The Influence of Transformational Leadership on Organization Performance

Abstract

Purpose: The objectives of this study were 1) to determine the direct effect of Transformational Leadership Competency (TLC) and Environment, Social, and Governance (ESG) affecting Balanced Scorecard (BSC), 2) to determine the indirect effect of TLC affecting BSC, and 3) to confirm the developed model of transformational of food industrial organization with public concern by confirming with P-value, RMSEA, GFI, AGFI, and Critical Number. Theoretical framework: This study focuses on the relationship between TLC and ESG to BSC that affects the efficiency and success of an organization. Design/methodology/approach: The quantitative approach with survey research was conducted to collect data from 150 Executive Officers (CEOs) of food business organizations in Thailand. Findings: The finding showed that TCL has a direct effect on ESG (p-value=0.001). TLC has a direct effect on BSC (p-value=0.001). ESG has a direct effect on BSC (p-value=0.001). TLC has an indirect effect on BSC (p-value=0.001). Research, Practical & Social implications: The recommendation, TLC affected BSC with direct and indirect effects with 64.0 percent. It implied that public concern is the essential intermediate variable that should be paid attention to introduce in the organization management in the current situation when TLC was integrated into modern management. However, to accomplish effective company management, ESG should be integrated into the transformation of organization management to meet the sustainable food industry. Originality/value: The value of the study shows that TLC and ESG directly and indirectly influence BSC management and contribute to the organization performance