https://dinastipub. org/DIJEFA Vol. No. 4, 2025 DOI: https://doi. org/10. 38035/dijefa. https://creativecommons. org/licenses/by/4. The Influence of Person-Job Fit and Transformational Leadership on Performance at the Msme Bakpia Pathok 25 Pathok Jaya with Power Distance as a Moderating Variable Irfan Marulitua Doloksaribu1*. Syamsul Hadi2. Epsilandri Septyarini3 Program Studi Manajemen. Fakultas Ekonomi. Universitas Sarjanawiyata Tamansiswa. Yogyakarta. Indonesia, irfandoloksaribu24@gmail. Program Studi Manajemen. Fakultas Ekonomi. Universitas Sarjanawiyata Tamansiswa. Yogyakarta. Indonesia, syamsul. hadi@ustjogja. Program Studi Manajemen. Fakultas Ekonomi. Universitas Sarjanawiyata Tamansiswa. Yogyakarta. Indonesia, epsilandriseptyarini@ustjogja. Corresponding Author: irfandoloksaribu24@gmail. Abstract: This study aims to simultaneously analyze the influence of person-job fit and transformational leadership on employee performance, as well as examine how power distance acts as a moderating variable in this relationship. A quantitative approach with a causal method was used to test the cause-and-effect relationships between variables. The population of this research includes all 200 employees of Bakpia Pathok 25 Pathok Jaya, with a sample of 134 respondents selected through stratified sampling based on work divisions. Data were collected using a questionnaire, and data analysis techniques included descriptive statistics, classical assumption tests . ormality, multicollinearity, and heteroscedasticity test. , and hypothesis testing using T-test. F-test, and coefficient of determination (RA) analysis. The results showed that person-job fit had a negative effect on performance, indicating that lower compatibility between individuals and their jobs leads to decreased employee performance. On the other hand, transformational leadership had a positive effect on performance, showing that a strong transformational leadership style can enhance employee performance. However, power distance as a moderating variable did not strengthen the effect of either person-job fit or transformational leadership on performance. Thus, although power distance plays a role in organizational dynamics, it does not serve as a decisive factor in reinforcing the relationship between leadership or job fit and employee performance. These findings have important implications for human resource management in creating an effective and adaptive work Keywords: Person-Job Fit. Transformational Leadership. Performance. Power Distance. 3389 | P a g e https://dinastipub. org/DIJEFA Vol. No. 4, 2025 INTRODUCTION Performance refers to the work outcomes achieved by an individual in carrying out the tasks assigned to them, based on their skills, experience, dedication, and time, and is influenced by factors such as the work environment, colleagues, and leadership (Surakhmat et al. , 2. Performance is highly important because it affects the stability of an organization, company, or MSME. According to (Torabi et al. , 2. performance is crucial for organizational effectiveness and improvement, as it can enhance long-term profitability, growth rates, income, job satisfaction, employee productivity, as well as service and product quality. Performance does not simply emerge in an employee or organization. It is influenced by many factors. In a study by (Agung & Jumaidi, 2. it was found that education and training, work environment, competence, leadership, work motivation, and work discipline simultaneously have a significant effect on employee performance. This study focuses on the leadership factor, specifically transformational leadership style, and on education and competence, which are incorporated into the concept of person-job fit, or the alignment between an individual and their job. Transformational leadership is a concept in which leaders and their followers mutually enhance each otherAos motivation and morale. This leadership style involves inspiring members to achieve a shared vision, encouraging them to realize their full potential, and viewing problems from new perspectives. The term "transformational" signifies a process of transforming or changing something into a different form (Karyono & Jimad. Meanwhile, person-job fit refers to the alignment between an employee's abilities, knowledge, and skills and the demands of the job they perform. Person-job fit has a significant impact on employee performance, where a good fit can improve overall performance (Widyana & Bagia, 2. Person-job fit refers to the compatibility between an individual's knowledge, skills, and abilities with the demands of their job, which positively contributes to performance (Osayande & Okolie, 2. According to research by (Rajper et al. , 2. person-job fit is influenced by several factors, including the alignment between educational background and current job, the match between job tasks and employee expectations, and working conditions and environment. The alignment between an employee's educational background and their current job can affect person-job fit because it is crucial to ensure that employees possess the knowledge and skills derived from their education to perform their duties effectively. When the job matches the employee's educational background, they tend to feel more competent and confident in carrying out their tasks (Ambarwati, 2. The compatibility between tasks and employee expectations also affects person-job fit, as employees become more comfortable and motivated to perform their work. (Sayuga et al. , 2. state that person-job fit occurs when the needs, desires, or preferences of employees are met by the work they do. Working conditions and environment can influence person-job fit because a workplace that aligns with the companyAos values, principles, and culture can enhance employee adaptability and performance. In a supportive and conducive company environment, employees are more likely to complete their tasks and achieve company goals with commitment and integrity (Gunawan & Alfiyah, 2. Micro. Small, and Medium Enterprises (MSME. are productive economic activities carried out by individuals or business entities that have a relatively substantial amount of capital but face limitations in expanding their businesses. They are not partnerships owned by corporations or cooperatives (Putra & Holisoh, 2. MSMEs also serve as catalysts in driving the wheels of the local economy. By offering unique and diverse products and services. MSMEs help enrich local markets, attract tourists, and promote the growth of related sectors such as tourism, handicrafts, and culinary businesses. (Vinatra et al. , 2. explains in his research that Micro. Small, and Medium Enterprises (MSME. play a significant role in driving the national economy. They contribute to tax revenues and national income, which can be allocated to fund essential sectors such as education, healthcare, infrastructure, and other public 3390 | P a g e https://dinastipub. org/DIJEFA Vol. No. 4, 2025 In addition. MSMEs contribute to local economic growth by increasing production and household income, as well as assisting in diversifying the economic structure through the creation of various business sectors. Through successful ventures. MSMEs can also improve income and purchasing power within communities, contributing to better living standards and overall quality of life. They add value to the economy by producing a wide range of goods and services and providing opportunities for innovation, skill development, and job creation especially in the informal sector which helps reduce unemployment and economic inequality while providing economic access to disadvantaged groups. Bakpia Pathok 25 is one of the most well-known Micro. Small, and Medium Enterprises (MSME. in Yogyakarta. Despite its popularity and long-standing reputation, the business currently faces several internal challenges, particularly related to improving employee One of the main issues observed at Bakpia Pathok 25 Pathok Jaya is the mismatch between employeesAo educational backgrounds and the job roles they are assigned to. This discrepancy has had a direct impact on their work performance. Many employees in the production, administration, and marketing divisions lack the educational background or relevant skills required for their current roles. As a result, their efficiency tends to be low, technical understanding is limited, and work-related stress increases. These factors collectively hinder the achievement of optimal performance levels within the company. For instance, several employees are currently working in positions that are not aligned with their academic Mrs. Suminah, with only a junior high school education, works in the production Mrs. Siti Ngaisah, who graduated from a vocational high school, is placed in Mrs. Nurcahyati, also with a vocational high school background, works in Mrs. Martini, a senior high school graduate, handles administrative tasks, and Mr. Nurholis, who also has a junior high school background, is assigned to the production division. These examples reflect a broader pattern of educational mismatch that continues to affect operational effectiveness. Although the company leadership has implemented transformational leadership strategies to motivate and support employees, the stress resulting from the misalignment between educational background and job responsibilities still negatively affects their overall performance. This situation highlights the importance of considering employee qualifications and competencies when assigning job roles to optimize productivity and reduce work-related pressure. The researcher believes that power distance can serve as a moderating variable that strengthens the influence of person-job fit on employee performance. It is thought to help employees accept and adapt to the mismatch between their educational background and the work they are assigned. In a work environment characterized by high power distance, employees are generally more accepting of such mismatches and are less likely to let them affect their performance. In contrast, in low power distance environments, stress caused by job mismatches tends to have a more negative impact on employee performance. Previous studies have examined the influence of person-job fit, transformational leadership, and power distance on performance individually. However, there appears to be a gap in research that integrates all three variables in a single framework. Therefore, this study aims to fill that gap by simultaneously analyzing the effects of person-job fit and transformational leadership on performance, and by exploring how power distance moderates the relationship between these METHOD This study employs a quantitative method with a causal approach, aimed at testing the cause-and-effect relationships between variables. This approach is used to determine the influence of the independent variables person-job fit and transformational leadership on the dependent variable, namely performance, while also considering the moderating role of power 3391 | P a g e https://dinastipub. org/DIJEFA Vol. No. 4, 2025 The method is objective, deductive, and relies on numerical data to test predetermined concepts and hypotheses. The population of this study consists of all 200 employees of Bakpia Pathok 25, with a sample of 134 respondents drawn proportionally from the production, sales, administration, and supervisory divisions. Data collection was conducted through a questionnaire method, in which a set of structured questions was distributed to the respondents to obtain relevant data. The questionnaire served as the main instrument to systematically gather information needed to answer the research questions and test the hypotheses. The data analysis was carried out quantitatively through a series of systematic stages, beginning with an analysis of respondent characteristics and descriptive statistics. This was followed by convergent validity testing, discriminant validity testing, reliability testing, and model fit testing. Hypothesis testing was performed using the T-test to assess the partial effects of each independent variable on the dependent variable, and the F-test to evaluate the simultaneous effects of all independent variables. Lastly, the coefficient of determination (RA) was used to measure how well the model explains the variance in the dependent variable. RESULTS AND DISCUSSION Respondent Characteristics To identify the characteristics of the respondents in this study, the researcher used percentage analysis. The descriptive profile of the respondents includes gender, educational background, current job position, and length of employment. Table 1. Distribution of Respondents by Gender Gender Frequency Percentage Male Female Total Based on Table 1, it can be seen that the majority of respondents were female, totaling 91 individuals or 67. This indicates that most of the employees at Bakpia Pathok 25 Pathok Jaya are women. Table 2. Distribution of Respondents by Last Educational Background Education Level Frequency Percentage Elementary School Junior High School Senior High School or equivalent Diploma (D. BachelorAos Degree (S. Total From Table 2, it is evident that the majority of respondentsAi106 individuals . 10%)Ai had a final educational background of senior high school or its equivalent. This shows that most employees at Bakpia Pathok 25 Pathok Jaya completed their education at the high school level. Table 3. Distribution of Respondents by Current Job Position Job Position Frequency Percentage Production Sales Promotion Girl (SPG) Sales Promotion Boy (SPB) Administration Total 3392 | P a g e https://dinastipub. org/DIJEFA Vol. No. 4, 2025 Table 3 shows that most respondents held the position of Sales Promotion Girl (SPG), totaling 64 individuals . 76%). This indicates that the majority of employees at Bakpia Pathok 25 Pathok Jaya work as SPGs. Table 4. Distribution of Respondents by Length of Employment Length of Employment Frequency Percentage 1Ae5 Years 6Ae10 Years More than 11 Years Total According to Table 4, the majority of respondentsAi105 individuals . 36%)Aihave been employed for 1 to 5 years. This suggests that most employees at Bakpia Pathok 25 Pathok Jaya have relatively short to medium work experience within the company. Convergent Validity Test The convergent validity test was conducted to determine whether each indicator is capable of measuring its intended construct. The results of the outer loading test are shown in the table below: Indicator IPJF1 IPJF2 IPJF3 IPJF4 IPJF5 IPJF6 IPJF7 IPJF8 ITL1 ITL2 ITL3 ITL4 ITL5 ITL6 ITL7 ITL8 IP2 IP3 IP4 IP5 IP6 IP7 IP8 IP9 IPD1 IPD2 IPD3 IPD4 IPD7 IPD8 Z y X1 Z y X2 Table 5. Oter Loading Test Results (All values > 0. Z y X2 Z y X1 3393 | P a g e https://dinastipub. org/DIJEFA Vol. No. 4, 2025 Based on the test results, all indicator loadings are greater than 0. 70, indicating that all indicators meet the requirements for convergent validity and are therefore considered valid. Discriminant Validity Test Discriminant validity refers to the extent to which a measurement tool is able to distinguish between different constructs, ensuring that the correlation between constructs is not too high, which could suggest they are measuring the same thing (Sukamdani et al. , 2. Table 6. Discriminant Validity Test Results Based on the table above, the square root of the Average Variance Extracted (AVE) for each variable is greater than the correlation with other constructs. This confirms that discriminant validity is achieved for all variables. Reliability Test The reliability test is a fundamental step in research and measurement used to assess the consistency and stability of an instrument. Its purpose is to ensure that the results obtained are dependable and replicable under similar conditions. According to Wau et al. , each variable is considered valid if the factor loading is greater than 0. Furthermore, reliability is confirmed through CronbachAos Alpha and Composite Reliability. Variable Table 7. Reliability Test Results CronbachAos Alpha Composite Reliability The results indicate that all variables have CronbachAos Alpha and Composite Reliability values above 0. 70, confirming that all constructs used in this study are reliable. Model Fit Test The model fit test is conducted to determine how well the proposed model fits the actual Several goodness-of-fit indicators are used in this study, including SRMR, d_ULS, d_G. Chi-square, and NFI. Fit Index SRMR d_ULS Chi-square NFI Table 8. Model Fit Results Saturated Model Estimated Model Based on the table, the SRMR value of 0. 073 indicates an adequate model fit. The relatively small difference between the Chi-square values of the saturated and estimated models suggests that the model structure aligns well with the observed data. The NFI (Normed Fit Inde. value of 0. 742 falls within an acceptable range, although it has not reached the ideal 3394 | P a g e https://dinastipub. org/DIJEFA Vol. No. 4, 2025 Additionally, the d_ULS and d_G values further support the conclusion that the model demonstrates a reasonable fit. Therefore, the model is considered appropriate for further Evaluation of the Measurement Model (Inner Mode. R-Square The R-square value indicates the extent to which the independent variables explain the variance of the dependent variable in a regression or structural model. Table 9. R-Square Results Variable R-square Adjusted R-square The R-square value for the Performance variable (Y) is 0. 267, which is greater than the R-table value of 0. This means the model is considered strong, as the R-calculated value exceeds the R-table threshold . 267 > 0. , indicating a meaningful proportion of variance in performance is explained by the predictors. Figure 1. Structural Model of Algorithm Testing F-Square The F-square test is used to assess the effect size of each independent variable on the dependent variable within the PLS-SEM inner model. It measures how much the inclusion of a particular variable increases the R-square value of the dependent variable. Table 10. F-Square Results Variable F-square Z y X1 Z y X2 From the results above, it can be concluded that the F-square value for X1 is 0. indicating no significant effect on the performance variable (Y). The variable X2 shows an Fsquare of 0. 168, suggesting a moderate effect. For the moderating effects. Z y X1 and Z y X2 3395 | P a g e https://dinastipub. org/DIJEFA Vol. No. 4, 2025 have F-square values of 0. 015 and 0. 017 respectively, both categorized as small effects. This indicates that the moderating role of power distance in this model is weak and limited in its impact on performance. Hypothesis Testing Path X1 Ie Y X2 Ie Y ZIeY Z y X1 Ie Y Z y X2 Ie Y Table 11. Hypothesis Testing Results STDEV O/STDEV P Values Description Not Significant Significant Significant Not Significant Not Significant Based on the table above, the following conclusions can be drawn: Hypothesis H1, which posits that person-job fit has a significant effect on performance, is not supported by the data. The calculated T-statistic is 0. 524 with a p-value of 0. > 0. , indicating that person-job fit does not have a statistically significant influence on employee performance. Hypothesis H2, which states that transformational leadership influences performance, is supported by the data. The T-statistic is 4. 765 with a p-value of 0. < 0. , showing a positive and significant effect of transformational leadership on performance. Hypothesis H3, which suggests that power distance moderates the effect of person-job fit on performance, is not supported. The T-statistic is 1. 109 with a p-value of 0. > . , indicating that power distance does not significantly moderate the relationship between person-job fit and performance. Hypothesis H4, which proposes that power distance strengthens the effect of transformational leadership on performance, is also not supported. The T-statistic is 173 with a p-value of 0. > 0. , implying that power distance is not a significant moderating variable in the relationship between transformational leadership and Figure 2. Structural Model of Hypothesis Testing 3396 | P a g e https://dinastipub. org/DIJEFA Vol. No. 4, 2025 This figure illustrates the structural model used to test the hypotheses. The diagram visually represents the relationships between variables, including direct effects (X1. X2. Z Ie Y) and moderating effects (Z y X1. Z y X2 Ie Y). Based on the statistical testing results, only transformational leadership and power distance independently have a significant impact on employee performance, while the moderation effects were not found to be significant. The Influence of Person-Job Fit on Performance Based on the results of the hypothesis testing using SmartPLS version 4. 2, it was found that Person-Job Fit does not have a significant influence on the performance of employees at Bakpia Pathok 25 Pathok Jaya. This is evidenced by the t-statistic value of 0. and a p-value of 0. > 0. Therefore, any increase or decrease in person-job fit among the employees does not have a significant impact on performance. This result aligns with Table 2, which shows that the majority of employees at Bakpia Pathok 25 Pathok Jaya have an educational background of junior or senior high school, whereas their job responsibilities often require higher technical or administrative skills. The mismatch between the employeesAo educational background and the job demands leads to a low degree of fit between the individual and the job, ultimately rendering the personjob fit variable less relevant in directly influencing performance. Moreover, descriptive analysis revealed that only 16. 42% of respondents agreed with the statement AuI am very satisfied with the job I am assigned toAy. This indicates that the level of person-job fit at Bakpia Pathok 25 Pathok Jaya is relatively low, where the majority of employees do not yet feel an optimal match between their abilities, personal values, and job expectations. The findings of this study contrast with previous research, such as that conducted by (Rajper et al. , 2. which showed that person-job fit has a positive and significant influence on performance. This suggests that the influence of personjob fit on performance is not absolute, but highly dependent on organizational context, job structure, and work culture. The Influence of Transformational Leadership on Performance Based on the results of hypothesis testing using SmartPLS version 4. 2, it was found that Transformational Leadership has a positive and significant effect on the performance of employees at Bakpia Pathok 25 Pathok Jaya. This is indicated by a t-statistic value of 4. and a p-value of 0. < 0. Therefore, any increase or decrease in transformational leadership is expected to have a significant positive impact on employee performance. In the descriptive analysis results, the statement AuMy leader can be a role model for meAy received an agreement response from 25. 12% of respondents. This indicates that the leadership style at Bakpia Pathok 25 Pathok Jaya is well accepted by employees, and leaders are viewed as role models in carrying out work responsibilities. These findings are consistent with previous research, such as that conducted by (Karyono & Jimad, 2. which demonstrated that transformational leadership has a positive and significant influence on performance. This suggests that leaders who are able to provide motivation, inspiration, and show concern for the personal development of their subordinates can effectively drive overall improvements in employee performance. The Moderating Effect of Power Distance on the Relationship Between Person-Job Fit and Performance Based on the results of hypothesis testing using SmartPLS version 4. 2, it was found that power distance, as a moderating variable, does moderate but does not strengthen the relationship between person-job fit and employee performance at Bakpia Pathok 25 Pathok Jaya. This is indicated by a t-statistic value of 1. 109 and a p-value of 0. > 0. 3397 | P a g e https://dinastipub. org/DIJEFA Vol. No. 4, 2025 Therefore, any increase or decrease in power distance among employees at Bakpia Pathok 25 Pathok Jaya tends to negatively impact the relationship between person-job fit and Descriptive analysis further supports this finding, with the statement AuI feel comfortable with the power differences between leaders and subordinatesAy receiving a strongly disagree response from 50. 71% of respondents. This indicates that the existence of hierarchical power differences at Bakpia Pathok 25 Pathok Jaya contributes to employee discomfort in the workplace, which, as explained in the person-job fit framework, can lead to a decline in These findings are in line with previous studies, such as that by (Adamovic, 2. , which revealed that power distance has a negative and insignificant effect on the relationship between person-job fit and performance. However, this contradicts research conducted by (Al-Shibami et al. , 2. which demonstrated that power distance has a positive and significant influence on the same relationship. This discrepancy in findings is most likely due to differences in organizational cultural contexts, hierarchical structures, and perceptions of power in the respective workplaces. The Moderating Effect of Power Distance on the Relationship Between Transformational Leadership and Performance Based on the results of hypothesis testing using SmartPLS version 4. 2, it was found that power distance, as a moderating variable, does moderate but does not strengthen the relationship between transformational leadership and employee performance at Bakpia Pathok 25 Pathok Jaya. This is indicated by a t-statistic value of 1. 173 and a p-value of 0. > Therefore, changes in the level of power distance whether increasing or decreasing negatively impact the relationship between transformational leadership and performance. In the descriptive analysis, the statement AuI always respect my leader's decisions even if I disagree with themAy received a strongly disagree response from 35. 07% of respondents. This suggests that a highly hierarchical power structure within the organization may hinder the effectiveness of transformational leadership, which inherently emphasizes two-way communication, active participation, and individual development. When power distance is too high, employees tend to be passive and hesitant to express ideas or feedback, thereby weakening the transformational process that relies on innovation and involvement. These findings are consistent with previous research by (Luo et al. , 2. which indicated that power distance has a negative and insignificant effect on the relationship between transformational leadership and performance. However, this contradicts earlier findings by (AlShibami et al. , 2. which found that power distance positively and significantly influences this relationship. The contrast in these findings highlights that the moderating effect of power distance is highly context-dependent, particularly on organizational culture and hierarchical structure where the leadership style is applied. CONCLUSION Based on the results of data analysis obtained from the research on employees of Bakpia Pathok 25 Pathok Jaya, several important findings can be highlighted regarding the relationships among the studied variables. First, the person-job fit variable was found to have a negative influence on employee performance. This indicates that a decrease in the alignment between an individual and their job does not contribute positively to performance in fact, it can hinder productivity. Second, transformational leadership was shown to have a positive impact on employee performance. This means that the stronger the implementation of transformational leadership, the greater the improvement in employee Conversely, if this leadership style weakens, it will negatively affect work 3398 | P a g e https://dinastipub. org/DIJEFA Vol. No. 4, 2025 Third, the power distance variable, acting as a moderating factor, was found to have an effect, but it did not strengthen the relationship between person-job fit and This suggests that a low power distance within the organization does not automatically mitigate the negative impact of job-person mismatch on performance. Fourth, power distance also did not enhance the relationship between transformational leadership and employee performance. Although it has its own influence, a low power distance in the organization does not significantly contribute to increasing the effect of transformational leadership on work performance. Thus, managing power distance within an organization remains important, but it cannot be relied upon as the primary factor in strengthening the relationship between leadership and performance. REFERENCE