MODERATING ROLE OF WORK ENGAGEMENT ON THE RELATIONSHIPBETWEEN TRANSFORMATIONAL LEADERSHIP STYLE AND EMPLOYEEPERFORMANCE IN BANKING SECTOR

Abstract

This study investigates the impact of transformational leadership on employee performance
and examines the moderating role of work engagement within Nigerian banks with
international authorizations. Utilizing a census sampling technique, data were collected from
256 banking staff using a structured questionnaire, with analysis conducted via Partial Least
Squares Structural Equation Modeling (PLS-SEM). The findings reveal that transformational
leadership style significantly enhances employee performance, and work engagement
positively moderates this relationship. Specifically, the benefits of transformational
leadership on performance are more pronounced when employees are highly engaged. These
results emphasize the importance of adopting transformational leadership practices and
fostering high levels of work engagement to optimize employee performance. The study
recommends that organizations should invest in strategies to enhance work engagement, such
as providing opportunities for professional development, recognizing and rewarding
employee contributions, and fostering a supportive work culture. Also the study contributes
both theoretically, by expanding understanding of leadership and engagement interactions,
and practically, by providing actionable insights for enhancing leadership strategies and
engagement initiatives in the banking sector. Further research is recommended to explore
these dynamics across different sectors and contexts