A Framework of Transformational Leadership Influence on Job Performance with the Mediating Role of Organizational Culture and Employee Motivation in Oil and Gas Companies

Abstract

The role of leadership in the gas and oil industry (O&G) has been reported a critical factor in developing human resources. However, the role of transformational leadership in boosting job performance with the mediating influence of organizational culture and motivation has not been reported. Hence, the aim of this study is to develop a conceptual framework that links transformational leadership, organizational culture, employee motivation, and job performance in O&G industry. Quantitative methodology was deployed to validate the conceptual framework. A structured questionnaire was the data collection instrument for data collection. The study sample consists of 422 employees across various departments of ADNOC, the largest oil company in the UAE. A simple random sampling technique was applied in the survey procedure. Data analysis was based on Structural Equation Modeling (SEM) using AMOS software. The results showed the validity of the hypothesized framework and significant relationships between the variables. These findings confirm that transformational leadership does not only have a direct impact on the performance of employees but also the indirect effect of organizational culture and employee motivation was significant. The outcome of this paper contributes to the theory of leadership theory and organizational behavior by presenting a novel framework in the O&G sector. Based on the results, the policymakers in the O&G industry should focus on transformational leaders to boost the performance of employees. One of the principal recommendations is to invest in human resources development programs by developing a culture of innovation and continuous improvement among the human resources of the organizations, while simultaneously strengthening the motivational factors, to drive sustainable performance and operational excellence in high-demand energy sector.