The impact of transformational leadership on organizational performance: the case of service sectors in twin cities of Pakistan with

Abstract

This study analyzes the impact of transformational leadership on organizational performance through the dynamic capabilities of mediating variables such as organizational knowledge, learning and innovation. The present study analyzes these impacts empirically, basing the analysis on a sample size of 300 employees working in the service sectors in twin cities of Pakistan i.e. Islamabad and Rawalpindi. The service sectors include telecom, banking and health sectors. The empirical findings partially support that (1) organizational innovation has a mediating impact in relationship between transformational leadership and organizational performance; (2) organizational performance is mediated positively by organizational innovation; and (3) organizational knowledge has a positive relationship with organizational learning.