Abstract
Transformational leadership (TL) plays an important role in today's modern business world. Thus, the leadership style can encourage, inspire and motivate employees to seek innovation and positive change that positively related to customer satisfaction and effectiveness. Therefore, the main purpose of this study is to investigate transformational leadership effects on organisational citizenship behaviours and customer satisfaction. Primary data, for this study, were collected through two types of questionnaires delivered to employees working in small and medium enterprises in Kurdistan Region of Iraq, and their customers. Employees of those companies participated in 399 surveys, whereas 420 surveys were collected from related customers. Based on the structural equation modelling (SEM) method, results showed that idealised influence, inspirational motivation, intellectual stimulation and individual consideration have positive impacts on helping behaviours, whereas only helping behaviour has a direct effect on customer satisfaction. Moreover, inspirational motivation and individual consideration had significant indirect impacts on CS.
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