Purpose: The major purpose of this paper is to examine the mediating role of job competency in the effect of transformational leadership to performance of university lecturers. This article also attempts to examine the direct effect of transformational leadership on job competency and lecturer performance. Design/methodology/approach: For the purpose of the study, quantitative research was applied by conducting an empirical survey with the active participation of 223 lecturers. The survey was conducted in ten high-ranked private universities in Jakarta, Indonesia. Structural equation modeling (SEM) was employed for the measurement and structural model analyses. Findings: The results reveal that the effect of transformational leadership on lecturer performance is expressed only by indirect effect (through lecturer competency). Even though transformational leadership has a positive direct effect on lecturer performance, it is not statistically significant. This paper highlights the crucial role of lecturer competency in the performance of academic scholars. The findings suggest transformational leadership is fundamental in fostering competencies, which, in turn, improve the work performance of university lecturers. Originality/value: This study makes significant contributions to the understanding of the interaction between transformational leadership and performance in higher education, and the statistical significance of lecturer work competency in mediating this relationship. The results of this study provide a snapshot of the contextual mechanism linking transformational leadership and lecturer performance.