Impact of transformational leadership, human capital, and job satisfaction on organizational performance in the manufacturing industry

Abstract

This study aims to examine the factors that affect organizational performance in the manufacturing industry of Bangladesh. This study identifies transformational leadership, human capital, and job satisfaction as significant determinants of organizational performance. The analysis focused on the employees of diverse manufacturing organizations in Bangladesh treated as the targeted population. The data collection was conducted using a survey methodology, wherein a questionnaire was distributed to the participants via postal mail along with a cover letter to enhance comprehension. The ultimate sample consisted of 294 participants, obtained from a pool of 400 individuals who were sent survey questionnaires. The response rate for the survey was 73.5%. Furthermore, a significance level of 5% was employed to assess the hypotheses, and the data pertaining to the research objective of this study were analyzed using SPSS software. The study results indicate that organizational performance is significantly influenced by transformational leadership, human capital, and job satisfaction. These three independent variables explain (R2) 59.6% variance in organizational performance. It is also found that transformational leadership (β-value = 0.443) has the highest impact on the organizational performance of manufacturing firms. This study provides implications for organizational management to improve long-term organizational performance.