Human Capital Sustainability Mediates Responsible Leadership and Organizational Culture Effects on Sustainable Employee Performance

Objective: This study investigates whether human capital sustainability explains how responsible leadership and organizational culture relate to sustainable employee performance among employees of the Communication Department of Bank Indonesia. Methodology: A quantitative cross-sectional census of all 89 employees was conducted using a five-point Likert questionnaire. The 28-item reflective model was analyzed with partial least squares structural equation modeling in SmartPLS 4. Findings: Responsible leadership did not have a significant direct effect on sustainable employee performance (coefficient = 0.072, p = 0.402), whereas organizational culture had a positive and significant direct effect (coefficient = 0.323, p < 0.001). Responsible leadership (coefficient = 0.397) and organizational culture (coefficient = 0.410) positively predicted human capital sustainability, which positively predicted sustainable employee performance (coefficient = 0.448; all p < 0.001). Human capital sustainability fully mediated responsible leadership (indirect coefficient = 0.178, p = 0.001; VAF = 71.2%) and provided complementary partial mediation for organizational culture (indirect coefficient = 0.183, p = 0.002; VAF = 36.1%). Conclusion: Responsible leadership supports sustainable performance when translated into durable employee capability, whereas organizational culture operates both directly and through human capital sustainability.

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Publication Details

Journal
Journal of Sustainable Economic and Business
Published
2026-10-14
DOI
https://doi.org/10.70550/joseb.v3i4.707
Primary Topic
Employee Performance and Management
Type
article
Field-Weighted Citation Impact
0.00
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article

Human Capital Sustainability Mediates Responsible Leadership and Organizational Culture Effects on Sustainable Employee Performance

Wardina Mumtazah, Mafizatun Nurhayati
Journal of Sustainable Economic and Business
Employee Performance and Management
article

Human Capital Sustainability Mediates Responsible Leadership and Organizational Culture Effects on Sustainable Employee Performance

Wardina Mumtazah, Mafizatun Nurhayati
article en

Abstract

Objective: This study investigates whether human capital sustainability explains how responsible leadership and organizational culture relate to sustainable employee performance among employees of the Communication Department of Bank Indonesia. Methodology: A quantitative cross-sectional census of all 89 employees was conducted using a five-point Likert questionnaire. The 28-item reflective model was analyzed with partial least squares structural equation modeling in SmartPLS 4. Findings: Responsible leadership did not have a significant direct effect on sustainable employee performance (coefficient = 0.072, p = 0.402), whereas organizational culture had a positive and significant direct effect (coefficient = 0.323, p < 0.001). Responsible leadership (coefficient = 0.397) and organizational culture (coefficient = 0.410) positively predicted human capital sustainability, which positively predicted sustainable employee performance (coefficient = 0.448; all p < 0.001). Human capital sustainability fully mediated responsible leadership (indirect coefficient = 0.178, p = 0.001; VAF = 71.2%) and provided complementary partial mediation for organizational culture (indirect coefficient = 0.183, p = 0.002; VAF = 36.1%). Conclusion: Responsible leadership supports sustainable performance when translated into durable employee capability, whereas organizational culture operates both directly and through human capital sustainability.

Journal of Sustainable Economic and Business
Mercu Buana University (ID)
Openalex Percentile: Top 2%
Employee Performance and Management
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