Email: ijbe. feubb@gmail. http://ojs. ijbe-research. com/index. php/IJBE/index Transformational Leadership: How Intrinsic Motivation and Innovation at Workplace Bambang Satriawana*. Nolla Puspita Dewia. Sri Yantia. Yuliansyah Yuliansyahb Universitas Batam, bUniversity of Lampung bambangsatriawan@univbatam. Abstract This study aims to examine the relationship between transformational leadership and the improvement of employees' innovative performance in the service division of Regional Apparatus Organizations in Karimun Regency. Riau Islands Province. This quantitative research uses a non-probability random sampling technique. There are 100 respondens participated in this research, with primary data collected through questionnaires. Data analysis includes descriptive statistics, data quality tests, outer and inner model tests, and hypothesis testing using. The results show that transformational leadership has a significant positive effect on innovative performance. Intrinsic motivation also positively and significantly affects innovative performance. Furthermore, transformational leadership significantly influences intrinsic motivation and indirectly enhances innovative performance through intrinsic motivation. This study highlights the importance of transformational leadership in fostering employee motivation and innovation within local government organizations. Article Info A Received A Revised A Published A Pages A DOI A JEL A Keywords : 16th April 2025 : 19th August 2025 : 28th August 2025 : 493-504 : http://dx. org/10. 33019/ijbe. : J81. L20 : Transformational Leadership. Intrinsic Motivation. Innovative Performance This work is licensed under a Creative Commons Attribution 4. 0 International License Introduction Leaders need organizational members to devote all their attention and effort to fulfill the formal job demands outlined in the work contract to deal with an increasingly complex and rapidly changing environment (Song. Chai. Kim, & Bae, 2. Members must go above and beyond because job descriptions cannot and do not include all forms of behavior required to complete job requests when tasks are intertwined. For example, because this behavior is discretionary, job descriptions cannot specify exactly when and how members should approach their peers to help others (Rasul. Rogger, & Williams, 2. Therefore, leaders need to understand the preliminary and basic mechanisms that encourage employees to fulfill the job requirements of their roles to the best of their abilities and make them willing to do so (Afsar. Badir, & Saeed. Leaders impact the behavior of members at work because they are seen as role models of the organization and have the power to assess the performance of members or decide whether to promote them (Ke. Zhang, & Zheng, 2. As a result, leaders can influence membersAo All levels of the leader's organization are able to display transformational leadership because it is a common leadership style (Ramdhani. Prakoso, & Permana, 2. Transformational leaders can change the behavior of their followers, motivating them to exceed their expectations by engaging in four activities: idealized influence, inspirational motivation, intellectual stimulation, and tailored judgment (Jensen et al. , 2. Many theoretical and empirical studies have found that transformational leadership influences and enhances memberhelping behaviors and task performance (Abu-Rumman, 2021. Jensen et al. , 2019. Muliati. Asbari. Nadeak. Novitasari, & Purwanto, 2. Few studies have attempted to address how transformational leaders inspire their followers to complete in-role task requests and exceed their expectations, although previous research has examined the mechanisms underlying the relationship between transformational leadership and positive outcomes (Jensen et al. , 2. Motivation is seen as an important factor that makes up member behavior. therefore, it is necessary to understand the underlying motivational process (Nugroho et al. , 2. Work engagement has been identified as an important but underappreciated mechanism that requires more research, as explained by the concepts of motivation and work involvement (Jufrizen. Mukmin. Nurmala, & Jasin, 2. Existing literature on transformative leadership has expanded in various ways. First, we responded to requests made by previous research to examine the mechanisms behind transformational leadership and positive workplace outcomes (H. Lee & Lee, 2. Although academics have made progress in identifying potential mediators, the motivational components of the influence of transformational leadership need to be studied. Furthermore, investigation of work involvement is important because transformational leaders must be aware of how to increase member performance through motivation. On the other hand, in fast-paced settings, leaders constantly demand that team members pay full attention to worker functions, so that workplace engagement can act as a channel of influence. This study aims to clarify the mediating effect of intrinsic motivation and rule out alternative mediation processes. This classification was used because it can improve membersAo task performance and helping behavior, and LMX and self-efficacy are controlled as potential mediators (Hadian, 2018. Hendri, 2019. Lin & Lee, 2. This work is licensed under a Creative Commons Attribution 4. 0 International License Literature Review Public Organization According to Umar. Tamsah. Mattalatta. Baharuddin, and Latief R . , a public organization is a forum that has multiple roles and is established to provide and realize the wishes of various parties and satisfaction, including the owners. According to Fligstein . , public organizations are social units that are consciously coordinated with a relatively identifiable boundary that works on a relatively continuous basis to achieve a common goal or group of The definition of a public organization itself correlates with the process of organizing. According to Christensen. Lygreid, and Ryvik . , organizing is the process of compiling an organizational structure that is in accordance with the goals of the organization, the resources it has, and the environment that surrounds it. Thus, the result of organizing is the organizational structure with regard to the suitability of the bureaucratic organization, which is the organizer of public policy implementation. The challenge is how to avoid bureaucratic fragmentation, because this structure makes the implementation process far from effective. A public organization is a space that guarantees the provision of public services in accordance with the general principles of good governance and corporations, and provides protection for every citizen and resident from abuse of authority in the administration of public services, based on the legal arrangements that support it. Organizational Performance Rehman. Mohamed, and Ayoup . revealed that organizational performance describes how far a group has carried out all the main activities to achieve the vision and mission of the George. Walker, and Monster . stated that "Organizational performance is the effectiveness of the organization as a whole for the defined needs of each relevant group through systemic efforts and continuously improving the ability of the organization to achieve its needs From some of these descriptions and opinions, organizational performance can be said to be the ability to carry out tasks that have become a burden to the organization as well as possible to achieve the goals previously agreed upon. In addition to focusing on achieving goals, organizational performance also focuses on the process of managing several sub-objectives, evaluation results, organizational conditions, influences from the environment, human resources, and several parties involved. Innovative Performance Employee performance is the result of someone performing the task in accordance with the instructions given. this may be true of quality or quantity(Gupta. Singh, & Bhattacharya, 2. (Gupta et al. , 2017. Ratna, 2. According to Gibson. Ivancevich. Donelly, and Konopaske, "job performance is the result of work that is in accordance with organizational goals such as quality, efficiency, and other effectiveness criteria"(Meseguer-Synchez. Gylvez-Synchez. Lypez-Martynez, & Molina-Moreno, 2021. Muliati et al. , 2. Performance is the result of work related to organizational goals such as other categories of effectiveness, efficiency, and service quality. According to Robbins, performance indicators include quality, quantity, timeliness, effectiveness, measurability, and commitment to work products. In addition. Gomes' performance is evaluated based on its output in terms of quantity, quality, work knowledge, creativity, teamwork, reliability, and initiative Zhang. Khan. Lee, and Salik . Transformational Leadership Lee & Lee . , define transformational leadership as leaders who inspire their followers to This work is licensed under a Creative Commons Attribution 4. 0 International License put aside their personal interests for the good of the organization and they are able to have an extraordinary influence on their followers. According to Jensen et al. , transformational leadership is a situation in which the followers of a transformational leader feel trust, admiration, loyalty, and respect for the leader and are motivated to do more than they originally According to Nugroho et al. , transformational leadership is a leaderAos ability to work with and/or through other people to optimally transform organizational resources to achieve meaningful goals according to predetermined targets. According to Intarakamhang and Kijthonthum . , transformational leadership is a leadership style used by a manager when he wants a group to expand boundaries and performance beyond the status quo of the organization to achieve a new set of organizational goals. According to Sukarman. Hamzah, and Ella . , transformational leadership is characterized as a leader who focuses on achieving changes in the values, beliefs, attitudes, behavior, emotions, and needs of subordinates towards better changes in the future. Intrinsic Motivation Intrinsic motivation is the feeling of acting that comes from within an individual (Hadian 2. Individual intrinsic motivation comes from individuals who consistently have higher pay and greater responsibility because they believe that their work is meaningful, challenging, and rewarding (Gopalan. Bakar. Zulkifli. Alwi, & Mat, 2017. Ryan & Deci, 2. According to some definitions, intrinsic motivation is a state or quality that drives a person to develop strong internal relationships and understand the importance of the work they do. The following indicators were used: Achievement. Appreciation. Independent Work. Responsibility, and Progress. According to Iriani . , it shows that intrinsic motivation has a positive influence on employee performance. In addition, according to C. Lee. Hayes. Seitz. DiStefano, and O'Connor . , intrinsic motivation has a positive effect on employee performance. Transformational Leadership toward Innovative Performance Elmasry and Bakri . argue that leadership style is an effort or way for a leader to achieve organizational goals by paying attention to the elements of philosophy, skills, traits, and attitudes of employees. Hansbrough and Schyns . stated that transformational leadership drives higher-level needs to followers. Based on the opinions of these experts, it can be stated that transformational leadership is the attitude of a leader who is able to make subordinates follow their orders and even carry out activities outside of the assigned tasks. Soetantyo . argues that innovative behavior emphasizes the existence of a creative attitude so that there is a process of changing attitudes from traditional to modern, or from an attitude that has not yet advanced to an attitude that has been advanced. Lin and Lee . define innovative work behavior as individual behavior that aims to achieve intentional initiation and introduction . n work roles, groups, or organization. and useful ideas, processes, products, or procedures. Based on the opinions of these experts, it can be stated that innovative work behavior is the behavior of individuals or organizational members who introduce the ideas they make to a group or organization where they work. The results of research conducted by Asbari. Purwanto, and Santoso . state that transformational leadership has a positive and significant influence on innovative work behavior. This means that the more positive the superior's leadership practices, the better the employee's innovative work behavior will be. This finding is in line with those of Aditya and Ardana . and Afsar and Umrani . H1 : Transformational Leadership affects innovative performance This work is licensed under a Creative Commons Attribution 4. 0 International License Intrinsic Motivation for Innovative Performance Intrinsic motivation is encouragement from within the individual because they feel challenged by the demands of work. Meanwhile, extrinsic motivation is an encouragement that arises as a result of external stimuli, such as offering incentives to achieve higher performance. The goals of intrinsic motivation include increasing work performance, work discipline, passion and morale, productivity and efficiency, a sense of responsibility, a sense of loyalty, and changing behavior according to the wishes of the organization (Fischer. Malycha, & Schafmann, 2. Work performance or achievement is a record of results obtained from work conducted within a certain period (Ssemwanga, 2. Employee performance influences employee contributions to the organization, such as output quantity, output quality, output period, workplace attendance, and cooperative attitude (Hadian, 2. Research conducted by Kimberly. Prakoso, and Efrata . stated that intrinsic motivation affects the dependent variable of individual performance. The higher the level of motivation, the more optimal the results With this motivation, it will be able to encourage individuals to work with enthusiasm, persistence, tenacity, and have a good commitment to completing their tasks. H2: Intrinsic Motivation Affects Innovative Performance Transformational Leadership Toward Intrinsic Motivation There are several ways transformational leaders influence their employees, namely. provide understanding to employees so that they are more aware of the importance of the results of a job . provide understanding to employees to prioritize organizational interests over individual interests, . provide understanding to employees of needs at a higher and honorable level (Hatta. Rachbini. Riskarini, & Mandagie, 2. Transformational leadership is urgently needed in conditions of increasing the intensity of current business competition because this leadership includes efforts to anticipate change so that it is believed to create and maintain employee performance both now and in the future (Reza, 2. The results of research conducted by (Hadian, 2. stated that transformational leadership had a positive and significant effect on intrinsic motivation. This indicates that leadership effectiveness is the ability of a leader to actively encourage employees in an organization. H3: Transformational Leadership Affects Intrinsic Motivation Transformational Leadership on Innovative Performance through Intrinsic Motivation Transformational leadership style has four components, namely the Four's, which include Individual consideration. Intellectual stimulation. Inspirational motivation and Idealized influence (Pratama & Kasmirudin, 2017. Wahyuni. Tadung, & Fadli, 2. According to Adil and Ab Hamid . , there are factors that influence motivation, namely Achievement. Recognition. Responsibility. Challenging work and Advancement . Furthermore. Ssemwanga . , concluded that innovation behavior is formed by 4 . components, including Opportunity Exploration/Exploration Opportunities. Idea Generation/Generation about Ideas. Championing/Fighting for, and Application/Implementation. Krisnawati. Widyani, and Saraswati . state that work motivation is proven capable of acting as an intervening variable influencing transformational leadership on employee performance. H4: Intrinsic Motivation Can Mediate the Effects of Transformational Leadership toward Innovative Performance. This work is licensed under a Creative Commons Attribution 4. 0 International License Research Methods This research uses survey research (Creswell & Hirose, 2019. Sileyew, 2. The research sample is 100 service employees in Karimun Regency. In meeting the analytical standards, this study used the measurement of variables using an instrument . in the form of closed statements and was measured using a Likert scale from 1 to 5. Respondents were asked to give their opinions on each statement item from strongly disagree to strongly agree (Yusuf. This study uses data quality tests . alidity and reliabilit. assisted by SPSS 25 software, outer model test, inner model and hypothesis testing assisted by SmartPLS software and Microsoft Excel. Based on the testing, the validity and reliable question items are valid (Pakpahan et al. , 2. To test the reliability of data processing results that the Coranbach Alpha value of each variable above with a reliable level used is > 0. 60 or > 60% so that all variables in this study can and are appropriate to use (Hermawan, 2. Hypothesis testing in this study was carried out using the Structural Equation Model (SEM) with the SmartPLS approach. Coranbach alpha and composite reliability are two methods that can be used for the Reliability in the Construct in PLS Test (Pakpahan et al. , 2. Composite reliability is a measure of reliability that lowers the upper limit of variable dependency, while Coranbach alpha lowers the lower limit of variable reliability. The reliability score used in this study comes from composite reliability, but Coranbach's alpha is not used because composite reliability is more effective in estimating internal consistency in certain constructs. According to Pakpahan et al. , each variable has high reliability when the composite reliability is A convergent validity test is an extent to which a measurement is positively correlated with alternative measurements of the same construct. To measure convergent validity, standardized loading factors are used which describe the magnitude of the correlation between each indicator and its construct. A loading factor value above 0. 70 is stated as an ideal or valid measure as an indicator in measuring constructs (Sugiyono, 2. A discriminant validity test is an extent to which a construct is really different from other constructs. The purpose of testing discriminant validity is to assess whether an indicator of a constructed variable is valid or not according to the Fornell-Larcker criteria, if the square root value of the AVE value is greater than the highest correlation value of a variable with other variables, then the variable has discriminant validity good or valid (Hermawan, 2. Structural Models Y= 1 X 2 Z 3 [X. Y] A Where. Y = Innovative Performance X = Transformational Leadership Z = Intrinsic Motivation 1, 2 = Path coefficient values 3 = Coefficient value of the mediating effect path [X. Y] = Intervening variable A = Error Coefficient This work is licensed under a Creative Commons Attribution 4. 0 International License The collinearity test is to prove whether the correlation between latent or construct variables is strong or not. If there is a strong correlation, it means that the model contains problems from a methodological point of view. Because it has an impact on the estimation of statistical significance, this problem is called collinearity. The value used to analyze it is by looking at the Variance Inflation Factor (VIF) value. If VIF is greater than 0. 10 then there is a collinearity problem, and conversely, there is no collinearity problem if the VIF value is less than 0. (Solimun & Fernandes, 2. Results Figure 2. Measurement of Relationship Model of Transformational Leadership Variables. Intrinsic Motivation. Innovative Performance Table 1 Hypothesis Test Results Variable Path Coefficient T Statistics P-Values Description Accept XIeY Accept ZIeY Accept XIeZ Accept XIeZIeY The table above explains that variable X (Transformational Leadershi. has a positive and significant effect on variable Y (Innovative Performanc. with a T-statistic value of 4. greater than 1. 96 and a p-value of 0. 000 <0. This means that the leadership of service employees in Karimun Regency is getting more positive in their leadership practices so the innovative performance of service staff in Karimun Regency is getting better. Where transformational leadership is the attitude of a leader who is able to make his subordinates follow his orders and even carry out activities outside of the assigned tasks. The results of this study are in line with research conducted by Aditya and Ardana . and Asbari et al. stating that transformational leadership has a positive and significant influence on innovative work behavior. Furthermore, the research results of Variable Z (Intrinsic Motivatio. have a significant positive effect on Y (Innovative Performanc. with a T-statistic value of 2,621 greater than 1. 96 and a p-value of 0. 009 <0. Intrinsic motivation is encouragement from within This work is licensed under a Creative Commons Attribution 4. 0 International License individuals who have goals including increasing work performance, work discipline, passion and morale, productivity and efficiency, a sense of responsibility, a sense of loyalty, and changing behavior in accordance with the wishes of the organization (Fischer et al. , 2. The higher the level of motivation, the more optimal the results obtained. With this motivation, it will be able to encourage individuals to work with enthusiasm, perseverance, tenacity, and have a good commitment to completing their tasks. The results of this study support research conducted by (Kimberly et al. , 2. which states that intrinsic motivation influences the dependent variable of individual performance. Besides that, variable X (Transformational Leadershi. has a positive and significant effect on variable Z (Intrinsic Motivatio. with a T-statistic value of 9. 016 greater than 1. 96 and a pvalue of 0. 000 <0. This means that the leadership of the service staff in Karimun Regency is increasingly positive in their leadership practices, as to increase the intrinsic motivation of service staff in Karimun Regency. This indicates that leadership effectiveness is the ability of a leader to actively encourage employees in an organization. The results of this study are in line with research conducted by (Hadian, 2. which states that transformational leadership has a positive and significant effect on intrinsic motivation. Furthermore, the effect of X on Y with variable Z intervening with a T-statistic value of 2. is greater than 1. 96 and has a p-value of 0. 024 <0. This explains that intrinsic motivation is able to influence the relationship between transformational leadership variables and innovative performance. Visionary leaders are able to provide positive energy for employees so that employees will be more innovative at work. This research supports the results of previous research conducted by (Krisnawati et al. , 2. which states that work motivation is proven to be able to act as an intervening variable influencing transformational leadership on employee performance. Conclusion From the results of the research and discussion it can be concluded that the transformational leadership and intrinsic motivation variables have a significant effect on the innovative performance of Karimun Regency service employees, and intrinsic motivation is able to mediate the transformational leadership relationship with the innovative performance of Karimun Regency service employees. References