Exploring the Impact of Leadership Style and Organizational Culture on Turnover Intention in the Semarang City Public Service Sector through Structural Equation Model Analysis

American Journal of Humanities and Social Sciences Research (AJHSSR) 2024
A J H S S R J o u r n a l P a g e | 119
American Journal of Humanities and Social Sciences Research (AJHSSR)
e-ISSN :2378-703X
Volume-08, Issue-06, pp-119-124
www.ajhssr.com
Research Paper Open Access
Exploring the Impact of Leadership Style and Organizational
Culture on Turnover Intention in the Semarang City Public
Service Sector through Structural Equation Model Analysis
Tanthowiyana Zulfaturri'ayah1*
, Jeriska Wahyuningtyas2
, Mulyono3
, Edy
Raharja4
1,2,3,4
Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia
ABSTRACT : This study aims to explore the impact of leadership style and organizational culture on
Turnover Intention in public services in Semarang City, using Structural Equation Model (SEM) Analysis. Data
was collected from 100 respondents working in the Semarang City public service sector through questionnaires
distributed online. SEM analysis is used to examine the relationship between variables of leadership style,
organizational culture, and turnover intention, as well as identify possible effect pathways between these
variables. The results of the analysis showed that leadership style had a significant influence on turnover
intention. Organizational culture was found to have a significant influence, where cultures that support stability,
hierarchy, and security tend to reduce the intention to move employees. In conclusion, this study confirms the
importance of leadership style and organizational culture in influencing turnover intention in Semarang City
government agencies. The results of this study can be the basis for the development of human resource
management strategies that are more effective in retaining employees and improving the performance of
government organizations. The practical implications of this research were also discussed to assist managers and
stakeholders in improving employee retention and service quality in the Semarang City public service sector.
KEYWORDS :Leadership Style, Organizational Culture, Turnover Intention
I. INTRODUCTION
In an era of evolving organizational dynamics, the success of an institution, especially in the public
service sector, is not only determined by solid policies and infrastructure, but also by the quality of its human
resources [1], [2]. Key factors that are highlighted in human resource management are the level of job
satisfaction and the intention to move (turnover intention) from employees [3]. In Semarang City, as in many
other cities, government agencies are increasingly aware of the importance of managing these factors well in
order to achieve optimal organizational performance. In the context of human resource management, the
growing issue is the level of job satisfaction and the intention to move (turnover intention) from employees.
This is a major concern for organizations, especially in government agencies in the city of Semarang. High
levels of job satisfaction not only have a positive impact on individual performance, but also on overall
organizational performance[4],[5]. Employees who are satisfied with their work tend to be more productive,
dedicated, and contribute maximally to the achievement of organizational goals [6]. However, when job
satisfaction decreases, it can cause a decrease in productivity, service quality, and increase absenteeism and
turnover intention.
In the city of Semarang, a deep understanding and handling of issues of job satisfaction and turnover
intention in government agencies is becoming increasingly crucial. As part of public services, government
agencies have a great responsibility in meeting the needs of the community[7]. Employees who are satisfied
with their work will be able to provide better services to the community, strengthen legitimacy and trust in the
government, and support the creation of effective and efficient government [8]. Therefore, effective
management of human resources in government agencies, including efforts to increase job satisfaction and
reduce turnover intention, is an important step in achieving development goals and quality public services in the
city of Semarang. These efforts not only help improve the overall performance of the organization, but are also a
strategic investment in building a positive image and public trust in the Semarang city government.
Previous research has highlighted the relationship between leadership style, organizational culture, and
intent to move across multiple organizational contexts. Skopak & Hadzaihmetovic (2022) argue that an effective

leadership style can affect an employee's level of job satisfaction, which in turn affects the intention to
move[10]. Likewise, organizational culture has been shown to play an important role in shaping employee
behavior and attitudes towards their work and organization[11]. A number of important findings from the
literature highlight the relationship between leadership style and intention to move. According to research by
[12]. transformational leadership styles, which include inspiration, idealized influence, individualized
consideration, and intellectual stimulation, tend to be negatively associated with the intention to move, while
transactional leadership styles, which involve reward and punishment, do not have a significant influence on the
intention to move.
Research by Hair et al., (2021) adds an interesting dimension, by showing that transformational
leadership styles that include inspiration, idealistic influence, individualized service, and intellectual stimulation
tend to have a negative relationship with the intention to move. Meanwhile, transactional leadership styles
involving rewards and punishments did not have a significant influence on the intention to move. The
implications of this finding are particularly relevant in the context of government agencies in Semarang City,
where appropriate human resource management strategies can have a major impact on employee retention and
the quality of public services provided. Thus, further research into the interaction between leadership style,
organizational culture, and intention to move can provide valuable insights for practitioners and policymakers in
an effort to improve organizational performance and employee satisfaction in the public service sector.
Organizational culture has a significant influence on the intention to move. Organizational cultures that
promote values such as stability, hierarchy, and security tend to reduce the intention to move employees[14].
Conversely, a more open, innovative, and individual development-oriented organizational culture can reduce job
satisfaction levels and increase the intention to move [15]. This study aims to investigate the influence of
leadership style and organizational culture on the intention to move within the Semarang city government. with
a focus on the role of leadership style and organizational culture as well as the possible interactions between the
two. By understanding this dynamic, it is expected to identify effective management strategies to minimize
turnover intention and improve the performance and sustainability of government agencies in the city of
Semarang.
II. METHODS
2.1 Research design
This study used an ex-post facto quantitative design, where the hypothesis was tested using Partial Least
Squares Structural Equation Modelling (PLS-SEM) with the Smart-PLS application version 3.0. Data analysis is
carried out in two sequential steps. First, a reflective evaluation is performed to assess the validity and reliability
of the indicators of each variable. Secondly, formative evaluations are carried out to ascertain the significance of
the relationship between variables and to determine the acceptance or rejection of hypotheses.
2.2 Participants
The population in this study is Semarang city government agencies. The sample was randomly selected
from employees of Semarang city government agencies, namely the State High Court, UIN Walisongo, the City
Education Office totaling 100 respondents (Hair et al., 2019).The collected data were analyzed using the Partial
Least Squares Structural Equation Modelling (Smart-PLS) method to evaluate the relationship between the
independent variable (leadership style and organizational culture) and the dependent variable (intention to
move). The Smart-PLS method was chosen because it can handle complex models and allows testing cause-and-
effect relationships as well as interactions between variables more efficiently. Interaction analysis was
conducted to understand how leadership style and organizational culture interact in influencing the intention to
move employees in Semarang city government agencies.
2.3 Data collection techniques and instruments
Data collection was carried out using questionnaires with Likert scales. The questionnaire consists of
three variables: leadership style, organizational culture, and turnover intention. The questionnaire was adapted
from relevant research. The questionnaire instrument is adopted from previous research that has been declared
valid and reliable. All questionnaires have been tested, and all items are considered valid and reliable, as
presented in Table 1. Table 1 shows that a construct is said to be reliable if Cronbach's alpha and composite
reliability scores are greater than 0.60. In addition, it is valid if the average extracted variance (AVE) is greater
than 0.50. Validity and reliability indicate that each indicator can take into account the relevant variables.
III. RESULTS AND DISCUSSION
In the context of the interaction between leadership style and organizational culture, the analysis shows
that the two interact significantly in influencing the intention to move employees in Semarang City government
agencies. These results confirm the importance of considering these two factors simultaneously in human

resource management in government agencies. Based on the results of the questionnaire, as many as 100
respondents participated.
The loading factor value is said to be valid if it is more than 0.7 (>0.7) [16]. The test results are as
follows:
Table 1. Value Loading Factor
Variable Measurement Indicators Factor Loading Validity
Organizational culture Consult with subordinates (GK-1) 0.822
Valid
Discipline in carrying out duties (GK-2) 0.863
Praising and Appreciating (GK-3) 0.885
Decision (GK-4) 0.844
Supervisory Responsibilities (GK-5) 0.735
Leadership style Innovation and risk-taking (BO-1) 0.817
Attention to detail (BO-2) 0.801
Result-oriented (BO-3) 0.885
Orientation to people (BO-4) 0.908
Team orientation (BO-5) 0.714
Turnover intentions Increased attendance (TI-1) 0.868
Being lazy to work (TI-2) 0.883
Courage to commit an offense (TI-3) 0.769
Increased protests against the leadership
(TI-4)
0.933
Changes in employee behavior (TI-5) 0.902
Source: SmartPLS.30 output result
The results of the validity analysis showed that the indicators on the variables Leadership Style (GK1,
GK2, GK3, GK4, and GK5) Organizational Culture (BO1, BO2, BO3, BO4, BO5) and Turnover Intention (TI1,
TI2, TI3, TI4, TI5) were considered valid because they had a high loading factor. Thus, these findings illustrate
that all indicators have successfully measured the variable in question, and testing can proceed to the next stage.
Table 2. Construct reliability and validity
Cronbach’s
alpha
Rho_A Composite
reliability
Average
variance
extracted
Organizational culture 0.884 0.898 0.915 0.685
Leadership style 0.887 0.888 0.918 0.691
Turnover intentions 0.921 0.924 0.941 0.762
Table 2. indicates that Cronbach's Alpha value is more than 0.7 which means it indicates good
consistency. All variables have an AVE value of more than 0.5 which means that the measurement model has
good construct reliability. Data analysis using Partial Least Squares Structural Equation Modelling (PLS-SEM)
shows that leadership style and organizational culture have a significant influence on employee turnover in
Semarang City government agencies. Based on reflective evaluation, the leadership style variable has
Cronbach's alpha reliability of 0.884 and rho_A reliability of 0.898, while the organizational culture variable has
Cronbach's alpha reliability of 0.887 and rho_A reliability of 0.888. Meanwhile, formative evaluation showed
that both variables had a fairly high composite reliability, namely 0.915 for leadership style and 0.918 for
organizational culture. In addition, the average value of extracted variance (AVE) for both variables was also
quite high, namely 0.685 for leadership style and 0.691 for organizational culture. This indicates that the
variables are valid and can account for the relevant variables.Because all variables are valid and reliable, they
must meet further tests to be used in research. Discriminant validity can be determined by looking at the Fornell-
Larcker Criterion value. Test results in Table 3. indicates that the correlation of the variable with the variable
itself is greater than the correlation of the variable with other variables.
Table 3. Fornell-Larcker Criterion
Organizational culture Leadership style Turnover intentions
Organizational culture 0.830
Leadership style 0.828 0.853
Turnover intentions 0.784 0.831 0.873

Based on the results of the Fornell-Larcker Criterion, it can be interpreted that the organizational culture
variable shows a high level of reliability with a coefficient of 0.830, indicating that the indicators used to
measure organizational culture together are increasingly consistent and valid in reflecting the concept. Similarly,
the leadership style variable showed a very high level of reliability with a coefficient of 0.853, indicating that
these indicators are very effective in measuring the latent variable of leadership style. Finally, the turnover
intention variable also showed high reliability with a coefficient of 0.873, which confirms that the turnover
intention indicator consistently reflects the latent variable. Overall, these findings indicate that the measurement
constructs in this study have a good degree of validity and high consistency in measuring the latent variables
represented by each variable construct.After all question items are declared valid and reliable, structural model
measurements are carried out using the R2
Test to see the ability of a model to explain dependent variables. The
R2
value must exceed 0.50 to see sufficient contribution by a model in explaining the dependent variable.
Table 4. R-square
R-square
Turnover intentions 0.679
Based on the table above, it is known that the R2 value of the Turnover Intention variable is 0.679, this
shows the contribution of the Organizational culture and Leadership style variables to Turnover Intention which
is 67.9% and the remaining 32.1% can be influenced by other variables that are not studied such as Work Life
Balance, Employee Engagement, Workload, Motivation, and others[14], [17]. After obtaining sufficient
information from the R² analysis, the next step is to conduct a hypothesis test to test the significance of the
influence of each independent variable (Organizational culture and Leadership style) on the dependent variable
(Turnover Intention). Test this hypothesis to ascertain whether the observed influence is statistically significant
or not.
Table 5. Path coefficients/direct effect
Original
Sample (O)
Sample
Mean (M)
Standard Deviation
(STDEV)
T Statistics
(|O/STDEV|)
P Values
Leadership style -
>Turnover intentions
0.650 0.652 0.107 6.073 0.000
Leadership style -
>Organizational culture
0.830 0.831 0.032 25.855 0.000
Organizational culture -
> Turnover Intention
0.245 0.244 0.124 1.978 0.049
Table 5. shows the results of hypothesis testing, i.e. bootstrapping resampling test. The hypothesis is
accepted if the t-statistic value is more than 1.96 (>1.96). First, the results showed that the value of leadership
style on turnover intention has a t-statistical value of 6,073 (>1.96) which proves that there is a positive
influence of organizational leadership style on turnover intention, then has a p-value of 0.000 (<0.05) which
means there is a significant influence of leadership style variables on turnover intention. Thus, the first
hypothesis that states leadership style has a positive and significant effect on turnover intention in Semarang
City government agencies is accepted. This result is in line with Iskandar's (2015) research which states that
there is a significant influence of leadership variables on turnover intention who experience problems with high
employee turnover rates, they can consider adopting an effective leadership style and pay attention to factors
that affect employee turnover intentions. Thus, they can create a more stable working environment and
minimize the negative impact of excessive employee turnover.
Second, the results showed that the value of leadership style on organizational culture has a t-statistical
value of 25,855 (>1.96) which proves that there is a positive influence of organizational leadership style on
organizational culture, then has a p-value of 0.000 (<0.05) which means there is a significant influence of
leadership style variables on organizational culture. Thus, the first hypothesis that states leadership style has a
positive and significant effect on organizational culture in Semarang City government agencies is accepted. The
statement is supported by previous research conducted by [19] showing that leadership affects organizational
culture. Therefore, if government agencies in Semarang City want to strengthen a healthy and productive
organizational culture, they can prioritize developing leadership styles that support the core values and identity
of the organization.

Third, the results showed that the value of organizational culture on turnover intention has a t-statistic
value of 1.978 (>1.96) which proves that there is a positive influence of organizational culture variables on
turnover intention, then has a p-value of 0.049 (<0.05) which means there is a significant influence of
organizational culture variables on turnover intention. Thus, the first hypothesis that states organizational culture
has a positive and significant effect on turnover intention in Semarang City government agencies is accepted.
This result is in line with the research of Priyowidodo (2019)[20]which states that there is a relationship
between organizational culture and turnover intention. Therefore, if government agencies in Semarang City
want to reduce the employee turnover rate, they can focus on efforts to strengthen a positive and inclusive
organizational culture. This can be done by promoting open communication, building good working
relationships between colleagues, providing adequate support for career development, and creating a work
environment that takes into account the well-being and needs of employees.
The results of this study corroborate previous findings that highlight the importance of leadership style
and organizational culture in influencing the intention to move employees in various organizational contexts. In
the context of Semarang City government agencies, these findings provide a deeper understanding of the factors
that can affect the stability of the workforce and the quality of public services provided. Effective leadership
styles, which may include transformational leadership styles, have been shown to have a positive impact on
employee job satisfaction and, ultimately, reduce intent to relocate [7], [17]. Similarly, organizational culture
that supports stability, hierarchy, and security, which is also proven to reduce the intention to move employees
[21]. Therefore, Semarang City government management needs to pay attention to and strengthen an effective
leadership style and create a conducive organizational culture to increase employee retention.
In addition, the results of the analysis of the interaction between leadership style and organizational
culture show that effective human resource management requires a holistic approach that considers both factors
simultaneously. This points to the need for integration of human resource management policies and practices
that include the development of leadership styles that are appropriate to the existing organizational culture [22].
Thus, this study makes a significant contribution in strengthening understanding of the relationship between
leadership style, organizational culture, and the intention to move employees in government agencies. The
practical implications of these findings can also help policy makers and practitioners in developing more
effective human resource management strategies in achieving development goals and quality public services in
Semarang City.
IV. CONCLUSION
Leadership style has a significant influence on turnover intention and organizational culture in Semarang
City government agencies. The findings show that an effective leadership style contributes positively to
employee turnover intentions and influences the formation of a healthy organizational culture. This shows the
need for attention to the role of leaders in shaping a stable and productive work environment. In addition,
organizational culture also has a significant impact on employee turnover rates. Thus, government agencies in
Semarang City are advised to strengthen a positive and inclusive organizational culture, as well as adopt a
leadership style that supports the core values of the organization. These measures can help reduce employee
turnover rates and improve overall organizational performance. The implication of this research for Semarang
City government agencies is the importance of the role of leaders in forming a healthy organizational culture
and reducing employee turnover. The need for the development of an inclusive organizational culture and an
effective human resource management strategy is also emphasized. These findings provide the basis for the
development of better intervention strategies in managing employee turnover and improving overall
organizational performance.
There are some limitations to consider in this study. First, this research was conducted in Semarang City
government agencies only, so the generalization of findings to government agencies in other regions may be
limited. In addition, the use of quantitative methods in this study may not be able to explore a deep
understanding of employee turnover dynamics and organizational culture. Second, data collection is done
through questionnaires that can give rise to response bias and do not leave room for deeper understanding of
context. Third, this study did not consider external factors that might influence turnover intention and
organizational culture, such as economic conditions, government policies, or socio-cultural factors. Fourth, the
study also did not consider interventions or other internal factors that could influence the relationship between
leadership style, organizational culture, and turnover intention. For further research, it is recommended to
explore additional factors that affect turnover intention in Semarang City government agencies. Longitudinal
studies and qualitative methods can be used to gain a deeper understanding of the dynamics of employee
turnover. It also needs to involve a wider sample and regional variation for better generalization. The goal is to
develop a more effective human resource management strategy in reducing turnover intention in government
agencies.

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