Abstract: This study examines the direct empirical relationship between transformational leadership and economic development among 377 managers in private and public sectors in the Eastern Area. Moreover, the research identifies the significance of financial control as a plausible mediator in the relationship between transformational leadership and economic development. In this study, financial control and transformational leadership, are posited as influencing economic development in the Eastern Area. For data analysis and hypothesis testing, Structural Equation Modelling, and several statistical methods such as the maximum likelihood estimate and regression technique were utilized to understand the dimensionality of the variables. This study adopted a systematic random sampling to select managers who work in private and public sectors to conduct the study by using a quantitative method. The managers were selected to answer these questions because of their knowledge and experience which involves in this area. The results show that that transformational leadership (Idealized Influence) positively influenced economic development, while (motivation) was found to have a negative effect on economic development. Also, they show that (Idealized Influence and motivation) positively influenced financial control. Moreover, financial control was found to be a significant mediating factor in the relationship between transformational leadership and economic development in the private and public sectors of the Eastern Area. Transformational leadership was were found to be negative mediating factors in the relationship between financial control and economic development in the private and public sectors of the Eastern Area. This study also contributes to the body of knowledge in regards to providing tools and concepts for educating current and future managers about effective methods to improve their perspective probability or chances of achieving economic development. Based on the study’s findings, transformational leadership and financial control significantly affect economic development, and it is recommended that organizations provide the necessary training to their leaders and managers, and recruiter managers who have skills leadership and management that will contribute to effective leadership, extra effort, satisfaction and achieve economic development, which can lead organizations to acquire and maintaining consistently high economic performances and successfully.
Keywords: Impacts; Financial Control; Transformational Leadership; Economic Development; Saudi Arabia.
Title: RELATIONSHIP BETWEEN TRANSFORMATIONAL LEADERSHIP AND ECONOMIC DEVELOPMENT THROUGH FINANCIAL CONTROL IN SAUDI ARABIA
Author: Fahad Bin Saad Alharbi, Mazen Mohammed Farea, Humam Bin Mohamed
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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