The Effect of Leadership and Work Culture on Employee Performance with Work Motivation as a Mediation at Pt. Putra Arthamas Global Bali

Studies Management and Finance Economics, of Journal 0504-2644 (online): ISSN 0490,-2644 (print): ISSN 5202 October 10 Issue 80 Volume 8.317 Factor: Impact ,22-i10-10.47191/jefms/v8 DOI: Article 2967 -6780 No: Page JEFMS, Volume 08 Issue 10 October 2025 www.ijefm.co.in Page 6780 The Effect of Leadership and Work Culture on Employee Performance with Work Motivation as a Mediation at Pt. Putra Arthamas Global Bali Ni Made Suyani 1, Gregorius Paulus Tahu2, I Gusti Ngurah Bagus Gunadi3, ⁠Nengah Landra4 1,2,3,4Faculty of Economics and Business Mahasaraswati University, Denpasar Bali ABSTRACT: This study aims to analyze the influence of leadership and work culture on employee performance with work motivation as a mediating variable at PT. Putra Arthamas Global Bali. Employee performance is a major concern in the sustainability of the company, which is influenced by various internal factors, including leadership, work culture, and work motivation. Respondents in this study were employees at PT. Putra Arthamas Global Bali . The number of respondents in this study was 73 respondents using all members of the population . This study used Structural Equation Modeling (SEM) analysis of the SmartP LS program . The results of this study indicate that leadership and work culture have a positive and significant influence on work motivation. Leadership and work motivation have a positive and significant influence on employee performance, but work culture has no effect on employee performance. Work motivation partially mediates the relationship between leadership and performance, while work motivation fully mediates the relationship between work culture and performance. KEYWORDS: leadership, work culture , work motivation , and employee performance 1. INTRODUCTION Human resources ( HR ) are element main in every organization , because role and contribution very determine success achievement objective organization . Without the existence of quality human resources , organizations No will capable operate optimally . By because that , management sued For No only recruiting power work , but also manage , develop , and maintain employees to remain productive , motivated , and contribute maximally ( Purwanto et al., 2021) . Management human resources ( HR ) is approach strategic management connection work , training , evaluation , and motivation employees to support effectiveness organization (Dessler, 2019). Modern HR No Again just administration personnel , but rather covers issues complex like leadership , culture work , motivation , and development competence . Performance employee become Wrong One indicator success of HR, because reflect how big is the contribution employee to achievement objective organization ( Afandi , 2018). High performance shown through quality , quantity , accuracy time , effectiveness , and independence work ( Bintoro , 2019). The low performance will impact on the decline productivity , satisfaction customers , even profit organization ( Christiadi , 2020). For reach optimal performance is required management factors internal factors that influence behavior work , such as leadership style , culture work and motivation work . Leadership is ability individual For influence and direct member group in reach objective together (Robbins & Coulter , 2016). The right leadership style can create climate positive and encouraging work motivation as well as performance employees ( Fahmi , 2021). According to research conducted by Fazira , et al., (2019), Rivaldo (2020), Sirajuddin et al., (2020), Fahmi et al., (2021), Yustina et al., (2024), Musaid et al., (2024), and Fachrija et al., (2024) showed that leadership own positive and significant influence to performance employees . Different case in point with researchers above , Marjaya (2019), Pradana and Frimayasa (2023), and Febrianti et al., (2024) in his research conclude that leadership influential No influential to performance employees . Different results concluded by Andayani , et al., (2019) who proved that variables leadership influential negative to performance employee . Besides leadership , culture work also becomes factor important in form behavior Work employees . Culture strong work capable form identity , creating norms, and influencing loyalty as well as Spirit work ( Kreitner & Kinicki , 2015). Culture Work can play a role in push performance , According to research conducted by Pradana and Frimayasa (2023), Febrianti et al., (2024), Regen et al., (2021), Sabrina et al., (2023), and Laksono and Inggawati (2024) stated that culture Work influential positive and significant to performance employees . Meanwhile different with study Devita (2020), Tutu et al., (2022), Sirajuddin et al., (2020), and Fahmi et al., (2021) that results study show culture Work No influential to performance employees , things This show that connection The Effect of Leadership and Work Culture on Employee Performance with Work Motivation as a Mediation at Pt. Putra Arthamas Global Bali JEFMS, Volume 08 Issue 10 October 2025 www.ijefm.co.in Page 6781 culture Work with performance employee No always direct and significant . Variable mediation like motivation Work often time play a role in bridge connection said . Motivation Work is encouragement internal or external driving somebody For act to achieve objective certain ( Mangkunegara , 2018). High motivation shown through consistent behavior , enthusiasm in work , and perseverance in face challenges . Motivation is also a reflection from effective leadership and culture supportive work . According to research conducted by Septiananda (2025), Siregar, et al. (2024), and Al-ghozali (2023) show that Work motivation acts as a variable that mediates the indirect influence of leadership and work culture on improving performance. Study This carried out at PT. Putra Arthamas Global Bali or Arthamas Express, a company transportation service providers sea ( fastboat ) operating in the region Bali tourism . Company This emphasize importance discipline , loyalty , and integrity Work . Arthamas Express has book guidelines for employee Guidelines ) & Standards Operating Procedures (SOP) provide Lots information important about company , so that with help book This expected employees can work as much as possible Possible with thus will give income or big profits . This can presented in Table 1 as following : Table 1. Targets and Realization of PT. Putra Arthamas Global Bali Period January - December 2025 Source: PT. Putra Arthamas Global Bali Based on Table 1 shows that company succeed achieve the target during January until December 2024, with achievement highest in June 2024 along with increasing amount traveler during season holiday school . However , the surge request causing workload high , so that cause stress and fatigue in employees . On the other hand , there is decline performance in March and September ( 94% each ) and October (86%) because period the is low season in Bali, with amount tourists are decreasing . In addition it also exists factor other causes occurrence decline income is level absence employees . The following This is level data Absence can seen in Table 2 as following : Table 2. Percentage Level Absence Employees of PT. Putra Arthamas Global Source: PT. Putra Arthamas Global Bali No Bulan Pencapaian Target Persentase 1 Januari 415.000.000Rp 400.000.000Rp 104% 2 Februari 389.000.000Rp 400.000.000Rp 97% 3 Maret 376.000.000Rp 400.000.000Rp 94% 4 April 398.000.000Rp 400.000.000Rp 100% 5 Mei 410.000.000Rp 400.000.000Rp 103% 6 Juni 511.000.000Rp 450.000.000Rp 128% 7 Juli 488.000.000Rp 450.000.000Rp 122% 8 Agustus 476.000.000Rp 450.000.000Rp 119% 9 September 433.000.000Rp 450.000.000Rp 94% 10 Oktober 397.000.000Rp 450.000.000Rp 86% 11 November 415.000.000Rp 450.000.000Rp 104% 12 Desember 451.000.000Rp 450.000.000Rp 113% No Bulan Jumlah Karyawan (Orang) Jumlah Hari Kerja Jumlah Hari Kerja Seharusnya (Hari) Jumlah Hari Kerja Tidak Hadir (Hadir) Jumlah Hari Kerja Sebenarnya (Hari) Persentase Absensi 1 2 3 4 5=3x4 6 7=5-6 8=6/5x100 % 1 Januari 73 27 1.971 25 1.946 1,27 2 Februari 73 24 1.752 20 1.732 1,14 3 Maret 73 27 1.971 27 1.944 1,37 4 April 73 26 1.898 31 1.867 1,63 5 Mei 73 27 1.971 36 1.935 1,83 6 Juni 73 26 1.898 59 1.839 3,11 7 Juli 73 27 1.971 34 1.937 1,73 8 Agustus 73 27 1.971 30 1.941 1,52 9 September 73 26 1.898 57 1.841 3,00 10 Oktober 73 27 1.971 40 1.931 2,03 11 November 73 26 1.898 31 1.867 1,63 12 Desember 73 27 1.971 38 1.933 1,93 317 23141 428 22713 22,19 26,42 1928 35,67 1893 1,85 Jumlah Rata - Rata The Effect of Leadership and Work Culture on Employee Performance with Work Motivation as a Mediation at Pt. Putra Arthamas Global Bali JEFMS, Volume 08 Issue 10 October 2025 www.ijefm.co.in Page 6782 Based on Table 2 can explained level average absence of PT. Putra employees Arthamas Global by 1.85%, still is at in category Good based on tolerance limits organization by 2% and standard Flippo (2020). However , in the month of September level absence classified as tall consequence delay , ceremony religious , and illness , which have an impact on the decline performance employees . The phenomenon that occurred in implementation leadership at PT. Putra Arthamas Global shows existence dissatisfaction internal , in particular from marketing team who feel his contribution No valued although has achieve sales targets . On the other hand , the reservation , crew captain , and porter also demanded the same bonus, so that trigger conflict between employees . Tension This impact on the decline motivation and performance employees . On the other hand otherwise , if the bonus is distributed evenly , this the can burdensome finance company and potential cause loss . In aspect culture work , decline performance company caused by by low harmony connection between employees . Lack of togetherness in finish not quite enough answer , such as delay service the ship and its slowness handling purchase online tickets , causing complaint customers . Things This show that culture work that is not solid participate make things worse quality service and effectiveness settlement problem . The relationship between leadership and motivation work also becomes attention important . The bonus system provided company proven capable increase Spirit Work when the target is achieved . However , the bonus distribution is not evenly cause dissatisfaction and even bring up behavior toxic among employees . Employees who behave negative This can spread rumors , spark conflict , and reduce Spirit Work team . Based on phenomena and gaps study said , researchers interested For study return the influence of leadership style and culture Work to performance employee with motivation Work as variables mediation at PT. Putra Arthamas Global Bali. 2. THEORETICAL AND HYPOTHESIS STUDY 2.1. Foundation Theory This study uses Locke's Goal Setting Theory as the main theory, which emphasizes the importance of the relationship between set goals and resulting performance. This theory explains that employees' understanding of organizational goals will influence work behavior and performance achievement. Individuals who are committed to goals, accompanied by skills and feedback, tend to be more motivated to achieve optimal results. Management, according to Afandi (2018), is a collaborative process to achieve organizational goals through planning, organizing, leadership, and supervision. In the context of this theory, the success of achieving organizational goals is greatly influenced by individual commitment to predetermined goals. Based on the Goal Setting Theory approach , performance is the result of achieving organizational goals, which is strongly influenced by factors such as organizational culture, commitment, and job satisfaction. The higher these three factors, the greater the likelihood of achieving the expected performance. 2.2. Employee performance Every organization is formed to achieve specific goals, and the achievement of these goals is heavily influenced by organizational behavior, including employee performance as one of its main components. Performance reflects how individuals carry out tasks and roles within the organization effectively and responsibly (Gibson et al., 2006). These tasks encompass a series of activities and behaviors expected of an individual in a particular position (Mathis & Jackson, 2006). According to Robbins and Judge (2011), performance also describes the extent to which programs or strategies designed to achieve the organization's vision and mission are successfully implemented. Various other definitions emphasize that performance is the quality and quantity of work results, both at the individual and group levels, in accordance with each individual's authority and responsibility (Mangkunegara, 2005). Thus, it can be concluded that performance is a key indicator of organizational success, which is determined by how well individuals carry out the tasks assigned to them and how closely those work results align with organizational expectations and standards. This study uses employee performance indicators according to Yulianto (2020:9), as follows: Quality , Quantity , Timeliness , Effectiveness , and Independence . 2.3. Work motivation A company's success is largely determined by the extent to which its human resources are optimally utilized, one way being through the work motivation provided by management to employees. Work motivation plays a crucial role in fostering employee enthusiasm and desire to perform tasks according to established standards, especially when their needs are met. According to Rantesalu et al. (2016), work motivation is divided into two types: positive motivation, which drives someone through the hope of recognition or rewards, and negative motivation, which arises from the fear of losing something, such as recognition or a position. This motivation significantly influences employee morale and productivity (Sitopu et al., 2021). Furthermore, Melati et al. (2021) define motivation as an energetic drive that shapes employees' psychological behavior in daily work activities. This drive creates optimal work enthusiasm to achieve organizational goals. Thus, work motivation is a key factor in improving The Effect of Leadership and Work Culture on Employee Performance with Work Motivation as a Mediation at Pt. Putra Arthamas Global Bali JEFMS, Volume 08 Issue 10 October 2025 www.ijefm.co.in Page 6783 workforce performance and productivity. This study uses work motivation indicators according to Benyamin, et al. (2021), as follows: Physiological needs , Safety needs , Social needs or sense of belonging , Self-esteem needs , and Needs actualization self . 2.4. Work Culture Work culture is a system of values, beliefs, and norms shared and practiced by members of an organization as a guideline for behavior and a foundation for dealing with various work situations. According to Davis (2015:78), work culture is a pattern of values and beliefs understood and internalized by an organization as a basis for action. Robbins (2015:289) adds that work culture is a system of shared meaning that distinguishes one organization from another. Work culture also encompasses ways of thinking, feeling, and responding to the work environment that are collectively shared by a group (Kreitner & Kinicki, 2015:79), and involves aspects of ideology, language, and even organizational myths (Soetopo, 2015). Susanto (2015:88) emphasizes that work culture influences patterns of behavior and interactions among organizational members. Furthermore, according to Tobari (2016:49), work culture interacts with the organization's formal system and produces behavioral norms that serve as shared role models (Lestari & Suryani, 2018). Work culture is important because it is a characteristic and strength of the organization in improving employee skills and productivity. Mangkunegara (2015) states that work culture helps employees carry out their responsibilities optimally, while Dessler and Mondy (2015) describe work culture as a learning process designed to improve employees' abilities in carrying out their duties. Thus, work culture is part of the strategy for developing human resource quality to align with changes in the environment, technology, and organizational demands. In this study, the work culture indicators used according to Edison (2016: 131), are as follows: Self-awareness , Aggressiveness , Personality, Performance, and Team Orientation . 2.5. Leadership Leadership is generally understood as the process of influencing, directing, and motivating others to achieve organizational goals. Leaders play a crucial role in motivating and directing group members through example or personal influence. Leadership is not just a position, but also the ability to influence the behavior and activities of others within an organizational context. According to Wahyudi (2019), leadership also encompasses ethical values, namely serving and interacting directly with employees to create a healthier, wiser, and more independent work environment. This concept, known as servant leadership, emphasizes human interaction in the leadership process. Meanwhile, Hasibuan (2005:169) states that leadership is the way someone influences their subordinates to work together productively in achieving organizational goals. Thus, leadership involves the elements of the leader, the group being led, activities, and the goals to be achieved. Each leader has a unique leadership style and approach, depending on the organizational context and the character of the individuals they lead. In this study, the leadership indicators used according to Sinambela (2019) are as follows: Communication style , Motivation , Leadership ability , Decision making , and Positive power. 2.6. Hypothesis A hypothesis is a temporary answer to a problem statement. Because of its temporary nature, its validity must be verified through collected empirical data. The following are the hypotheses in this study: a) H1 : Leadership has a positive influence on work motivation at PT. Putra Arthamas Global Bali b) H2 : Work culture has a positive influence on work motivation at PT. Putra Arthamas Global Bali . c) H3 : Leadership has a positive effect on employee performance at PT. Putra Arthamas Global Bali. d) H4 : Work culture has a positive influence on employee performance at PT. Putra Arthamas Global Bali. e) H5 : Work motivation has a positive effect on employee performance at PT. Putra Arthamas Global Bali. f) H6 : Work motivation can mediate the influence of leadership on employee performance at PT. Putra Arthamas Global Bali. g) H7 : Work motivation can mediate the influence of work culture on employee performance at PT. Putra Arthamas Global Bali . Figure 1. Conceptual Framework of the Research Kepemimpinan Budaya Kerja Kinerja Karyawan Motivasi Kerja H5 H1 H2 H3 H6 H7 The Effect of Leadership and Work Culture on Employee Performance with Work Motivation as a Mediation at Pt. Putra Arthamas Global Bali JEFMS, Volume 08 Issue 10 October 2025 www.ijefm.co.in Page 6784 3. RESEARCH METHODS This study adopted a quantitative methodology approach to provide a more detailed overview of the phenomenon under investigation. The study was conducted at PT. Putra Arthamas Global, Jalan Matahari Terbit, Block B4, Sanur, South Denpasar, Bali. The study was conducted from April 1 to April 30, 2025. The population in this study was all 73 employees of PT Putra Arthamas Global. The sampling technique used in this study was the census method (saturated sample). Where the sample in this study was the number of population in this study was 73 people, then this study was conducted on 73 employees of PT Putra Arthamas Global. The quantitative data required in this study were the number of employees at PT. Putra Arthamas Global Bali, achievement targets, attendance lists and respondents' answers from the questionnaire. The qualitative data in this study were a general description of the research object and the organizational structure of PT Putra Arthamas Global Bali as well as various important explanations related to the research variables. Based on the hypothesis, there are four variables determined in the study, namely leadership, work culture, work motivation and employee performance. These variables are the basis for compiling the research instrument, followed by data collection through a questionnaire method. Quantitative analysis is based on multivariate analysis through the SEM ( structural equation modeling ) equation model through a variance-based or component-based approach known as Partial Least Square (PLS). Furthermore, the data is processed using PLS analysis techniques, processing data obtained by testing descriptive analysis and inferential analysis using SmartPLS 3.2.8 software. The results of the analysis are then interpreted and continued by concluding and providing suggestions. 4. DATA ANALYSIS AND DISCUSSION 4.1. Descriptive Analysis Descriptive analysis provides an overview or description of data seen from the average value ( mean ) regarding leadership, work culture, work motivation and employee performance at PT Putra Arthamas Global Bali, presented in Table 3 below. Table 3. Descriptive Statistics of Leadership, Work Culture, Work Motivation and Employee Performance at PT Putra Arthamas Global Bali Variables Indicator Mark Average Information Leadership How to communicate (X 1.1 ) 4.44 Very good Providing motivation (X 1.2 ) 4.30 Very good Leadership ability (X 1.3 ) 4.42 Very good Decision making (X 1.4 ) 4.34 Very good Positive power (X 1.5 ) 4.53 Very good Culture Work Self-awareness (X 2.1 ) 4.42 Very good Aggressiveness (X 2.2 ) 4.40 Very good Personality (X 2.3 ) 4.49 Very good Performance (X 2.4 ) 4.29 Very good Team orientation (X 2.5 ) 4.52 Very good Motivation Work Physiological needs (Y 1.1 ) 4.42 Very good Need for safety (Y 1.2 ) 4.33 Very good Social needs (Y 1.3 ) 4.30 Very good Self-esteem needs (Y 1.4 ) 4.47 Very good Self-actualization needs (Y 1.5 ) 4.45 Very good Performance Employee Quality (Y 2.1 ) 4.37 Very good Quantity (Y 2.2 ) 4.44 Very good Punctuality (Y 2.3 ) 4.45 Very good Effectiveness (Y 2.4 ) 4.42 Very good Independence (Y 2.5 ) 4.56 Very good Source: Results of data processing (202 5 ) The Effect of Leadership and Work Culture on Employee Performance with Work Motivation as a Mediation at Pt. Putra Arthamas Global Bali JEFMS, Volume 08 Issue 10 October 2025 www.ijefm.co.in Page 6785 Table 3 shows that the most prominent leadership variables at PT. Putra Arthamas Global tend to be positive power, and this shows that leaders at PT. Putra Arthamas Global have very good attitudes. The most prominent work culture variables at PT. Putra Arthamas Global tend to be team orientation, and this shows that the work culture at PT. Putra Arthamas Global has a very good work culture. The most prominent work motivation variables at PT. Putra Arthamas Global tend to be self-esteem needs, and this shows that work motivation at PT. Putra Arthamas Global has very good work motivation. And the most prominent employee performance variables at PT. Putra Arthamas Global tend to be independence, and this shows that employee performance at PT. Putra Arthamas Global has very good employee performance. 4.2. Evaluation of Measurement Model ( Outer Model ) Evaluation of measurement models to test the validity and reliability of indicators that measure constructs or latent variables. Evaluation of the measurement model was carried out by examining the convergent and discriminant validity of the indicators as well as Composite reliability and Cronbach's Alpha for the indicator blocks. a. Convergent Validity Convergent validity is used to validate indicators against their variables, as seen from the loading factor value . This value will be accepted if the loading factor value is above 0.7. For the initial stage of developing a measurement scale, a loading value of 0.50 to 0.60 is considered sufficient ( Chin, 1998 in Ghozali & Latan, 2020:74 ). Table 4. Outer Loading Inspection Results Outer Loading T-Stastistic P Values X1.1 <- X1. Leadership 0.705 9,691 0.000 X1.2 <- X1. Leadership 0.525 5,705 0.000 X1.3 <- X1. Leadership 0.778 10,861 0.000 X1.4 <- X1. Leadership 0.895 35,037 0.000 X1.5 <- X1. Leadership 0.602 5,862 0.000 X2.1 <- X2. Work Culture 0.727 8,659 0.000 X2.2 <- X2. Work Culture 0.880 16,100 0.000 X2.3 <- X2. Work Culture 0.668 4,838 0.000 X2.4 <- X2. Work Culture 0.558 3,967 0.000 X2.5 <- X2. Work Culture 0.760 6,277 0.000 Y1.1 <- Y1. Work Motivation 0.734 11,191 0.000 Y1.2 <- Y1. Work Motivation 0.812 17,527 0.000 Y1.3 <- Y1. Work Motivation 0.709 12,335 0.000 Y1.4 <- Y1. Work Motivation 0.694 8,625 0.000 Y1.5 <- Y1. Work Motivation 0.687 7,832 0.000 Y2.1 <- Y2. Employee Performance 0.797 11,612 0.000 Y2.2 <- Y2. Employee Performance 0.645 6,303 0.000 Y2.3 <- Y2. Employee Performance 0.850 28,655 0.000 Y2.4 <- Y2. Employee Performance 0.661 5,905 0.000 Y2.5 <- Y2. Employee Performance 0.546 4,456 0.000 Source: Results of data processing (202 5 ) Table 4 shows that all indicators measuring the four variables studied ( leadership, work culture, work motivation, and employee performance ) have an outer loading value greater than 0.50. This means that all items used are valid indicators as measures of the four variables studied ( leadership, work culture, work motivation, and employee performance ) . The final check of convergent validity is by looking at the Average Variance Extracted (AVE) value. The use of average variance extracted (AVE) as a criterion for testing convergent validity is calculated as the root mean of the standardized loading factor divided by the number of indicators. According to Ghozali & Latan (2020 : 74) , the frequently used AVE cut-off value is 0.50, where an AVE value of at least 0.50 indicates a good measure of convergent validity . The Effect of Leadership and Work Culture on Employee Performance with Work Motivation as a Mediation at Pt. Putra Arthamas Global Bali JEFMS, Volume 08 Issue 10 October 2025 www.ijefm.co.in Page 6786 Table 5. AVE Examination Results AVE X1. Leadership 0.509 X2. Work Culture 0.528 Y1. Work Motivation 0.531 Y2. Employee Performance 0.502 Source : Data processing results (2025) In Table 5. shows that AVE value of each variable has fulfil value > 0.50. This means can concluded that each variable in study This capable explain values on indicators that measure variables its latent . b. Discriminant Validity Discriminant validity ; conducted to ensure that each concept of each latent variable is different from other variables. Discriminant validity examination uses the results of the Fornell-Larcker Criterion, a model is said to have good discriminant validity if each indicator loading value of a latent variable is > 0.7 or has a square root of AVE that is greater than the correlation value between other latent variable constructs ( Ghozali, 2018:40 ). Table 6. Results of the Fornell-Larcker Criterion Examination X1. Leadership X2. Work Culture Y1. Work Motivation Y2. Employee Performance X1. Leadership 0.713 X2. Work Culture 0.498 0.727 Y1. Work Motivation 0.556 0.507 0.729 Y2. Employee Performance 0.635 0.481 0.679 0.708 Source: Data processing results (2025) Table 6 shows that the Fornell-Larcker Criterion value indicates that the correlation value between constructs has a square root of AVE that is greater than the correlation value between other latent variables and the indicator loading value of all latent variables is > 0.7. This means that it can be concluded that the model has good discriminant validity . c. Reliability Test Composite Reliability and Cronbach's Alpha ; aim to evaluate the reliability value between the indicator blocks of the construct that form it. A construct is declared reliable if the Cronbach's alpha and composite reliability values are above 0.7 ( Ghozali & Latan, 2020:76 ). Table 7. Results of Composite Reliability and Cronbach's Alpha Examination Composite Reliability Cronbach's Alpha X1. Leadership 0.748 0.833 X2. Work Culture 0.775 0.846 Y1. Work Motivation 0.779 0.849 Y2. Employee Performance 0.746 0.831 Source: Results of data processing (202 5 ) Table 7 shows that the composite reliability value of the four latent variables is above 0.70 and the Cronbach's alpha of the four latent variables is above 0.70 so it can be said that the indicator block reliably measures the variables. 4.3. Structural Model ( Inner Model ) After testing the validity and reliability of the Outer Model evaluation , the next step is to analyze the influence between latent variables, which is called the structural model ( inner model ). The inner model can be evaluated using the R2 Determination Coefficient ( RSquare ) and Predictive Relevance Q 2 (QSquare ) The Effect of Leadership and Work Culture on Employee Performance with Work Motivation as a Mediation at Pt. Putra Arthamas Global Bali JEFMS, Volume 08 Issue 10 October 2025 www.ijefm.co.in Page 6787 a. R-square (R 2 ) Testing R2 is used to determine how much an independent variable can explain a dependent variable. The greater the R2 value , the greater the influence of the exogenous latent variable on the endogenous variable. This study used two dependent variables influenced by other variables: credit granting strategy and non-performing loans . According to Ghozali & Latan (2020), the R2 value is 0.75 (strong model), 0.50 (moderate model), and 0.25 (weak model). In several research contexts, the R2 value 0.10, and even lower, is considered satisfactory. Table 8. Examination Results R-square R-Square Y1. Work Motivation 0.362 Y2. Employee Performance 0.542 Source : Data processing results (2025) In Table 8, it shows that motivation Work has an R 2 (RSquare ) value of 0.362 including the model weak which also has the meaning of leadership and cultural variables Work together able to explain motivation variables Work of 36.20 %, the remaining 63.80 % is explained by other variables outside the model. While employee performance has an R2 (R-Square) value of 0.542 , including a moderate model, which also means that the variables of leadership, work culture, and work motivation together are able to explain employee performance variables of 54.20%, the remaining 45.80% is explained by other variables outside the model. b. Q-Square predictive relevance Stone-Geisser Q-square test for predictive relevance and t-test and significance of the path parameter coefficients structural. Qsquare measures how well the value of observations generated by the model as well as its parameters. A Qsquare value greater than 0 (zero) indicates that the model has predictive relevance value, meanwhile Qsquare value less than 0 (zero) indicates that the model lacks predictive relevance . The QSquare calculation is done using the formula: Q 2 = 1 - (1-R 2 1 ) (1-R 2 2 ) So the Q2 value that can be obtained in this study is: Q 2 = 1-[(1-R 1 2 ) (1-R 2 2 )] Q 2 = 1-[(1-0.904) (1-0.980)] Q 2 = 1-(0.638) (0.458) Q 2 = 0.708 From the results of Q 2 above, a value of 0.708 was obtained, which shows evidence that the model has good predictive relevance because the value obtained is more than 0 (zero). 4.4. Hypothesis Testing Hypothesis testing was conducted using the bootstrapping resampling method . This method allows for distribution-free data , does not require the assumption of a normal distribution, and does not require a large sample size. Testing is carried out with a t-test , when a p-value is obtained ≤ 0.05 (alpha 5%) , then it is concluded to be significant, and vice versa. Hypothesis Testing Results No. Relationship between Variables Path Coefficient (Bootstrapping) TStatistics P Values Note Direct Influence 1 X1. Leadership -> Y1. Work Motivation 0.404 3,475 0.001 H 1 accepted 2 X2. Work Culture -> Y1. Work motivation 0.306 2,915 0.004 H 2 accepted 3 X1. Leadership -> Y2. Employee Performance 0.346 3,568 0.000 H 3 accepted 4 X2. Work Culture -> Y2. Employee Performance 0.083 0.775 0.438 H 4 rejected 5 Y1. Work Motivation -> Y2. Employee Performance 0.444 4,242 0.000 H 5 The Effect of Leadership and Work Culture on Employee Performance with Work Motivation as a Mediation at Pt. Putra Arthamas Global Bali JEFMS, Volume 08 Issue 10 October 2025 www.ijefm.co.in Page 6788 No. Relationship between Variables Path Coefficient (Bootstrapping) TStatistics P Values Note accepted Indirect Influence 6 X1. Leadership -> Y1. Work Motivation -> Y2. Employee Performance 0.180 3.134 0.002 H 6 accepted 7 X2. Work Culture -> Y1. Work Motivation -> Y2. Employee Performance 0.136 2,030 0.043 H 7 accepted Source : Data processing results (2025) Table 9. Results testing the hypothesis presented in the description following This : a. Leadership proven to have a positive effect on work motivation . This result is indicated by a positive path coefficient of 0.404 with a T-statistic = 3.475 ( T-statistic > 1.96) and Pvalues = 0.001 (Pvalues < 0.05). so that the hypothesis 1 stated accepted . b. Work culture proven to have a positive effect on work motivation . This result is indicated by a positive path coefficient of 0.306 with a T-statistic = 2.915 ( T-statistic > 1.96) and Pvalues = 0.004 (Pvalues < 0.05), so that hypothesis 2 is stated accepted . c. Leadership proven to have a positive effect on employee performance . This result is indicated by a positive path coefficient of 0.346 with a T-statistic = 3.568 ( T-statistic > 1.96) and Pvalues = 0.000 (Pvalues < 0.05), so that hypothesis 3 is stated accepted . d. Work motivation has not been proven to have a positive effect on employee performance . This result is indicated by a positive path coefficient of 0.083 but a T-statistic of 0.775 ( T-statistic < 1.96) and Pvalues of 0.438 (Pvalues > 0.05), so that hypothesis 4 is stated. rejected . e. Work motivation proven to have a positive effect on employee performance . This result is indicated by a positive path coefficient of 0.444 with a T-statistic = 4.242 ( T-statistic > 1.96) and Pvalues = 0.000 (Pvalues < 0.05), so that the hypothesis 5 stated accepted . f. Work motivation proven to be able to mediate the influence of leadership on employee performance . This result is indicated by a negative path coefficient of 0.180 with a T-statistic = 3.132 ( T-statistic > 1.96) and Pvalues = 0.002 (Pvalues < 0.05), so that hypothesis 6 is stated accepted . g. Work motivation proven to be able to mediate the influence of work culture on employee performance . This result is indicated by a negative path coefficient of 0.136 with a T-statistic = 2.030 ( T-statistic > 1.96) and Pvalues = 0.043 (Pvalues < 0.05), so the hypothesis 7 stated accepted . 4.5. Testing the Mediation Effect of examining this mediation model is to determine whether the intervention of the mediating variable is proven to mediate, whether it is proven to mediate fully ( fully mediated ) or partially ( partially mediated ), or whether it is not a mediating variable. The method for examining this mediation model follows the instructions of Hair et al . ( 2021 ). can be described as follows: First, examine the indirect influence of exogenous variables on endogenous variables (P 1 . P 2 ), then examine the significance of the influence of exogenous variables on endogenous variables (P 3 ). Hair, et al . ( 2021 ) proposed a mediation type test for the use of the PLS-SEM analysis tool as follows :