The Effect of Transformational Leadership on Business Performance Through Business Agility Expedition Services

Abstract. The Covid-19 pandemic has put pressure on various business sectors because social distancing policies have resulted in significantly reduced interactions between humans. So expedition services are the choice to meet most human needs. So that the shipping service business is a business that is experiencing rapid development during the pandemic. This study aims to analyze: 1) the influence of transformational leadership on the business performance of courier service, 2) the influence of transformational leadership on the business agility of courier service, 3) the influence of business agility on the business performance of courier service. The analysis technique used Structural Equation Model (SEM) with SmartPLS. The data was collected through the dissemination of questionnaires. Research respondents are shipping service companies with the criteria for joining the Association of Indonesian Express, POS and Logistics Delivery Service Companies (ASPERINDO). The results of the analysis showed that transformational leadership affects performance; transformational leadership affects business agility, and agility affects the company's performance. The results of the statistic test showed that all constituent dimensions of the model are at a high level. It means that the results of this study confirmed that the Covid-19 pandemic becomes a blessing for the courier service business. People's habits of shopping online during the pandemic are believed to not be significantly reduced even though the pandemic is over. This research recommends courier service companies maintain market agility and operational agility by improving digital capacity. In the future, research that involves the digital capability of the courier service business is needed during the pandemic. Keywords: Transformational leadership, agility, performance, courier service, COVID-19