Transformational Leadership and Its Role in Enhancing Organizational Performance in Service Institutions: A Case Study of Afriqiyah Airways.

Abstract

This study aims to examine the impact of transformational leadership on enhancing performance and developing productive institutions, through an applied study on the African Airlines Company. The study focused on the five dimensions of transformational leadership: idealized influence, inspirational motivation, individualized consideration, intellectual stimulation, and empowerment, and their relationship with organizational performance variables, namely technology and organizational structure. The study adopted a descriptive-analytical approach, collecting data from 70 employees using structured questionnaires. Data were analyzed using descriptive statistics, Pearson correlation, and linear regression analysis. Results indicated that transformational leadership is practiced at a good level and all its dimensions are positively and significantly associated with organizational development. Regression analysis showed that transformational leadership explains 55.5% of the variance in institutional development (R² = 0.555), with intellectual stimulation having the strongest effect on technology adoption, while motivation and individualized consideration had the greatest influence on organizational structure. Based on these findings, the study recommends enhancing transformational leadership practices through leadership training, employee empowerment, encouraging innovation, and improving incentive systems, to achieve sustainable improvement in institutional performance: