The Effects of Transformational Leadership on Work Performance in the Malaysian Pharmaceutical Industry: Exploring Employee Motivation as a Mediator
DOI:
https://doie.org/10.0626/AS.2024877037Keywords:
Inspirational Motivation, Idealized Influence, Work Performance, Employee Motivation, Pharmaceutical Industry, MalaysiaAbstract
The objective of this study is to investigate the effects of transformational leadership on work performance in the Malaysian pharmaceutical industry, with a particular focus on the role of employee motivation as a potential mediator. Drawing upon a sample of employees within the Malaysian pharmaceutical sector, 233 respondent data is collected through an administered online survey, with a focus on assessing perceived leadership behaviors and their correlation with work performance. The collected dataset underwent rigorous analysis utilizing Smart PLS software, allowing for a comprehensive examination of the relationships between leadership behaviors, employee motivation, and work performance. The findings shows that there is a significant relationship between employee motivation and employee performance, idealized influence and employee motivation, idealized influence and employee performance, inspirational motivation and employee motivation and inspirational motivation and employee performance in the pharmaceutical industry of Malaysia. Furthermore, there is also an indirect effect observed for idealized influence on employee performance via employee motivation, similarly, indirect effect of inspirational motivation on employee performance through employee motivation is also seen. The results suggest that there is a need for leadership development programs aimed at cultivating qualities that inspire and motivate employees. Secondly, initiatives focused on enhancing employee motivation, such as professional growth opportunities and a positive work culture, should be prioritized. Additionally, integrating measures of employee motivation and leadership effectiveness into performance evaluation systems, fostering a supportive organizational culture, and adopting a culture of continuous improvement are recommended. This study’s originality may contribute to the construction of a new body of knowledge and expand the literature sources on the subject of a conceptual framework, which will be beneficial to academics and practitioners alike.