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Enterprises are challenged to be an effective, efficient, and powerful organization that can sustain challenges in the competitive world. Many variables play an essential role in making this happen, two of which are leadership and people. The aims of this study are to examine the link between the position of transformational leadership on organizational sustainability and psychological empowerment as a mediator. The study was conducted at one of the manufacturing enterprises with 350 respondents. Data was collected using three questionnaires: a) transformational leadership; b) psychological empowerment; and, c) organizational sustainability. Data was analyzed using Structural Equation Model. The results revealed that transformational leadership had a direct impact on organizational sustainability and psychological empowerment acted as a partial mediator for the relationship between transformational leadership and organizational sustainability. It can be concluded, therefore, that psychological empowerment is also a significant variable for achieving organizational sustainability. The implications of this study for management and organizational psychologist practitioners lies in developing organizational sustainability, by paying attention to the transformational leadership of their leaders.

The Linkage between Transformational Leadership, and Organizational Sustainability: Testing the Mediating Role of Psychological Empowerment