Exploring the mediating effects between transformational leadership and organizational performance

Abstract

Purpose The purpose of this paper is to study the possible mediating mechanisms (human resource management (HRM), learning and innovation) that could exist in the relationship between transformational leadership and organizational performance. This topic has been studied only by a few groups of researchers and these researchers have not analyzed all these concepts jointly.

Design/methodology/approach. This research explores the relationships using partial least squares with data from 200 Spanish industrial companies. Analyzing the mentioned relationships in the Spanish context has been done by few researchers before. Findings. The study reveals that the adoption of transformational leadership styles improves performance when specific systems of HRM practices, learning and innovation are developed in an organization. Originality/value. This study, therefore, contributes to the understanding of the link between transformational leaders and performance by proposing a model in which it is evinced that this leadership style produces synergies between HRM, learning and innovation, which in the end, affect performance.