Review of Empirical Research on Leadership and Firm Performance

Abstract

This review aims to present a systematic review of empirical research on leadership and firm performance (FP) in order to synthesize the fragmented knowledge and propose a unifying framework for future research. To achieve this purpose, this research adopts systematic literature review methodology. A total of 60 empirical papers published during the period 2002 to 2021 was retrieved through exhaustive manual searches of online databases. A matrix table was developed to extract and organize information from the retrieved articles. The findings revealed four main key themes. First, the topic of leadership and FP has been mostly quantitatively examined in many countries and industries. Second, different leadership approaches have been found to ameliorate FP and transformational leadership remains the most commonly used approach. Third, innovation, learning, and culture were the most common mediators of the leadership-FP relationship. Fourth, support for innovation, competitive intensity, firm size, leaders’ trust, and justice orientation have been found to moderate the effect of leadership on FP.

Impact of Transformational Leadership toward Organization Efficacy in Nigeria Petroleum Company

“…(Alegbeleye and Kaufman, 2022)Furthermore, sectors tied closely with national identity like oil may have distinct sociocultural dynamics. Local indigenous expectations shape management styles in such strategic industries more acutely (Ngoc Khuong et al, 2022). Research is lacking on how sociocultural forces including paternalism and communalism moderate transformational leadership and high-performance work systems in Nigerian petroleum firms.…”