The Nexus Between Transformational Leadership and Firm Performance
Keywords:
Transformational Leadership, Firm Performance, Employee Self Efficacy, Work Engagement, Private Banking SectorAbstract
The purpose of this study is to analyze the impact of transformational leadership on the performance of private banks located in Nawabshah, Pakistan. Additionally, it examines how employee self-efficacy and work engagement act as mediators in this relationship. Through non-probability convenience sampling, 100 participants from private banks were selected and data was collected using a Likert scale questionnaire. Structural equation modeling (SEM) was used for data analysis through Smart PLS software. By exploring the effects of transformational leadership on firm performance and the mediating roles of employee self-efficacy and work engagement, this study contributes new insights to the existing literature on leadership and firm performance. The findings have practical implications for managers and leaders in the private banking sector in Pakistan, highlighting the importance of transformational leadership in enhancing firm performance.
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