The Mediating Role of Organizational Culture and Its Impact on Organizational Performance: Evidence from Multi-Group Analysis in Saudi Arabian Holding Companies

Abstract

The purpose of this study is to investigate the function that organizational culture plays as a mediator in the relationship between transformational leadership characteristics, which include Idealized Influence, Professional Creativity, Professional Motivation, and Professional Empowerment, and job performance in Saudi Arabian holding corporations. The research investigates, through the utilization of multi-group analysis, the ways in which variances in organizational culture influence the efficacy of transformational leadership in improving job performance. The results of the study indicate that the relationship between transformational leadership and job performance is highly mediated by organizational culture. This conclusion highlights the significance of culturally congruent leadership techniques in Saudi Arabia. These discoveries add to a more in-depth understanding of how transformational leadership can be effectively implemented in organizational settings that are culturally diverse. They also give practical implications for leaders and managers in the region.