Abstract:
Purpose- The objective ofthe paper is to build a model ofresearch to examine the effect ofstrong leadership on
trust and perceived organization functioning and performance.
Methodology & Design- Leadership’s six constructs (leadership: leading firm, leadership: influencing people,
leadership: leading and motivating self, trust and firm performance) were included in the instrument that was
created and given to employees from all management stages in different firms across different sections in
Karachi, Pakistan. To test the hypotheses, data collected were examined using path modelling called partial least
squares.
Findings-The results ofthe study showed positive, direct, and significant relation i-e linear between effective
leadership(leading firm, influencing people, motivating self), trust and perceived organization functioning.
Limitations- This research have some limitations, Time, Resources and the Information were the most dominant
one. Time is the most precious and the limited thing we have in our life. If the study was given more time,
resources and information than it will be more accurate. Due to the time and resources limitation we are unable
to collect the larger number ofsample size and the length ofthe study is also limited.
Recommendations- There could be many important variables that can affect perceived organization
performance and are yet to be discovered and studied in detail to examine their impact on perceived Firm
Performance as well as on trust. This study can be further examined by using moderating variable such as
knowledge management, leadership styles etc. Monitoring for ample highlighting on strategic issues, explanatory
process and moderating effects of the situation, the shortcoming, remedies which are useful should be
investigated further.
Practical Implications- Results suggest that strong leadership (i-e leading firm, influencing people, motivating
self), increases the faith and in turn improves organizational performance. Therefore, any firm must make
leadership development and training a best leading strategic significance.
Originality/Value- Study adds to body ofliterature as it is showing that effective leadership is the cornerstone
ofincreased trust and improved organizational performance.
