THE INFLUENCE OF LEADERSHIP AND JOB SATISFACTION ON EMPLOYEE INNOVATION

Abstract

The State-owned Electricity Company (PLN) in the Malang area is required to continuously enhance its public services to meet the growing demand for electrical energy. Leaders are expected to demonstrate effective leadership that encourages employee innovation, while employee satisfaction plays a crucial role in motivating such innovative behavior. This study aims to examine the direct influence of leadership and job satisfaction on employee innovation among PLN employees in the Malang Area Office. Using a quantitative approach, the study involved 57 PLN employees selected through a probability sampling method with a simple random sampling technique. Data were analyzed using descriptive analysis with the Three-box Method and inferential analysis through Partial Least Square (PLS). The results reveal that leadership significantly influences employee innovation, job satisfaction positively affects employee innovation, leadership has a significant impact on job satisfaction, and leadership together with job satisfaction influences employee innovation. Leadership also directly contributes to higher employee satisfaction.