The Effect of Transformational Leadership on Business Performance: A Case study of ICT Companies in Taiwan and Bosnia& Herzegovina

Abstract

Globalization and technology have exerted considerable influence on customer relationship management, product development, and business performance. The purpose of this research was to investigate the effect of transformational leadership on organizational trust, customer relationship management, innovation capabilities, and business performance. To meet this purpose, data was collected from Taiwan and Bosnia& Herzegovina. A TOKSIP structural research framework model was created, and Partial Least Square (PLS) was employed to conduct a comparative analysis of the results. After sending out 300 questionnaires, the researchers received 225 usable completed forms, and this brought the response rate to 75%. The empirical results indicated that transformational leadership has a positive and highly significant effect on organizational trust, in which organizational trust has significant effect on customerrelationship management, as well as customer relationship management on innovational capabilities. Furthermore, the results showed that innovation capabilities have a significant positive effect on business performance. This comparative study contributes a lot to the investigation of transformational leadership similarities and differences between Taiwan and Bosnia& Herzegovina. The study ends by providing practical implications and suggestions for future research.Globalization and technology have exerted considerable influence on customer relationship management, product development, and business performance. The purpose of this research was to investigate the effect of transformational leadership on organizational trust, customer relationship management, innovation capabilities, and business performance. To meet this purpose, data was collected from Taiwan and Bosnia& Herzegovina. A TOKSIP structural research framework model was created, and Partial Least Square (PLS) was employed to conduct a comparative analysis of the results. After sending out 300 questionnaires, the researchers received 225 usable completed forms, and this brought the response rate to 75%. The empirical results indicated that transformational leadership has a positive and highly significant effect on organizational trust, in which organizational trust has significant effect on customerrelationship management, as well as customer relationship management on innovational capabilities. Furthermore, the results showed that innovation capabilities have a significant positive effect on business performance. This comparative study contributes a lot to the investigation of transformational leadership similarities and differences between Taiwan and Bosnia& Herzegovina. The study ends by providing practical implications and suggestions for future research.