How the Leadership Style Influences the Firm's Sustainable Performance by Boosting Employee Satisfaction and Productivity: The Role of Green Organizational Culture
Megren Abdullah Altassan
Nowadays the effective leadership styles have significant for every nature of business as well as for environmental issues. Therefore, the study aims to examine the effect of transformational and transactional leadership behaviors on the sustainable manufacturing sector performance in Saudi Arabia, thereby testing the mediating influence of employee productivity and satisfaction. In order to achieve purposive sampling, data was gathered using an administration questionnaire that was given to 372 participants from sixty manufacturing organizations operating in different cities by online Google forms, emails, and WhatsApp. It is the research’s objective to understand how the mentioned leadership styles affect sustainable performance and explore the role of the employee productivity, satisfaction, and the green organizational culture within the sector. The study used Smart-PLS (4. 0) and structural equation modeling (SEM) for detailed analysis on the collected primary data and for the integration of complex model validity for PLS-SEM that is core to assure a robust analysis and result interpretation. The findings show that the organizational transformational and transactional leadership and a green culture improve the sustainable performance of the organizations in the Saudi manufacturing sector. Further, the study also reveals that aspect of how employee satisfaction and productivity mediate the sustainability effectiveness. In sum, the presented observations highlight the centrality of leadership behaviors for enhancing long-term performance in the manufacturing context.
Keywords: Transformational leadership, Transitional leadership, Employee satisfaction, Employee productivity, Green organizational culture, Firm sustainable performance
