Impact of Leadership Styles on Physical Therapy Clinic Performance: The Mediating Role of Employee Engagement and the Moderating Effect of Organizational Culture

Abstract

This study examines the impact of leadership styles—transformational, transactional, and servant leadership—on the performance of physical therapy clinics in Pakistan, with a focus on the mediating role of employee engagement and the moderating effect of organizational culture. Using a quantitative research design, data were collected from 350 employees across various clinics and analyzed using Smart PLS 4.0. The findings reveal that all three leadership styles positively influence clinic performance, with employee engagement playing a critical mediating role. The study also highlights that organizational culture, whether supportive, hierarchical, or innovative, moderates the relationship between employee engagement and clinic performance. These results suggest that leadership styles that foster employee engagement and align with the clinic's cultural context are crucial for improving key performance indicators such as patient satisfaction, treatment success rates, and financial outcomes. The study's limitations include the use of convenience sampling and a cross-sectional design, which may affect the generalizability and temporal stability of the findings. The practical implications emphasize the need for targeted leadership development and cultural initiatives to enhance clinic performance. This research contributes to the understanding of how leadership styles and organizational culture interact to influence performance in healthcare settings.