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Home > Archives > Volume 20, No 7 (2022) > Article

DOI: 10.14704/nq.2022.20.7.NQ33345

Influence of Transformational Leadership Style, Organizational Innovation on Company Performance in Saudi Arabia

Basil Mahmod Ali Defalla, Yap Voon Choong

Abstract

This paper investigates the impact of transformational leadership style, and organizational innovation on company performance in Saudi Arabia. Moreover. The theory employed is leadership theory. Transformational leadership is highly important, it provides motivation, support, and reassurance. That makes a positive impression on the subordinators. The leader who can leave a strong impression on his/her subordinators is the one who has a strong personality. Furthermore, transformational leadership also supports organizational innovation, it enhances the performance of employees, therefore, the performance of the companies. Based on what has been mentioned, the company's performance improves, as the required plan, based on the contribution resulting from improving the subordinators' performance. It also leads to developing the company and strengthening its competitiveness in the market. The importance of this study concludes that organizational innovation has the ability to influence the performance of companies as well as knowing and understanding the impact resulting from the wise transformational leadership of managers and guidance to ensure that companies are moving towards the desired goal and their continuity in the business environment in the long term. Moreover, the questionnaires were randomly distributed based on the quantitative research method to 300 companies in the Kingdom of Saudi Arabia in different business sectors. From the distributed questionnaires, the companies returned the completed questionnaires were 220 companies as used in the final analysis. Thus, the main limitations of this study are the use of cross-sectional data and critical informants. Hence, the results of this study showed that managers should be aware of the knowledge of leadership styles and study important assumptions to question the interest in viewpoints, which leads to obtaining various and significant outcomes.

Keywords

transformational leadership, organizational innovation, performance, Saudi Arabia.

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