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Journal of Human Resources Management Research

http://ibimapublishing.com/articles/JHRMR/2020/379522/
Vol. 2020 (2020), Article ID 379522, 16 pages, ISSN: 2166-0018
DOI: 10.5171/2020.379522

Research Article

The Impacts of Organizational Culture and

Transformational Leadership Style on The
Employee’s Job Performance: A Case Study at UAE’s
Petrochemical Company

Aishah AL DHANHANI and Nor Hazana ABDULLAH

Universiti Tun Hussein Onn Malaysia (UTHM) Parit Raja, Batu Pahat, Johor, Malaysia

Correspondence should be addressed to: Aishah AL DHANHANI; [email protected]

Received date:28 August 2019 ; Accepted date:3 December 2019; Published date: 26 June 2020

Academic Editor: Olivia Fachrunnisa

Copyright © 2020. Aishah AL DHANHANI and Nor Hazana ABDULLAH. Distributed under Creative
Commons Attribution 4.0 International CC-BY 4.0

Abstract

Organizational culture is a system of shared meaning held by members which distinguishes the
organization from other organizations. Every organization is defined and characterized by its
own culture and can barely be separated from its culture. Thus, the focus of this paper is on
organizational culture transformational leadership style and job performance. Hence, to derive
meaningful coverage, this study examines Abu Dhabi National Oil Company (ADNOC). This oil
and gas sector plays an important role in the national economic development of the United Arab
Emirates (UAE). In this quantitative research study, a structured questionnaire using a 5-point
Likert scale was used as the instrument for data collection with a total of 450 respondents from
Abu Dhabi National Oil Company participating in the study. The validity and reliability of the
measurement and the structural models were ascertained. The Partial Least Squares Structural
Equation Modeling (PLS-SEM) was used to test the hypotheses. Findings revealed that
organizational culture and transformational leadership have significant relationship with
employees' job performance. The findings add to the extant literature by integrating the factors
that could improve job performance. Likewise, the implication for the practices and future
research were also discussed.

Keywords: Transformational Leadership, organizational culture, job Performance, oil and gas
company, UAE

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Cite this Article as: Aishah AL DHANHANI and Nor Hazana ABDULLAH (2020)," The Impacts of
Organizational Culture and Transformational Leadership Style on The Employee’s Job Performance: A Case
Study at UAE’s Petrochemical Company", Journal of Human Resources Management Research, Vol. 2020
(2020), Article ID 379522, DOI: 10.5171/2020.379522
Journal of Human Resources Management Research 2

____________________________________________________________________________

Introduction (2017) explains that a leader is an individual

or group of people who decides on, equips,
In today's society, the flow of life depends on trains, and influences one or more followers
effective leadership in several aspects such who have diverse attributes, competencies,
as; organizations development, survival of and talents and focuses on developing such
community, work function and effective followers for organizational tasks and
performance. Organizations have been objectives. He also inspiresthe followers to
established to address social needs and willingly and enthusiastically expend
group activities. Moreover, the current global emotions physical and mental energy in a
economy is constantly driven by innovation, concentrated and coordinated effort to attain
performance and profitability. the organizational goals and targets. Finally,
NawoseIng’ollan, & Roussel, (2017) note that leadership is defined as the process of
due to globalization, companies are changing influencing the activities of an organization
their structure in order to compete in the in the form of goal attainment (Kişi, 2019). It
bigger global arena. Thus, organizations have is also the manner of facilitating employees
to put more efforts in terms of providing job and their collective efforts to perform shared
satisfaction. With numerous job objectives; and the manner by which they are
opportunities currently available, candidates influenced to agree on what needs to be
are difficult to please. They are looking not carried out and the way they are to be
only for an attractive wages, but talents are carried out (Yukl, 2010; Northouse, 2007;
choosing organizations that can provide Janićijević, 2008).
them various kinds of benefits, the potential
career advancement, and an environment in According to Denison, Hooijberg, Lane, &
which they feel comfortable to learn and Lief, (1996) organizational culture is defined
thrive. If an organization failed to fulfill these as the underlying values, beliefs, and
requirements, job seekers may find another principles that serve as a foundation for an
company that does. Thus, it is important for organization's management system, as well
organizations to understand exactly what as the set of management practices and
they can offer to potential employees, then behaviours that both exemplify and reinforce
highlight their best features when recruiting those basic principles. Denison (1996)
candidates. conceptualizes organizational culture as
composed of four major dimensions,
In general, leadership style is the behaviour including: involvement, consistency,
pattern of a person who attempts to adaptability and mission. It is, thus, evident
influence others (Northouse, 2012). The that organizational culture contributes to
central concept here is change and the role of organizational effectiveness andreflects the
leadership in envisioning and implementing strategy, leadership and practices of an
the transformation of organizational organization; it is the means by which
performance. Likewise, transformational members of an organization express
leadership is simply the practice of themselves, and it is the glue that binds a
leadership behaviour which empowers distinct group of individuals together all in
followers to create a vision, promote change, an effort of achieving a common vision and
and achieve a meaningful and satisfying work goal. The organizational culture has been
environment (Bass, 1985). Transformational depicted as being responsible for being
leadership attributes include four associated with employee job performances,
transformational elements which include since the culture of an organization is
Idealized influence, Inspirational motivation, evidently: the translation of organizational
Individualized consideration and Intellectual vision, strategy, leadership and systems into
stimulation (Avolio, 1991) Gopal and organizational practices that either lead to
Chowdhury, 2014). Similarly, Simmons et al. success or failure within the organization

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(Denison, Nieminen and Kotrba, 2014). The Abu Dhabi National Oil company is UAEs
Furthermore, Tlaiss & Elamin (2015) foremost and largest oil and gas company
determined the relationship between and is the most contributor to economic
organizational culture and overall job development in the UAE among all public
performance in a manufacturing firm in organizations. In the Sustainability
Kuching, Sarawak (Malaysia). Using a Performance report (2015) of the Abu Dhabi
convenient sampling of one hundred National Oil Company, it was revealed that
thirty-five respondents and face-to-face over 65,000 employees were employed in the
interview, data were collected and organization, with a significant proportion of
analyzed using the Statistical Package for those employees, Emiratis. Similarly, the
Social science (SPSS). Findings from the report revealed that ADNOC patronizes over
study revealed that there was a significant 165000 local contractors, and a total of AED
relationship between cultural norms, 309 million on the training of employees to
cultural values, culture and compensation develop the core values of the organization
structures, and the overall performance of and contribute significantly to the economic
the employees are arguably the most development of the UAE (Taing and Way,
important asset within an organization as 2015). This further reiterates ADNOC’s
they play pivotal roles in achieving crucial role in the sustenance of the UAE
organizational goals and target, economy. However, it was reported that
consequently, creating value for the future. ADNOC spends significantly on training and
development of its employees in order to
Transformational leadership has become a scale up employee performance,
crucial leadership style for modern consequently leading to developing the
organizations given the impact such overall organizational performance. While
leadership has on organizational related the training and development of employees
outcome and variables. Devanna (1990) are crucial, it can, however, be directed
states that transformational leaders are towards developing the core leadership skills
agents of change who are able to create and attributes in employees that build on
innovative and flexible work environments employee performance, while nurturing an
that inspire employees to achieve results organizational culture with which
beyond their intended capacity. Given the performance thrives. Sadly, no study in the
volatile nature of gas industry in terms of UAE has explored or examined the effect of
fluctuating prices of oil, as well as, the rigors organizational culture and transformational
of managing a diverse human resource leadership style on the employee’s job
capital and facilities found in oil and gas performance, especially from an oil and gas
companies, it becomes crucial that leaders context (Alzahmi, 2016; Hijazi, 2017; Saad &
with the right leadership behaviour and Abbas, 2018). Hence, since ADNOC is
qualities mange the affairs of oil and gas required to deliver a set of targets and
operations within organizations. The objectives, to do so, effective leadership and
literature has revealed that leaders who are administration would be required across all
able to respond to changes and initiate of the company’s operations, as well as the
change that outweighs expected outcomes contributions of employees to achieve the
are those who possess transformational desired performance the company seeks
leadership qualities (Ahamad & Kasim, 2016; from all of its members. There is an evidence
Barling, Slater, & Kevin Kelloway, 2000; suggesting that transformational leadership
Biswas, 2009; Chang et al., 2017; Esmi, Piran, influences the job performance of employees
& Hayat, 2017; Musa et al., 2018; Wang et al., (Ahamad & Kasim, 2016; Antonakis & House,
2005). Hence, transformational leadership 2002; Biswas, 2009; Chang et al., 2017;
becomes increasingly important for the Devanna, 1990; Eisenbach, Watson, & Pillai,
leadership of oil and gas companies. 2009; Elrehail et al., 2018; Enwereuzor,
Ugwu, & Eze, 2018; Khasawneh, Omari, &

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Aishah AL DHANHANI and Nor Hazana ABDULLAH (2020), Journal of Human Resources
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Abu-Tineh, 2012; Musa et al., 2018). between leadership style, organizational

However, it is not known from the gulf commitment, quality management practices
countires perspective, especially, in the oil and organizational performance. Findings
and gas context. Hence, this study examined from the study revealed that organizational
the influence of organizational culture and culture mediated the relationship between
transformational leadership style on the organizational factors and organizational
employees job performances of Abu Dhabi performance. Al-Ali et al (2017) also
National Oil Company employees. examined the influence of change leadership
on organizational culture and change
Literature Review management practices in the public-sector
firms in the UAE. The study also reports the
Organizational culture role of organizational culture (hierarchical
culture) on the interactions between
The term culture has become an important leadership and change management
part of all human societies. With the programmes. Furthermore, findings from the
emergence of globalization, culture has study revealed that hierarchical culture was
taken on a broader meaning and has evolved positively and significantly impacting both
into an indispensable dimension for planned and emergent change management
organizations (Browaeys & Price, 2008). in UAE public sector service organizations.
Culture, in its simplest form, is described as
the way of life of a group of people (Foster, Additionally, Esmi, Piran, and Hayat (2017)
1962). Hofstede (2011) defines culture “as examined the effect of organizational culture
the collective programming of the mind that on the relationship between
distinguishes members of a group or transformational leadership and
category from others”. Organizational organizational citizenship behaviour.
culture, on the other hand, may be defined as Findings revealed that two dimensions of
the collective programming of the minds of transformational leadership, i.e.
organizational members to hold certain individualized consideration and
beliefs, norms and values. In the words of inspirational motivation, directly influenced
Schein (2010); Warrick (2017); Zhou (2017) organizational citizenship behaviour
and Mohamed (2016), organizational culture positively through the role of involvement (a
is described as comprising an underlying set dimension of organizational culture).
of norms, values, and assumptions that Findings further show that the other two
members of an organization hold that depicts dimensions of transformational leadership
the organizations visions, missions and (i.e. intellectual stimulation, and idealized
beliefs. Hence, the organizational culture of influence) only directly influence
the company would align this value and organizational citizenship behaviour and
belief with the reward system and processes. through the mediating role of involvement
Employees who are fairly treated reciprocate also. Similarly, Abdullah et al (2013)
by performing well in the jobs given to them. explored the role of organizational culture in
Likewise, empirical evidence suggests that the relationship between leadership values
organizational culture is indeed a construct and innovations in organizations. Findings
of analysis in several studies (Dastmalchian confirm that organizational culture
et al., 2000; Berrio, 2003; Yang, 2010; Keir influences the relationship between
and Youssif, 2016; Halim, Alremawi, & leadership value and innovations. The role of
Tambi, 2018) For example, Abdullah et al organizational culture in the extant literature
(2014) reported the significant role of is evident. However, much of these
organizational culture as a compass for literatures have not focused on non-western
guiding the behaviour of employees. Halim context as well as in oil and gas companies.
et al. (2018) examined the role of Some studies have recommended the
organizational culture in the relationship examination of the organizational culture in

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the relationship with organizational today. In addition, effective leaders have the
variables such as leadership and functionality and capability to steer
performance in non-western context in order organizations to fulfilment by attempting and
to provide empirical evidence of the role of paying attention to the envisioned long-term
organizational culture and transformational commercial enterprise or environmental
leadership style in non-western context exchange (Avolio, Waldman, and Yammarino,
(Wang et al., 2005; Halim et al., 2018; Saad (1991).
and Abbas, 2018).
Northouse (2007) pointed out that for an
Leadership organization to build an efficient team, it is
necessary to have an effective leadership as it
Leadership is related to change. Northouse is by far one of the crucial elements in
(2010;2018) defines leadership as a enhancing the performance of the
procedure wherein an individual impacts a organization. Those who have the potential
group of people to achieve the same goal. to affect individuals are known as leaders,
Similarly, Bennett et al., 2017 and and those whom the characteristic of
Batmanghlich, (2015) describe leadership as management is applied to are referred to as
the influential relationship between leaders the supporters. Leaders and followers are
and follower inspiring significant changes linked to the process of leadership
that replicate their interactive functions. (Northouse, 2007). Hence, Nawaz, & Khan
Leaders themselves tend to be under a lot of (2015) saw leadership as the influence that
pressure, while they may be new to the occurs between leaders and his/her
problem that they face, they intend to subordinates, which consequently produces
generate significant changes in an effort to excellent results. These definitions and
prove their worth and impact on the discussions on leadership help to
organization. Western, (2008) additionally conceptualize exactly what the term
explains that leadership management is a leadership means, as well as how it can be
technique whereby a leader focuses on approached within organizational settings. In
understanding and relating with conclusion, these definitions of leadership
subordinates or followers while assisting evidently reveal that leadership entails some
them in outlining their values and dreams, form of exchange, it is between two groups of
thereby motivating them to achieve people (usually leaders and followers),
organizational goals (Storey et al., 2016). working together towards a common goal.
The entire leadership process is also
Since the early 20th century, scientific characterized by specific abilities and
research on leadership emerged. A large qualities of leaders in inspiring and
number of studies demonstrated that motivating followers to achieve
leadership had gained significant importance, organizational goals. Nawaz, & Khan (2015)
from education and business to social stated that the primary theories of leadership
organizations (Al-Husseini, 2014). Scholars are transactional and transformational
have found that leadership behaviours are leadership theory, contingency theory,
essential factors that lead to the success of leader-member exchange (LMX) concept,
organizations (Bass, 1990; Al-husseini, traits theory, behavioural theory and
2014). Nowadays, organizations need to have decision concept of management. Some of
people with high ability in leadership that these theories will be explored in the
can contribute to the success of the following section.
occupation (Northouse, 2007). Likewise, Al-
Husseini (2014) stated that a good leader has
the ability to transform the organization
according to the market demands, as this is a
solution to most of the organizational issues

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Transformational Leadership Style

This leadership theory focuses on motivating
The concept of transformational leadership is employees to overcome their very own
based on charismatic leadership studies. The distractions and strive for the collective goals
idea was developed from leadership research of the organization. Transformational leaders
subjects (Tafvelin, 2013). Burns (1978) first have the capacity to influence followers in
related the idea of transformational such a way that they are able to adopt
leadership, which he described as imaginative and discerning attributes for the
“transforming leadership” at the time and benefit of the organization as though such
subsequently was expounded by Bass attributes were always present in them
(1996). According to Burns (1978), (Jiang, et al., 2017). Hence, such leaders
transforming leadership is a term that generally tend to help their followers to
describes how leaders and followers help perform beyond expectations with the
each other to reach an optimal level of intention of making their vision come true
morale and motivation, thus enabling (Bass, 1999; Avolio and Bass, 2004). In
organizational success. In trying to addition, this motivates employees to
differentiate leadership and management relinquish personal interests and strive for
practices, Burns (1978) also opined that the attainment of collective organizational
some difficulty exists in separating the two goals (Beck-Tauber, Choy Chong, and
concepts, but the later and the former can be Wüstenhagen, 2012). Within the concept of
distinguished with regards to their transformational leadership, Bass (1996)
characteristics and behaviour, hence in such argued that leaders must adopt the positive
attempt, he established the concept of forms of transactional leadership (such as
transforming and transactional leadership. contingent reward and active management
Furthermore, Burns (1978) stated that the by exception) as well as transformational
transforming approach to leadership focuses leadership. He explained that an integration
on two essential elements- people and the of the two leadership styles would lead to
organization. It enables an avenue for optimal success in the organization.
organizational change and value by creating Conversely, Burns (1978) argued that leaders
a sense of change in perception, expectations must strive for a transformational leadership
and aspirations of employees and by style. Similarly, transformational leadership
enabling leaders to better align employee’s accounts for unique variance in performance
abilities and interest for the attainment of ratings (or other consequences) (Bass, 2000;
organizational goals. Transforming Tafvelin, 2013).
leadership is a leadership concept that is
characterized by causing overall changes in Job Performance
organizational culture, through leadership by
example, as well as a morale motivator and The word “performance” is used extensively
role model- that is the leader. In reaching a in all fields of management research. Golden
more conclusive description of the concept, (2016) argues that organizations are judged
transformational leadership is one in which mostly by their performance. Thus, the
leaders ensure ways of motivating followers achievement of any business organization is
(employees) to do more than they are continuously dependent on the contribution
possiblely expected to do, this is what the from employee’s job performance. The
leader does according to Avolio, Bass, and performance of the employees is highly
Jung (1999) by increasing the sense of responsible for realizing the vision and
importance and value perception of tasks, mission of the business organization.
stimulating employees to surpass their level Therefore, it is essential for leaders and
of interest and direct such interest towards employees to understand the concept behind
the goals of the organization, thereby raising job performance. On the other hand, job
the level of change also. performance implies the measurable

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outcomes of employees regarding their effort culture dimension (i.e. customer orientation)
which is associated with the business which was negatively associated with Job
organizations’ goals and objectives which are performance. The implication of the findings
accomplished by the employees when they revealed that some organizational culture
work effectively and efficiently. In addition, practices had a positive effect on
job performance is an indication of the performance while some also negatively
capacity of an organization to efficiently influence job performance (Mawoli et al.,
accomplish independent objectives (Muda, 2012). As shown from a review of some of
Rafiki, and Harahap, 2014). Some of the the studies in the extant literature, the
components that are considered measurable association between organizational culture
are employees’ performance, which is and job performance is evident. However,
measured by their level of production. most of these studies were carried out in the
Numerous studies have established various western context. Furthermore, most of the
ways of assessing job performance (Saad and empirical findings on the associations
Abbas, 2018). This includes determining the between organizational culture and job
quality, quantity, knowledge and/or performance has been based on studies in
creativity of individuals as against the private business companies and public
accomplished task which has been defined companies (Hofstede, 2011; Saad and Abbas,
and specified in the employee's job 2018). Little research has been conducted in
description to be carried out over a specified oil and gas companies on organizational
time (Mawoli et al., 2012). culture and job performance, thus
necessitating the need for this study.
Weerarathna and Geeganage (2014) carried
out a study to investigate the association Research Framework
between organizational culture and job
performance using a self-administered Figure 1 shows the research framework of
survey. Findings from the study revealed a the study. After an extensive review of the
significant positive correlation between literature. The researcher proposes the
organizational culture and job performance. framework to guide the inquiry; the research
Furthermore, Saad and Abbas (2018) framework provides an illustration of the
examined the direct and indirect effect of map of the study by showing the variables
organizational culture on the overall job being studied as well as the nature of the
performance of employees in the public investigation. The dependent variable of the
sector in Saudi Arabia. The authors also study is the job performance of middle
examined the effect of each dimension of managers in ADNOC, the independent
organizational culture on employees’ job variable of the study is transformational
performance. Hence, the findings indicate a leadership style and the organizational
significant and positive relationship between culture.
organizational culture and employees’ job
performance. Likewise, four dimensions of H1: There is a significant positive relationship
organizational culture (i.e. managing change, between Organizational Culture and Job
achieving goals, coordinating teamwork and performance.
cultural strength) were significantly and H2: There is a significant positive relationship
positively correlated with job performance, between transformational leadership and job
with the exception of one organizational performance.

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Figure 1: Research Framework

Methodology the study were found to be reliable with

Alpha Cronbach values ranging from 0.909 to
This section focuses on the methodology 0.864. Upon completion of real data
adopted in this research study to find collection, Bootstrapping test was used to
answers to the questions raised in the study. calculate the relationship between
Thus, this study adopted the quantitative organizational culture and transformational
research approach; and therefore, the key leadership style on employees’ job
instrument that was employed in the performance.
collection of data was a survey questionnaire.
Likewise, this section includes an explanation Results
of how the study was conducted and the
selection of the respondents as well as the The purpose of this exploratory sequential
design of the questionnaire. study is to examine the relationship between
the organizational culture and the
A convenience sampling technique was used transformational leadership style on job
to identify the sample for the study. The performance in Abu Dhabi using ADNOC as
sample of 450 employees of middle case study. This section presents the findings
managers of the oil and gas company middle obtained from the questionnaire deployed
managers participate as the respondents of for the purpose of the research with a view to
the study. Three measurements were answering the research questions posed for
adopted; the transformational leadership the study.
(MLQ), Denison’s Organizational Culture
Survey and job performance; all items used Discriminant Validity
5-Likert scales. The responses were coded as
1= Strongly Agree, 2= agree, 3= moderate, 4= Discriminant validity is the degree to which
disagree and 5= Strongly Disagree. The scores on a given test do not correlate with
questionnaires were administered scores from other tests that are not
namelessly. Before distribution of the real calculated to measure the same constructs. It
data collection, pilot test was conducted and is therefore assessed by analyzing constructs
the reliability of the dimensions was connections in any given model. Likewise,
determined. A Cronbach alpha value of above discriminant validity is said to be valid when
0.7 represents acceptable level of internal each correlation is less than 1.0 by an
consistencies. Therefore, all the constructs of amount greater than twice its respective

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standard error (Byrne, 2013; Hair, 2011). exceeds its correlation with other constructs.
According to Fornell and Larcker (1981) and Table 1 is, therefore, intended to show the
(Awang, 2015), discriminant validity is discriminate validity index of all the three
succeeded when the square root of a constructs of the study.
construct’s Average Variance Extracted

Table 1: Discriminant validity index table

Job Organizational Transformational

Constructs
Performance Culture Leadership Style
Job Performance 0.725
Organizational Culture 0.632 0.623
Transformational
0.708 0.644 0.679
Leadership Style

The above Table 1 shows that the diagonal Heterotrait-Monotrait (HTMT) analysis was
values in bold are the square roots of the used to support the proposal of Fornell and
Average Variance Extracted (AVE) of the Larcker (1981). The HTMT analysis provides
latent constructs of the research. Thus, that discriminate validity is achieved when
discriminant validity has been achieved the inter-correlations between a constructs
among all the research constructs. As of interest with all other constructs is less
mentioned earlier this happens when the than 0.85 (Kline, 2015). Therefore, it is
square root of a construct’s AVE exceeds its confirmed that the discriminant validity in
relationship values with other constructs in this study is succeeded, as presented in Table
the study (Awang, 2015). 2.

Table 2: Heterotrait-Monotrait (HTMT) Ratio

Constructs Job Organizational Transformational

Performance Culture Leadership Style
Job Performance
Organizational Culture 0.678
Transformational 0.747 0.716
Leadership Style

Table 2 presented that all the values in the valid, and is thus fit to be used to estimate
matrix are less than the 0.85 threshold for the parameters of the structural model.
inter-constructs relationship, therefore the
achievement of discriminate validity is Reflective Reliability Analysis
confirmed as earlier explained the
conditions. Thus, it can be safely concluded The reliability of the study as shown in Table
that the reliability and validity tests 3 has shown that Cronbach alpha ranges
conducted on the measurement model are between .909 and .864 for the three
satisfactory. The analyses have confirmed identified variables.
that the measurement model for the study is

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Table 3: Constructs Reliability and Validity

Constructs Cronbach's Composite Average Variance

Alpha Reliability Extracted (AVE)
Job Performance 0.909 0.923 0.525
Organizational Culture 0.745 0.811 0.588
Transformational 0.864 0.893 0.561
Leadership Style

All the Cronbach alpha values are above 0.7; scale (Aimran et al., 2015). SmartPLS is
this implies that the result is good and applied because the structural model is an
acceptable. If the alpha coefficient of any important instrument for measuring the
construct is less than 0.7, it means that the significance level of the path coefficients
Cronbach alpha value is below the acceptable between the constructs. The analysis of the
margin and it should be looked into. The path coefficients is shown in Figure 2. The
Cronbach alpha results illustrate that the results have shown that there was significant
entire constructs indicators have very good positive relationship between
reliability, as shown in Table 3. In addition, transformational leadership style and
all the constructs’ indicators were above 0.7. organizational culture on employee’s job
The item-total correlation is the correlation performance.
of the item with the total of other items in the

Figure 2: Structural model analysis

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Path Coefficient represent strong positive relationships while

those that tend towards -1 represent strong
According to (Hair, et al., (2014), the level or negative relationships (Hair et al., 2014). The
strength of a relationship is measured by the significance of the path estimates was
magnitude and significance of the estimates. determined using the bootstrapping method
Path coefficients that are close to +1 in Smart PLS-SEM.

Table 4: Significance test for the structural model path coefficient, t-statistics and p-values

Std t
Path Std β p-value Decision
Error Statistic
Organizational Culture
0.110 0.036 3.030 0.001 Supported
-> Job performance
Transformational
Leadership Style -> Job 0.232 0.020 11.513 0.000 Supported
performance

Table 4 shows the path coefficients for the values that define an organization also
various path model hypothesized in the influence and impact organizational
model. Thus, it is evident that the 2 direct outcomes and performances. This finding is
path coefficients of all were significant with t- consistent with some studies reported in the
values exceeding the t-critical value of 1.96 literature. For instance, Weerarathna and
and p-values value less than 0.05. Both Geeganage (2014) investigate the association
organizational culture and transformational between organizational culture and job
leadership style had a strong positive performance using a self-administered
relationship on employees’ job performance survey. Findings from the study revealed a
hence, it can be said that there is a positive significant positive correlation between
effect of organizational culture and organizational culture and job performance.
transformational leadership style on the job Similarly, Saad and Abbas (2018) examined
performance of middle managers in ADNOC. the direct and indirect effect of
organizational culture on the overall job
Discussion performance of employees in the public
sector in Saudi Arabia. The authors also
The aim of the study is to scrutinize the effect examined the effect of each dimension of
of the organizational culture and organizational culture on employees' job
transformational leadership style on performance. Findings show a significant and
employees job perforamance using ADNOC positive relationship between organizational
as the case study. Thus, the first research culture and employees' job performance.
objective sought to determine the effects of Hence, in this study, it is concluded that
organizational culture on job performance. organizational culture has a significant and
Hypothesis (H1) was hence used to test the positive effect on the job performance of
effect of organizational culture on job employees.
performance. Findings from the analysis
revealed that there is a significant positive This result further supports the claim that
relationship between organizational culture leadership significantly affects organizational
and employee performance; hence, the culture. Hence, the relationship between
hypothesis H1 was supported. This implies leadership style and organizational culture
that the beliefs, assumptions, as well as creates a strong determinant of job
performance. This finding is consistent with

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Aishah AL DHANHANI and Nor Hazana ABDULLAH (2020), Journal of Human Resources
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Journal of Human Resources Management Research 12

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that of Alomiri (2016) who found that Recommendations for Future Research
National Culture mediates the relationship
between leadership style and organizational Given the outcomes of this study, the
culture, and it positively affects e-services following recommendation for future studies
implementation. Besides, Ahmadi, Rezaei, can be explored. Future studies can include
and Gorizan (2015) in his study, revealed more variables such as transactuional
that transformational leadership has a direct, leadership, laissez-faire and other contextual
positive and significant impact on variables to study the effects on job
organizational culture. This study further perfoamnce in different sactors. In addition,
supports previous findings from Salanova the present stusy has not used either
(2011); Madhanga, C. S. M. (2018); Salleh, mediation or moderation variables to see the
Mohamad & Khalid (2018) which revealed indirect effect on job perfoamcne. Thus, it
that transformational leadership style has an would be interestnting for future reschers to
impact on organizational culture. Findings test the inrirect influence.
from this study also corroborate those of
James-Parks (2015) which showed that Implications
transformational leadership has a significant
positive influence on organizational culture. Findings from this study were established
using a quantitative research approach,
The second research objective sought to which uses numerical data to make an
determine the effect of transformational inference from a sample to a population.
leadership style on job performance. While quantitative approaches are in
Hypothesis (H1) was therefore used to test themselves important research
the effect of transformational leadership methodologies, they are limited in terms of
style on job performance. Results from the providing deeper insights and understanding
analysis support the hypothesis that there is regarding the variables studied. Therefore,
a significant positive relationship between future studies can use mixed-methodology
transformational leadership and job approaches in weighing the perceptions,
performance. This implies that leadership ideas, and views of the respondents.
plays a crucial role in the job performances of
employees. This finding is corroborated by
Conclusion
Golden (2016) in their study, which
investigated the relationship between
The aim of the study was to analyze the
transformational leadership and the positive
relationship between organizational culture
forms of transactional leadership on the job
and transformational leadership style on job
performances of TVE administrators in
performance of the employees at Abu Dhabi
Nigeria. Findings revealed that
Oil National Company. The applied measures
transformational leadership and
of this study have exposed a remarkable level
transactional leadership (i.e. contingent
of reliability. two hypotheses were
rewards and active management by
developed, all hypotheses were fully
exception) were positively and significantly
supported. Generally, based on the findings
correlated with employee job performance.
of the study, the transformational leadership
Similarly, this finding is consistent with those
behavior and organizational culture have a
of Jiang et al (2017) which investigated the
significant relationship on employees' job
effects of transformational leadership on
performance. In addition, this finding, thus,
sustainable job performance and found that
contributes to the existing literature on the
transformational leadership positively affects
effects of transformational leadership and
sustainable job performance.
organizational culture on the job
performance of employee, especially in an Oil
and Gas context. Therefore, if ADNOC must
realize optimal performances from its

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Aishah AL DHANHANI and Nor Hazana ABDULLAH (2020), Journal of Human Resources
Management Research, DOI: 10.5171/2020.379522
13 Journal of Human Resources Management Research

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