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Transformational leadership and organizational performance of Omani SMEs: the role of market orientation

Author

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  • Khalid Abed Dahleez
  • Fadi Abdelmuniem Abdelfattah

Abstract

Purpose - This study proposed and tested a model on the relationship between transformational leadership (TL) and organizational performance (OP) with a possible intervening effect of market orientation (MO) at Omani small and medium enterprises (SMEs). Design/methodology/approach - The study followed a quantitative research design and the deductive approach. Data were collected from 259 employees working in Omani SMEs and were analyzed using structural equation modeling SEM AMOS V24. Findings - The findings supported positive direct effects of transformational leadership on Omani SMEs' business performance and market orientation. The results also supported the effect of market orientation on business performance. Further analysis showed that market orientation partly mediates the relationship between transformational leadership and business performance. Practical implications - The results motivate Omani SMEs' leaders to use intangible capabilities (i.e., market orientation practices) to improve the different aspects of organizational performance. It also suggests that developing SMEs leaders' transformational skills on envisioning the future, adopting open communication styles, motivating employees and stimulating their creativity influences Omani SMEs' performance. Originality/value - Due to the mixed results regarding the TL–OP relationship and the recommendations for further exploring this relationship, this study contributes to theory and practice. It is among the few studies to explore the mediating role of MO between TL and OP in a developing country's SMEs environment.

Suggested Citation

  • Khalid Abed Dahleez & Fadi Abdelmuniem Abdelfattah, 2021. "Transformational leadership and organizational performance of Omani SMEs: the role of market orientation," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 71(8), pages 3809-3825, June.
    • Handle: RePEc:eme:ijppmp:ijppm-08-2020-0447
    DOI: 10.1108/IJPPM-08-2020-0447
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    Cited by:

    1. Nor Sabrena Norizan & Ahmad Fadhly Arham & Ahmad Firdhaus Arham & Fatanah Jislan & Siti Norashikin Bashirun, 2024. "Perceived Organisational Support, Transformational Leadership and Organizational Performance: Perspectives of Hospitality Industry in Malaysia," Information Management and Business Review, AMH International, vol. 16(1), pages 157-172.

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