Impact of Transformational Leadership on Work Performance in The Pharmaceutical Industry in Malaysia
DOI:
https://doie.org/10.0626/AS.2024952250Keywords:
Transformational Leadership, Work Performance, Pharmaceutical Industry, MalaysiaAbstract
This study investigates the influence of transformational leadership on work performance within the context of the pharmaceutical industry in Malaysia, employee motivation as a mediator. Transformational leadership, characterized by intellectual stimulation and individualized consideration is recognized for its potential to nurture employee motivation, performance, and ultimately, organizational effectiveness. 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 data was analyzed using Smart PLS software. The findings suggests that there is a significant relationship between employee motivation and employee performance in the pharmaceutical industry of Malaysia, however, the relationship between individualized consideration and employee motivation, individualized consideration and employee performance and intellectual stimulation and employee motivation are insignificant in the industry. The results suggest that within the pharmaceutical industry of Malaysia, employee motivation plays a significant role in organizational dynamics. This implies that motivated employees are likely to contribute positively to various aspects of company performance, including productivity, quality, and innovation. However, the insignificance of the relationships between individualized consideration and both employee motivation and performance, as well as between intellectual stimulation and employee motivation, indicates that traditional leadership approaches focused on individual attention or intellectual stimulation may not be as impactful in this industry context. Furthermore, the moderate indirect effect is observed from individualized consideration to employee motivation and subsequently to employee performance highlights the significance of personalized leadership approaches in motivating employees and enhancing performance levels. Conversely, the minor indirect effect for intellectual stimulation on employee performance through employee motivation suggests a more limited impact of intellectually stimulating leadership behaviors on performance outcomes. This study’s originality may contribute to the construction of a new body of knowledge and expand the literature sources on the subject, which will be beneficial to academics and practitioners alike.