The Link between Transformational Leadership Traits and Corporate Culture Types: The Prerequisites for Sustainable Performance in Public and Private Sectors Organizations

Abstract

This study has investigated the link between transformational leadership styles, corporate organizational culture types and performance in four public sector organizations. The objective of this research was to examine the effect of individual leadership traits, and culture types on performance in public organizations there by validating the arguments made by scholars and practitioners that organizational performance is more evident in private sector corporations. The behavior elements examined in this study were idealized influence behavior, inspirational motivation, intellectual stimulation, individualized consideration, idealized influence and effectiveness. The cultural variables used were clan culture, adhocracy culture, market culture, and hierarchal culture. This study utilized a survey designed and implemented a quantitative methodology. The analysis used primary data produced by the Multifactor Leadership Questionnaire (MLQ) to administer on 200 respondents from four of the largest public sector organizations in the United State Virgin Islands to examine the relationship of transformational leadership, organizational performance and corporate organizational culture. The responses were scaled and coded to enable the segmentation of the data into dependent and independent variables based on the leadership, performance and culture variables. The study utilized the multiple regression models and correlation statistical analyses to determine the degree of commonality among the components. The study concluded that transformational leadership and corporate organizational culture have positive effects on facilitating performance and is best suited in managing change and innovation in mature public and private sector organizations.