The Role of Work Discipline as a Mediator Between Leadership Style and Employee Performance: A Case Study of PT. Bandar Victory Shipyard, Batam, Indonesia

This study investigates the influence of leadership style on employee performance, the impact of leadership style on work discipline, the effect of work discipline on employee performance, and the mediating role of work discipline in the relationship between leadership style and performance at PT Bandar Victory Shipyard. The research involved a population of 83 production employees, with data collected through a structured questionnaire. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that leadership style has a significant positive effect on both employee performance and work discipline. Additionally, work discipline significantly contributes to enhancing employee performance. The findings also demonstrate that work discipline acts as a mediating variable in the relationship between leadership style and employee performance. These results highlight the critical role of leadership in shaping employee behavior and organizational outcomes. This study suggests that organizations should focus on developing effective leadership practices that emphasize discipline and accountability to improve overall performance by implementing leadership training programs, establishing clear behavioral standards, and reinforcing disciplinary frameworks are key strategies for strengthening organizational performance. Future research should incorporate additional variables such as motivation, organizational culture, or job satisfaction, and apply longitudinal approaches to examine the long-term effects of leadership interventions.