Title:
THE ROLE OF TRANSFORMATIONAL LEADERSHIP AND KNOWLEDGE MANAGEMENT IN HUMAN CAPITAL AND ITS IMPLICATIONS ON THE PERFORMANCE OF THE ACEH FINANCIAL MANAGEMENT AGENCY

Authors:
Yayang Safriyanti, Said Musnadi and Teuku Roli Ilhamsyah Putra ,Indonesia

Abstract:
This study intends to examine the role of transformational leadership and knowledge management in human capital and its implications for the performance of the Aceh Financial Management Agency (BPKA). The population of this research is all civil servants (PNS) at BPKA, amounting to 378 people. This research established Stratified Proportional Random Sampling as a method of sampling based on the BPKA work unit group so that 131 people were obtained as a sample. Data were collected using a questionnaire and analyzed using the Structural Equation Modeling (SEM) method. The results of the descriptive hypothesis testing prove that transformational leadership, knowledge management, human capital, and organizational performance at BPKA are good. The results of direct hypothesis testing prove that transformational leadership and knowledge management have a significant effect on human capital, and transformational leadership, knowledge management, and human capital have a significant effect on BPKA organizational performance. The results of hypothesis testing indirectly prove that human capital plays a role as partial mediation both in mediating the role of transformational leadership on organizational performance and in mediating knowledge management on organizational performance at BPKA. All of these results prove that modeling to improve BPKA's organizational performance can be used. This can be a reference both academically and practically. Further researchers can use this proven research model for further research development, by adding other variables such as organizational citizenship behavior (OCB) and high-performance working systems (HPWS).