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Leadership instills organizational effectiveness: a viewpoint on business organizations

Authors
  • Hasan, Ikramul1
  • Islam, M. Nazmul2
  • 1 Independent University, Bangladesh (IUB), Dhaka, Bangladesh , Dhaka (Bangladesh)
  • 2 University of Asia Pacific, Dhaka, Bangladesh , Dhaka (Bangladesh)
Type
Published Article
Journal
SN Business & Economics
Publisher
Springer-Verlag
Publication Date
Feb 07, 2022
Volume
2
Issue
3
Identifiers
DOI: 10.1007/s43546-021-00193-z
Source
Springer Nature
Keywords
Disciplines
  • Original Article
License
Yellow

Abstract

This study explores the leadership (transformational, transactional, distributive, and servant leadership) effects on organization effectiveness. To analyze data and test the hypotheses, this research used structural equation modeling (SEM). A structured questionnaire was used to collect data from the 100 different DSE (Dhaka Stock Exchange) listed organizations in Bangladesh to do the organizational survey. Based on SEM outcome over the organizational context analyzed, this study concluded that transformational, distributive, and servant leadership significantly influenced organizational effectiveness. However, transactional leadership failed to associate with organizational effectiveness. The result of this also confirms the gender association between transactional leadership and organizational effectiveness as moderator. The findings provide novel and significant insights to the organizations to understand the leadership role to ensure their organizations’ effectiveness. This study's outcome also creates an opportunity to extend further research in other countries with bigger samples to draw a general conclusion. Finally, this paper gives a plea to the practitioners and offers valuable examples of how organizations can use the leadership role to ensure organizational effectiveness.

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