Organizational Citizenship Behavior Role in Mediating the Effect of Transformational Leadership on Organizational Performance in Gold Industry of Saudi Arabia

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International Journal of Research and Scientific Innovation (IJRSI) | Volume VII, Issue VII, July 2020 | ISSN 2321–2705

Organizational Citizenship Behavior Role in Mediating the Effect of Transformational Leadership on Organizational Performance in Gold Industry of Saudi Arabia

Aref Abdulkarem Ali Alhasheedi, Barjoyai Bin Bardai , Maged Mustafa Mahyoub
Al-Madinah International University Malaysia/Faculty of Finance & Admin. Science

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Abstract: This paper mainly aims at investigating the mediating effect of organizational citizenship behaviour in the relationship between transformational leadership behaviour and organizational performance as well as the mediating effect of organizational citizenship behaviour in the relationship between psychological ownership, working environment, employee involvement, incentives, and employee motivation, and organizational performance. To achieve the objectives of the study, quantitative research approach was applied through a questionnaire specifically designed to collect primary information from the samples of the study, which consisted of (250) managers in gold shops in Jaddah. The collected data was analysed using SPSS 20.0 and Smart-PLS 3. The results showed that organization citizenship behaviour mediates the relationship between transformational leadership behaviour, psychological ownership and incentives, and organizational performance in the Saudi Arabian gold industry. Also, organization citizenship behaviour has no mediating effect on the relationship between working environment, employee involvement, employee motivation, and organizational performance in the Saudi Arabian gold industry. At the end of this study, the researcher recommended the need to encouraging the practice of organizational citizenship behaviours by developing a set of special regulations and instructions, and consider organizational citizenship behaviours as one of the important criteria in the annual performance appraisal models for employees.

Keywords: Organizational Citizenship Behaviour, Transformational Leadership, Organizational Performance, Gold Industry.

I. INTRODUCTION

In light of the rapid developments in business organizations today, the increase in the complexities in the business environment in all its aspects, the need for change at all levels of work, and the increase in the effectiveness of the relationship between the leader and the subordinates, it was necessary to think about creating more appropriate leadership styles, as transformational leadership was the most important of these patterns, which it is one of the modern concepts in management thought. Institutions today need leaders who are able to form a clear future vision for institutions, strategic planning in developing and managing change, and avoiding crises, to keep pace with modern developments and trends in information and communication technology (Guan & Frenkel, 2018). One of the managerial concepts recently produced by contemporary management thought that has attracted the interest of researchers and practitioners alike is the concept of organizational citizenship behaviour (Khosravizadeh et al., 2017). The various consequences of organizational citizenship behavior confirm the role that such behavior plays for both the individual and the organization. This is reflected in the individual’s personal life, therefore directly will decrease the performance of the individual, and finally will negatively affect organizational performance (Shanker, 2018).