The relationship between transformational leadership, perceived organisational effectiveness and organisational culture in a selected multinational corporation in Africa

Abstract

Orientation: Multinational corporations (MNCs) in Africa are facing leadership, effectiveness and cultural challenges.Research purpose: The purpose was to determine the relationship between transformational leadership, perceived organisational effectiveness and organisational culture from the perspective of a MNC in Africa.Motivation of the study: Transformational leadership, organisational culture and perceived organisational effectiveness have been studied in different contexts, yet it is not clear how these three variables relate to one another in a selected MNC in Africa.Research approach, design and method: A survey was conducted amongst a non-probability sample of 400 employees from a population of 1256 employees. A quantitative research approach was applied and structural equation modelling was used to analyse the data.Main findings: The results indicated that organisational culture did not positively relate to transformational leadership; perceived organisational effectiveness positively related to organisational culture; perceived organisational effectiveness did not positively relate to transformational leadership; and organisational culture mediated perceived organisational effectiveness and transformational leadership.Practical and managerial implications: The research highlighted the important role of organisational culture in transformational leadership and overall perceived organisational effectiveness.Contribution or value add: This study found that the MNC should focus on organisational culture in order to improve transformational leadership and perceived organisational effectiveness. An academic contribution was the dynamic relationship between the three variables.

An Empirical Analysis of Transformational Leadership, Organisational Culture and Employee Performance in the Hospitality Industry of Southern Romania

“…The advent of the COVID-19 pandemic has introduced an additional layer of complexity that organizations must navigate. Muzondiwa et al (2022) emphasize that despite some leaders perceiving crisis management as beyond their purview, fostering robust and resilient organizations in uncertainty necessitates a fresh mindset, which must emanate from upper management (Burlea et al, 2017). Once effective in a rapidly evolving world, certain leadership styles may need to be revised to address the current leadership challenges.…”

“…However, the findings could have been more consistent, leading to inconclusive results. While earlier studies by Gu et al (2018) and Chen et al (2014) have reported positive associations between transformational leadership and outcomes such as satisfaction and creativity, more recent research (Diana et al, 2021;Harijanti et al, 2021;Muzondiwa et al, 2022) has highlighted its positive influence on performance. This lack of consistency in the literature hampers theoretical advancements and impedes practitioners' ability to formulate clear strategic directions.…”

“…A comprehensive literature review regarding organizational culture and leadership revealed independent associations with employee performance. Researchers have investigated the relationships between leadership styles and performance (Avolio, 2005;Bass, 1985;Bass and Avolio, 1993;Schein, 2010) as well as between organizational culture and performance (Diana et al, 2021;Muzondiwa et al, 2022). Moreover, various aspects of the organizational culture literature imply the role of leaders in shaping and sustaining specific cultural characteristics (Bass, 1985;Schein, 2010).…”

“…Despite the widespread acknowledgment of the link between leadership and culture in organizational theory, there needs to be more critical research focused on understanding the implications of this association for employee performance. Surprisingly, there is a lack of literature exploring the performance implications of the links between organizational culture and leadership, despite the significance of these concepts in organizational functioning (Schein, 2010;Muzondiwa et al, 2022). Despite the widespread acknowledgment of the link between leadership and culture in organizational theory, there needs to be more critical research focused on understanding the implications of this association for employee performance.…”

“…Despite the widespread acknowledgment of the link between leadership and culture in organizational theory, there needs to be more critical research focused on understanding the implications of this association for employee performance. Surprisingly, there needs to be more literature exploring the performance implications of the links between organizational culture and leadership despite the significance of these concepts in organizational functioning (Schein, 2010;Muzondiwa et al, 2022).…”