Open AccessEffect of Transformational Leadership on Organizational Performance of Micro Finance Institutions in Kenya
Author(s) -
Lydia Muriuki,
Kennedy B. Mwengei Ombaba
Publication year - 2018
Publication title -
international journal of management, technology, and social science
Language(s) - English
Resource type - Journals
ISSN - 2581-6012
DOI - 10.47992/ijmts.2581.6012.0038
Subject(s) - transformational leadership , structural equation modeling , business , organizational performance , transactional leadership , leadership studies , public relations , psychology , management , knowledge management , political science , leadership style , marketing , computer science , economics , machine learning
Transformational leadership has attracted extensive attention in management research. The influence of transformational leadership on organizational performance is an important aspect. Given the background where greater attention is being paid to transformational leadership in the banking industry, this research aimed to establish the degree of the influence of transformational leadership on organizational performance of micro finance institutions in Kenya. Questionnaires were used for data collection. They were analyzed via structural equation modeling. The findings reveal that organizational performance is positively influenced by transformational leadership (β= 1.505; p < 0.05). These findings remind managers of the need to pay close attention to transformational leadership, to cultivate organizational performance, and thereby to eventually improve employee’s sustainable performance.