competitiveness; nonetheless, many firms continue to overlook the underlying psychological mechanisms that connect leadership and empowerment to performance outcomes. This study investigates the effects of spiritual leadership and employee empowerment on employee performance, with job satisfaction serving as a mediating construct, within the theoretical framework of the Job Demands–Resources (JD–R) Theory. Both spiritual leadership and empowerment are conceptualized as value-based job resources that activate motivational processes through enhanced job satisfaction. Employing a quantitative research design, data were collected via a structured, closed-ended questionnaire administered to 119 respondents drawn from a population of 703 employees at PT X, a manufacturing enterprise located in Bandung Regency. Sampling was executed using a proportionate stratified random approach, and data were analyzed through Partial Least Squares–Structural Equation Modeling (PLS–SEM) using SmartPLS 4. The results demonstrate that spiritual leadership and employee empowerment exert significant positive influences on job satisfaction, though their direct effects on performance are not statistically significant. Job satisfaction, however, positively and significantly impacts performance and functions as a full mediator between leadership, empowerment, and performance. The findings advance the JD–R Theory by framing spiritual leadership and empowerment as value-infused resources that foster motivational pathways culminating in optimal performance. Practically, the study underscores the necessity of cultivating a values-driven leadership ethos and empowerment systems designed to enhance employees' psychological well-being and sustainable performance in the manufacturing context.