Impact of transformational leadership on business performance

Abstract

Research results about the impact of transformational leadership on business performance in companies in Bosnia and Herzegovina are presented in this paper. Financial performance and new product development are considered as business performances. Shown data are gained from survey of N=127 top managers. Descriptive statistics and correlation analysis are statistical evaluation methods used in this survey. The research results show that transformational leadership has positive impact on acquirement of high level financial performance of company and new product development. Research has also shown that leaders and managers of companies in Bosnia and Herzegovina focus their attention more on tasks than on people. So recommendation for them is to pay more attention to the changes, the future and long-term plans, as well as to their employees. It is very important for leaders to be ready to create and implement changes, to have vision, to be focused to the future and long-term plans and effects.

Keywords

• Bosnia and Herzegovina
• financial performance
• new product development
• transformational leadership