Mediating Institutional Quality on Transformational Leadership and Corporate Performance of Nigeria National Petroleum Corporation (NNPC)
- July 23, 2018
- Posted by: RSIS
- Category: Management
International Journal of Research and Innovation in Social Science (IJRISS) | Volume II, Issue VII, July 2018 | ISSN 2454-6186
Justine U. Osuagwu*1, Mazlan B. Hassan2, Sunday S. Akpan1
1Putra Business School, University Putra Malaysia
2Department of Accounting and Finance, University Putra Malaysia
Abstract: – Performance of NNPC has been observed to be abysmally below expectations and there are growing concerns on possible cause of this poor performance. One area that often comes to debates is the leadership of the corporation. But other factors that are institutionally related have also been found to affect the way an organization performed. This research thus examines the effect of transformational leadership (TFL) on corporate performance with institutional quality as a mediator. A survey research design was employed to collect data from 261 respondents from NNPC and it affiliations and analyzed using partial least squares structural equation modeling. The study revealed that TFL had a significant positive effect on performance of NNPC while institutional quality did not mediate the relationship between TFL and corporate performance; rather, it had a significant negative effect on performance of NNPC. Therefore, TFL and institution quality each can independently cause significant change in performance of NNPC. The study recommends the adoption of TFL while institutional quality should be improved to achieve the desired performance of NNPC is expected in Nigeria.
Key words: Corporate performance, transformational leadership, and institutional quality, NNPC, NIGERIA.
I. INTRODUCTION
The growth of any organization depends, on no less degree, on its leadership and management among other macroeconomic situations within which the firm operates. In view of the importance of growth to every firm, management therefore, have often times, devise means to attain a sustainable growth and overall improvement in performance. One avenue that is usually looked at is the leadership of the organization. This is because, corporate leadership has been found to engender industrial transformation, socio-economic development, and economic growth. No doubt, organizations operate as trustees of public good to change performance in response to both internal and external pressure for sustainable development (Edwards, Knight, Broome, & Flynn, 2010).
