Transformational and Transactional Leadership as Predictors of Business Survival: Evidence from the Nigerian Telecommunications Industry

Abstract

This study examines the influence of transformational and transactional leadership styles on business survival within the Nigerian telecommunications industry, a sector characterized by intense competition, rapid technological change, and regulatory uncertainty. Drawing on Bass’s Transformational and Transactional Leadership Theories, the research investigates how leadership behaviors influence firms’ ability to sustain operations, adapt to market disruptions, and maintain competitive advantage. A quantitative research design was adopted, utilizing structured questionnaires distributed to 383 employees across major telecommunications firms MTN, Globacom, Airtel, and 9mobile. Data were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM) to evaluate the relationships between leadership styles and business survival.
Findings revealed that both transformational and transactional leadership styles have significant positive effects on business survival, though transformational leadership demonstrated a stronger influence by fostering adaptability, employee commitment, and innovative responses to environmental challenges. Transactional leadership, while more focused on performance monitoring and reward systems, contributed to short-term operational stability. The integration of both styles was found to enhance organizational resilience and adaptive capability, particularly in volatile and resource-constrained environments such as Nigeria’s telecommunications sector.
Theoretically, this study contributes to leadership and strategic management literature by empirically validating the dual impact of transformational and transactional leadership on organizational survival in an emerging market context. Practically, it provides insights for industry leaders and policymakers on developing leadership competencies that balance inspiration and structure. The paper concludes with recommendations for leadership development, resilience enhancement, and adaptive strategy formulation aimed at improving the long-term sustainability of telecommunications firms in developing economies.