THE MEDIATING EFFECT OF ORGANIZATIONAL COMMITMENT BETWEEN TRANSFORMATIONAL LEADERSHIP STYLES AND EMPLOYEE PERFORMANCE IN PUBLIC BANKING SECTOR IN LIBYA
The banking system in Libya has been facing various challenges due to the political instability and divided governance in the country. This situation has created unique features for the financial sector in Libya. This study aims to explore the relationship between transformational leadership styles, namely idealized influence, inspirational motivation, intellectual stimulation, individualized consideration with mediating role of organizational commitment and employee performance in the public banks sector in Libya. To achieve these objectives, quantitative research method was utilized by developing questionnaire survey and distributing 411 copies to the employees working for five public banks that have operating branches in Tripoli. The data was analysed using SPSS and Smart PLS. The results showed significant relationship between idealized influences, inspirational motivation, and organizational commitment and employee performance in the Libyan public banks which support what was found in the majority of the previous published literature. But unlike the majority of the published literature, intellectual stimulation and individualized consideration was found to be insignificant with employee performance in the Libyan public banks. In addition, the organizational commitment has a significant relationship with employee performance. Finally, organizational commitment showed a significant mediating effect on the relationship between idealized influence, inspirational motivation, and intellectual stimulation with employee performance. However, organizational commitment showed insignificant mediating effect on the relationship between individualized consideration and employee performance.
Leadership, Economic, Commitment, Engagement, Business Success, Management