The Impact of Transformational Leadership on Job Performance and CSR as Mediator in SMEs

Abstract

Leadership style is an important factor that affects the enhancement of organizational performance and employee’s job performance, and what objectives they should pursue, which also makes a profit for their employees or makes another social and economic contribution to society. The present study was developed to observe the impact of transformational leadership on job performance and to investigate the mediating mechanism of corporate social responsibility (CSR). Primary data were collected from the employees by using a cross-sectional design method. Employees who participated in the study are working in the Small and Medium Enterprises (SMEs) of Pakistan. A total of 300 questionnaires were circulated, and 130 were received. The Regression analysis was executed to examine whether CSR mediated the correlation among transformational leadership and job performance. The results of the study suggest that transformational leadership positively and completely predicts job performance. Particularly, the study finds that CSR significantly mediated the effect of transformational leadership on job performance. On the basis of these findings, it can be explicated that transformational leadership, job performances, and CSR are important elements of an organization. These elements can improve organizational performance. Theoretical implications of the recent study are discussed, and offer directions for future research in the area.