Mediating Role Of Transformational Leadership Style On The Relationship Between Strategy Formulation And Organizational Performance: Empirical Evidence From The Uae

Abstract

An effective leadership style improves organizational performance. There have been limited studies focused on leadership style as mediator construct particularly from the UAE context. Therefore, this study aims to investigate the effect of strategy formulation on organizational performance. Also, determine the mediating role of transformational leadership style on the relationship between strategy formulation and organizational performance in the UAE. A quantitative research approach was used with survey questionnaires as a tool for data collection. The target respondents were managers, head of department and Administration supervisor from the UAE Ministry of Energy and Infrastructure. A total of 351 valid samples were used for the analysis. The PLS-SEM analysis revealed that strategy formulation had a negative effect on organizational performance. The results showed that transformational leadership had significant and positive effects on organizational performance. Also, the findings revealed that transformational leadership fully mediates the relationship between strategy formulation and organizational performance. The results of this study provide extended insights into strategic management practices, and leadership style towards better organizational performance in the UAE public organizations context.