The nexus between leadership styles and organizational performance: the mediating role of quality culture

Abstract

PurposeThis study aims to investigate the mediating role of quality culture (QC) between transformational leadership (TFL), transactional leadership (TNL) and organizational performance (OP) in higher education institutions.Design/methodology/approachThe study collects data through a nationwide survey of administrators representing public and private universities in Pakistan using stratified random sampling techniques, while partial least squares structural equation modeling (PLS-SEM) is used for data analysis.FindingsThe results show that both TFL and TNL directly influence QC and that QC directly influences OP. Additionally, the study reveals significant indirect effects of TFL and TNL on OP through QC. However, the direct effects of TFL and TNL on OP are not empirically supported.Research limitations/implicationsThis study contributes theoretically to the understanding of OP in universities by examining valuable resources (TFL, TNL) and dynamic capability (QC) as predictors while also introducing QC as a mediator to explain the underlying mechanism between TFL, TNL and OP. However, limitations include a cross-sectional design, a small sample size and reliance on administrators' perceptions as the sole respondents.Practical implicationsThis study provides interesting insights for leaders, policymakers and quality managers to integrate valuable, dynamic resources and foster QC by increasing quality awareness at all departmental levels, thereby improving university performance.Originality/valueThe novelty of this study is the introduction of QC as a mediator of TFL, TNL and OP in a university setting.