The Influence of Delegation Authority and Transformational Leadership on Individual Performance by The Existence of Individual Adaptability as Mediating Variable

The objective of this study is to investigate the impact of transformational leadership (TL) and delegation of authority (DA) on individual performance (IP) through the mediating role of individual adaptability (IA) at PLN Indonesia Power, a subsidiary of the state-owned company PT. PLN. As a power plant operator and energy solution developer, PT. PLN Indonesia Power is facing multiple challenges due to the rapidly evolving business environment, including the global target to accelerate the adoption of renewable energy, the demand for advanced technologies to enhance power supply and distribution efficiency, and the company is facing a significant decline in market share, falling from 48.92% in 2003 to 19.1% in 2021, according to the annual report of PLN Indonesia Power. To analyze the data in this research, descriptive and inferential statistical analyses were conducted using SPSS and SmartPLS 4 software. The study's results indicate a statistically significant positive impact of transformational leadership and delegation of authority on individual adaptability, and of transformational leadership and individual adaptability on individual performance. Furthermore, individual adaptability plays a positive significant mediating role between delegation of authority and transformational leadership on individual performance at PLN Indonesia Power. This study recommends that organizations invest in leaders who communicate a clear and positive vision of the future, encourage innovative problem-solving approaches, and foster trust, involvement, and cooperation among team members. Additionally, organizations should prioritize developing individual adaptability and delegation of authority to enhance their market share, the reliability of the electricity supply, and to develop renewable energy.