Abstract
One of the biggest challenges facing leaders today is the need to develop new business models that stress on effective leadership styles, employee job satisfaction and sustainability without sacrificing the financial and non-financial performance. The objective of this study is to examine the relationship between leadership styles and business performance of multinational companies operating in Malaysia mediated by job satisfaction. A quantitative study, using self-administered structured questionnaire, are issued using purposive sampling via direct distribution to 150 employees working in MNC. Analysis using Statistical Package for the Social Sciences (SPSS) and Partial Least Square (PLS) indicated that spiritual leadership style has the highest significant influence on job satisfaction, followed by authentic leadership style, transformational leadership style, and transactional leadership style. In addition, job satisfaction has a mediating effect on the relationship between each of the leadership styles, namely, transactional, transformational, authentic, and spiritual on business performance.
Highlights
The role of leaders in organizations has shifted and the success of any organization depends on the leadership styles applied by the leaders in current business environment. (Saleem, 2015)
The results showed that transformational leadership style has a greater relationship with job satisfaction than transactional leadership
Out of 300 questionnaires distributed via Multinational Companies (MNC) (250) and public university (50), total 150 completed responses were collected back which have 50% response rate
Summary
The role of leaders in organizations has shifted and the success of any organization depends on the leadership styles applied by the leaders in current business environment. (Saleem, 2015). The role of leaders in organizations has shifted and the success of any organization depends on the leadership styles applied by the leaders in current business environment. The globe has been involved in the globalization effect since last decade. “Global village” is the name that called for the phenomenon of the integration of the world economies. Individual firms and nations judged and assessed globally but act locally in the process of globalization (Onodugo, 2012). Multinational Companies (MNC) are the drivers and agents of globalization. MNC had focus their attention in developing countries like Asian countries, African, and some South American that rich in resources
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