Author(s): Hala Essa J Saddam, Mohammed Yahya N Hamati, Abdulaziz Taresh H Alshahrani
The present study investigates the moderating role of organizational culture in the relationship between transformational leadership and organizational performance in SMEs. Transformational leadership is a leadership style that focuses on inspiring and motivating followers to achieve their full potential, while organizational culture refers to the shared values, beliefs, and behaviours that shape the norms and expectations of an organization. Despite the growing interest in the impact of transformational leadership on organizational performance, there is a lack of research exploring the role of organizational culture in shaping this relationship. To address this gap, the study employs a quantitative research design and collects data from employees working in organizations from various industries. Structural equation modelling is used to analyse the data and test the proposed hypotheses. The results suggest that organizational culture plays a significant moderating role in the relationship between transformational leadership and organizational performance, with a positive organizational culture strengthening the relationship between the two variables. The findings have important implications for organizations and leaders looking to improve organizational performance through transformational leadership practices. By understanding the role of organizational culture in shaping this relationship, organizations can take steps to create a positive culture that supports transformational leadership and enhances organizational performance. The results also contribute to the larger body of literature on transformational leadership and organizational culture and provide insights for future research in these areas.