Assessing the Role of Strategic Planning & Transformational Leadership on MNCs Organizational Performance

Abstract

This study investigates the impact of strategic planning on organizational performance with the mediation of transformational leadership. The research specifically focuses on multinational corporations (MNCs) within the manufacturing sector. A total of 243 managerial staff from these MNCs participated in the study. The findings reveal that strategic planning significantly enhances both transformational leadership and organizational performance. Furthermore, transformational leadership plays a crucial role in mediating the positive relationship between strategic planning and organizational performance. Using the VRIN framework from Resourced-Based View (RBV) theory, the study highlights that both strategic and transformational leadership are essential strategic resources that contribute to improving organizational performance. Practically, these results serve as a guide for managers aiming to optimize strategic planning and transformational leadership to boost performance. Additionally, the study suggests that policymakers should reinforce their commitment to environmental, social, and governance (ESG) issues pertaining to corporate governance, ultimately enhancing competitiveness in the global market. Future research is recommended to broaden the scope of this study by exploring other regions or adding variables such as job satisfaction and organizational innovation to gain a deeper understanding of their influence on performance improvement.