Sustainability in Transformational and Transactional Leadership: Turkish Textile Industry Example

Introduction

The topic of the relationship between Leadership and sustainability in organizations has garnered significant interest in recent times. According to Metcalf and Benn (2013), Leadership plays a critical role in driving sustainable practices and outcomes. While the literature suggests that effective Leadership is crucial for promoting sustainability and achieving sustainable outcomes in organizations, there is a dearth of studies that directly address this relationship. As a result, this chapter aims to bridge the gap between transformational and transactional leadership styles on organizational sustainability. It delves into the nuances of these leadership styles and their impact on sustainability outcomes, providing a more comprehensive understanding of the relationship between Leadership and sustainability.

Many studies found a relationship between transformational Leadership and sustainability. Kafetzopoulos and Gotzamani (2022) studied the effect of leadership styles on firms' sustainable performance. They found that transformational and transactional leadership styles significantly influence social and environmental sustainability performance. Moreover, Jiang et al. (2017) explored the impact of transformational leadership on employees' sustainable performance. They suggested that transformational Leadership positively influences organizational citizenship behavior, which, in turn, contributes to sustainable performance. Muralidharan and Pathak (2018) studied the role of transformational Leadership in promoting sustainability. On the other hand, Quinn and Dalton (2009)studied the need for Leadership that focuses on sustainability, but they should have focused on a particular style.

Bass et al. (2003) proposed that transactional Leadership predicts short-term outcomes, while transformational Leadership exhibits stronger predictions over a longer period. On the other hand, Gorgulu (2020)mentions that transactional leaders aim to increase productivity through effective reward mechanisms. While not explicitly focused on sustainability, rewards and incentives can motivate employees to engage in sustainable behaviors. So, the impact of transactional Leadership on sustainability may vary depending on the specific context and organizational factors. Further research is needed to explore the direct relationship between transactional leadership style and organizational sustainability outcomes.