Exploring the Pathways from Transformational Leadership to Employee Performance: The Mediating Role of Job Satisfaction

Abstract

Aim: This study examined the relationships between four dimensions of transformational leadership—idealised influence, inspirational motivation, intellectual stimulation, and individualised consideration—and employee performance through the mediating role of job satisfaction in Ghana’s pharmaceutical manufacturing industry. Methodology: A quantitative, cross-sectional survey design was used. Data were obtained from 476 employees of pharmaceutical manufacturing firms through a structured questionnaire and purposive-convenience sampling. The measurement and structural models were assessed using partial least squares structural equation modelling in SmartPLS 4, including reliability, validity, direct-effect, and mediation analyses. Findings: All four transformational leadership dimensions were positively and significantly associated with employee job satisfaction. Inspirational motivation showed the strongest relationship with job satisfaction, followed by individualised consideration, idealised influence, and intellectual stimulation. Job satisfaction was also positively and significantly associated with self-reported employee performance. The indirect-effect results indicated that job satisfaction significantly mediated the relationship between each transformational leadership dimension and employee performance, with the strongest indirect effect observed for inspirational motivation. Conclusion: The study provides sector-specific evidence from Ghana’s pharmaceutical manufacturing industry and clarifies job satisfaction as an explanatory mechanism connecting transformational leadership behaviours with employee performance. The findings emphasise the practical relevance of visionary communication, ethical conduct, intellectual engagement, and individual support for strengthening employees’ workplace evaluations and performance. However, the cross-sectional and self-reported design does not permit causal inference.