Transformational leadership and firm performance: The mediating roles of innovation capacity and management accounting systems usage
The research findings on the impact of transformational leadership (TL) on organizational performance remain controversial, and the mediating mechanisms in this relationship, including innovation capability and the use of management accounting systems (MAS), have not been thoroughly examined. Theref...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2025-12-01
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| Series: | Sustainable Futures |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666188825005520 |
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| Summary: | The research findings on the impact of transformational leadership (TL) on organizational performance remain controversial, and the mediating mechanisms in this relationship, including innovation capability and the use of management accounting systems (MAS), have not been thoroughly examined. Therefore, this study aims to enhance the understanding of this issue. Drawing on TL theory and resource-based theory, this research examines the direct and indirect effects of TL on firm performance, measured by innovation capacity and MAS usage. The investigation involved companies in Vietnam, a transition market. A survey was administered to accountants, mid-level managers, and top managers working in these companies, with 285 valid questionnaires subjected to analysis. The research model and hypotheses were tested via partial least squares-structural equation modelling (PLS-SEM). Results indicated that TL does not directly affect firm performance. However, TL indirectly affects firm performance through innovation capacity and MAS usage. This study is the first to examine the chain of activities spanning TL, innovation capacity, MAS usage, and firm performance in an Asian transition market. The findings confirm the benefits of TL style on business performance in this context. In addition, we propose practical ways to apply innovation and MAS to amplify the impact of TL on business performance. |
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| ISSN: | 2666-1888 |