Does transformational leadership influence organisational culture and organisational performance: Empirical evidence from an emerging country

Abstract

This study examines the relationship between transformational leadership and organisational culture, and the joint effect of both on organisational performance. Using structural equation modelling with data from 903 employees from the Vietnamese manufacturing sector, the results show that transformational leadership influences organisational performance and culture, with differing effects based on context. The study shows that organisational culture directly influences performance and partially mediates the contribution of transformational leadership to organisational performance. The findings provide theoretical and practical implications for firms seeking to improve organisational performance through changes in leadership type and culture.

Keywords

• Transformational leadership
• Leadership qualities
• Organisational culture
• Organisational performance
• Vietnam