The relationship between transformational leadership, perceived organisational effectiveness and organisational culture in a selected multinational corporation in Africa

Abstract

Orientation: Multinational corporations (MNCs) in Africa are facing leadership, effectiveness and cultural challenges.

Research purpose: The purpose was to determine the relationship between transformational leadership, perceived organisational effectiveness and organisational culture from the perspective of a MNC in Africa.

Motivation of the study: Transformational leadership, organisational culture and perceived organisational effectiveness have been studied in different contexts, yet it is not clear how these three variables relate to one another in a selected MNC in Africa.

Research approach, design and method: A survey was conducted amongst a non-probability sample of 400 employees from a population of 1256 employees. A quantitative research approach was applied and structural equation modelling was used to analyse the data.

Main findings: The results indicated that organisational culture did not positively relate to transformational leadership; perceived organisational effectiveness positively related to organisational culture; perceived organisational effectiveness did not positively relate to transformational leadership; and organisational culture mediated perceived organisational effectiveness and transformational leadership.

Practical and managerial implications: The research highlighted the important role of organisational culture in transformational leadership and overall perceived organisational effectiveness.

Contribution or value add: This study found that the MNC should focus on organisational culture in order to improve transformational leadership and perceived organisational effectiveness. An academic contribution was the dynamic relationship between the three variables.