Impact of Organizational Culture on Transformational Leadership and Organizational Performance

Abstract

This study employs structural equations modeling via PLS to analyze the 392 valid questionnaires in order to assess the proposed model that is based on the transformational leadership characteristics to identify its effect on the performance of organizations, besides assessing the moderating role of organizational culture in the government sector in the United Arab Emirates. The main independent construct is transformational leadership as a second-order construct of idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. The dependent construct covers organizational performance in terms of learning & growth and internal process. Whereas power distance representing the organizational culture as a moderating variable. The study will describe the relations among the various constructs. Our work has improved our insight into the importance of transformational leadership and organizational culture. Results indicated that the independent variable significantly predicted performance, in addition to power distance having a significant moderating role between transformational leadership and internal process, but not between transformational leadership and learning & growth. The proposed model explained 40.8% of the variance in learning & growth and 29.8% in internal process.