The Mediating Role of Perceived Investment in Employee Development in the Relationship between Transformational Leadership and Task Performance among First-Line Managers in the Banking Sector

Abstract

The Multiple leadership studies have established a connection between transformational leadership behaviors and the achievement of individual, team, and corporate success. The correlation between transformative leadership and followers' task performance remains ambiguous across many contexts and levels of analysis. Multiple variables and methodologies can influence the correlation. This study examined the impact of transformational leadership on the task performance of banking professionals. The concept of Perceived Investment in Employee Development (PIED) was introduced as a potential mediator between transformational leadership and employee task performance. The suggested approach was evaluated using a representative sample of 449 individuals from six Palestinian banks. The model was tested using Partial Least Squares (PLS)-based structural equation Modelling (SEM). The SmartPLS analyses demonstrated a positive relationship between perceived transformational leadership and task performance. These data further validated the concept of mediation. Furthermore, this study examines the theoretical and practical consequences, constraints, and recommendations for future research.