The Influence of Leadership Style on Employee Performance in Jordanian Banks: The Mediating Role of PerceivedOrganizational Support
-
https://doi.org/10.14419/z1atcn35
Received date: July 31, 2025
Accepted date: September 5, 2025
Published date: September 24, 2025
-
Leadership Style; Transformational Leadership; Transactional Leadership; Employee Performance; Perceived Organizational Support -
Abstract
This study aimed to identify the impact of leadership style, with its various elements (transformational leadership and transactional leadership), on improving employee performance in Jordanian commercial banks. The study also aimed to identify the mediating role of perceived organizational support in determining the relationship between leadership style and employee performance in the banks under study. The study population consisted of Arab Bank, Jordan Ahli Bank, Jordan Capital Bank, and Jordan Commercial Bank, where purposive sampling was used by publishing an electronic questionnaire (online questionnaire) via the Google Form website to assistant managers, supervisors, and executive directors; 356 responses were received. The data was subjected to statistical analysis. The study concluded that the combined elements of leadership style had an impact on improving employee performance in the Jordanian banks, given the presence of perceived organizational support. The effect of perceived organizational support on the relationship between transactional leadership style and employee performance was not proven. The study recommended that the banking sector focus on inspiring, motivating, and supporting its employees with a clear vision, personalized attention, and intellectual stimulation. However, the banks need to develop a culture of perceived organizational support.
-
References
- Abdelwahed, N. A. A., Al Doghan, M. A., Saraih, U. N., & Soomro, B. A. (2025). Unleashing potential: Islamic leadership’s influence on employ-ee performance via Islamic organisational values, organisational culture, and work motivation. International Journal of Law and Management, 67(2), 165–190. https://doi.org/10.1108/IJLMA-01-2024-0019.
- Adeniyi, M. M. (2023). Customer relationship management and organizational performance of selected banks in Ogun State, Nigeria [Master’s the-sis, Kwara State University]. ProQuest Dissertations and Theses Global.
- Agustian, K., Pohan, A., Zen, A., Wiwin, W., & Malik, A. J. (2023). Human resource management strategies in achieving competitive advantage in business administration. Journal of Contemporary Administration and Management, 1(2), 108–117. https://doi.org/10.61100/adman.v1i2.53.
- Aloqaily, A. N., & Masa’d, F. (2023). The impact of human resource management practices on enhancing employee performance in Jordan Islamic Bank. Journal of Southwest Jiaotong University, 58(3). https://doi.org/10.35741/issn.0258-2724.58.3.17.
- Alshemmari, J. M. H. J. (2023). An empirical study on employee empowerment role in increasing efficiency of employee performance. Journal of Logistics, Informatics and Service Science, 10(1), 52–71.
- Asgari, A., Mezginejad, S., & Taherpour, F. (2020). The role of leadership styles in organizational citizenship behavior through the mediation of perceived organizational support and job satisfaction. Innovar, 30(75), 87–98. https://doi.org/10.15446/innovar.v30n75.83259.
- Asiedu, E. A., Parku, K., Ohemeng, F. L., & Obuobisa-Darko, T. (2025). Leadership and employee performance in the Ghanaian public sector: A humanistic perspective. In Humanistic management in the public sector: Global contexts and perspectives (pp. 287–309). Springer Nature Switzer-land. https://doi.org/10.1007/978-3-031-73522-6_13.
- Avolio, B. J., & Bass, B. M. (2004). Multifactor Leadership Questionnaire™: Manual and sampler set (3rd ed.). Mind Garden.
- Bai, J. Y., Huan, T. C. T., Leong, A. M. W., Luo, J. M., & Fan, D. X. (2025). Examining the influence of AI event strength on employee perfor-mance outcomes: Roles of AI rumination, AI-supported autonomy, and felt obligation for constructive change. International Journal of Hospitality Management, 126, Article 104111. https://doi.org/10.1016/j.ijhm.2025.104111.
- Baig, S. A., Iqbal, S., Abrar, M., Baig, I. A., Amjad, F., Zia-ur-Rehman, M., & Awan, M. U. (2021). Impact of leadership styles on employees’ per-formance with moderating role of positive psychological capital. Total Quality Management & Business Excellence, 32(9–10), 1085–1105. https://doi.org/10.1080/14783363.2019.1665011.
- Bass, B. M., & Avolio, B. J. (1994). Improving organizational effectiveness through transformational leadership. Sage Publications.
- Dong, B. (2023). A systematic review of the transactional leadership literature and future outlook. Academic Journal of Management and Social Sciences, 2(3), 21–25. https://doi.org/10.54097/ajmss.v2i3.7972.
- Dong, X. (2023). Transactional leadership and employee motivation: The role of incentives in organizational behavior. Journal of Leadership and Organizational Studies, 30(2), 145–158.
- Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. (1986). Perceived organizational support. Journal of Applied Psychology, 71(3), 500–507. https://doi.org/10.1037/0021-9010.71.3.500.
- Eisenberger, R., Rhoades Shanock, L., & Wen, X. (2020). Perceived organizational support: Why caring about employees counts. Annual Review of Organizational Psychology and Organizational Behavior, 7(1), 101–124. https://doi.org/10.1146/annurev-orgpsych-012119-044917.
- Elshaer, I. A., Azazz, A. M., Kooli, C., Aljoghaiman, A., Elsawy, O., & Fayyad, S. (2025). Green transformational leadership’s impact on employee retention: Does job satisfaction and green support bridge the gap? Administrative Sciences, 15(5), Article 177. https://doi.org/10.3390/admsci15050177.
- Gaudet, M. C., & Tremblay, M. (2017). Initiating structure leadership and employee behaviors: The role of perceived organizational support, affec-tive commitment and leader–member exchange. European Management Journal, 35(5), 663–675. https://doi.org/10.1016/j.emj.2017.03.004.
- Gharaibeh, Z. I. Y., Alazzam, F. A. F., Salih, A. J., & Aldrou, K. K. A. R. (2024). Examining challenges and prospects associated with implement-ing legal protections for electronic governances: A generic perspective from developing country. Brazilian Business Review, 21(5). https://doi.org/10.15728/bbr.2023.1773.en.
- Guterresa, L. F. D. C., Armanu, A., & Rofiaty, R. (2020). The role of work motivation as a mediator on the influence of education-training and leadership style on employee performance. Management Science Letters, 10(7), 1497–1504. https://doi.org/10.5267/j.msl.2019.12.013.
- Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2011). Multivariate data analysis (7th ed.). Pearson.
- Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications.
- Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in mar-keting research. Journal of the Academy of Marketing Science, 40(3), 414–433. https://doi.org/10.1007/s11747-011-0261-6.
- Hajiali, I., Kessi, A. M. F., Budiandriani, B., Prihatin, E., & Sufri, M. M. (2022). Determination of work motivation, leadership style, employee competence on job satisfaction and employee performance. Golden Ratio of Human Resource Management, 2(1), 57–69. https://doi.org/10.52970/grhrm.v2i1.160.
- Hendawi, R., Ineizeh, N. I., Hussein, O. J., & Alkahtani, M. (2024). The role of financial technology in improving performance in Jordanian Islamic banks. Journal of Ecohumanism, 3(4), 279–290. https://doi.org/10.62754/joe.v3i4.3534.
- Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. Advances in Inter-national Marketing, 20, 277–319. https://doi.org/10.1108/S1474-7979(2009)0000020014.
- Ilyas, S., Abid, G., & Ashfaq, F. (2023). Enhancing the perceived organizational support, perceived ethical-philanthropic CSR and subjective well-being: The role of ethical leadership. International Journal of Ethics and Systems, 39(4), 713–736. https://doi.org/10.1108/IJOES-04-2022-0084.
- Judge, T. A., & Piccolo, R. F. (2004). Transformational and transactional leadership: A meta-analytic test of their relative validity. Journal of Ap-plied Psychology, 89(5), 755–768. https://doi.org/10.1037/0021-9010.89.5.755.
- Kharub, M., Mondal, S., Singh, S., & Gupta, H. (2025). Evaluation of competency dimensions for employee performance assessment: Evidence from micro, small, and medium enterprises. International Journal of Productivity and Performance Management, 74(1), 107–138. https://doi.org/10.1108/IJPPM-07-2023-0379.
- Khudhair, F. S., Rahman, R. A., Adnan, A. A. B. Z., & Khudhair, A. A. (2022). Study of the transformational leadership and organisational culture as predictors of employee creativity and innovation in the Iraq oil and gas service industry. Zien Journal of Social Sciences and Humanities, 15, 34–50.
- Koopmans, L., Bernaards, C. M., Hildebrandt, V. H., de Vet, H. C. W., & van der Beek, A. J. (2014). Construct validity of the individual work performance questionnaire. Journal of Occupational and Environmental Medicine, 56(3), 331–337. https://doi.org/10.1097/JOM.0000000000000113.
- Kurtessis, J. N., Eisenberger, R., Ford, M. T., Buffardi, L. C., Stewart, K. A., & Adis, C. S. (2017). Perceived organizational support: A meta-analytic evaluation of organizational support theory. Journal of Management, 43(6), 1854–1884. https://doi.org/10.1177/0149206315575554.
- Mahfouz, S. A., Awang, Z., Muda, H., & Bahkia, A. S. (2020). Mediating role of employee commitment in the relationship between transforma-tional leadership style and employee performance. Humanities & Social Sciences Reviews, 8(2), 624–637. https://doi.org/10.18510/hssr.2020.8270.
- Mansyur, A., Arfah, A., & Semmaila, B. (2022). The relationship between transformational leadership style and job satisfaction on employee per-formance. Point of View Research Management, 3(2), 108–120.
- Martinez, S. A., & Leija, N. (2023). Distinguishing servant leadership from transactional and transformational leadership. Advances in Developing Human Resources, 25(3), 141–188. https://doi.org/10.1177/15234223231175845.
- Mishra, S., Singh, S., & Tripathy, P. (2025). Linkage between employee satisfaction and employee performance: A case in the banking industry. Global Business Review, 26(1), 137–148. https://doi.org/10.1177/0972150920970351.
- Mohiuddin, Z. A. (2017). Influence of leadership style on employees performance: Evidence from literature. Journal of Marketing and Manage-ment, 8(1), 18–30.
- Mujanah, S., Ratnawati, T., & Kusmaningtyas, A. (2019). The effect of competence, emotional quotient, and financial quotient on the business per-formance of small and medium enterprises in Surabaya, Indonesia. In 16th International Symposium on Management (INSYMA 2019) (pp. 99–102). Atlantis Press. https://doi.org/10.2991/insyma-19.2019.18.
- Nanjundeswaraswamy, T. S., Bharath, S., & Nagesh, P. (2025). Leadership dynamics: Unveiling the nexus amid employee commitment and leader-ship styles. Journal of Management Development, 44(2), 279–307. https://doi.org/10.1108/JMD-08-2024-0260.
- Putra, I. D. G. P. T., & Sara, I. M. (2025). The role of job satisfaction mediation on the influence of perceived organizational support and work dis-cipline on employee organizational citizen behavior in Tabanan Regency. International Journal of Environmental, Sustainability, and Social Science, 6(1), 162–176. https://doi.org/10.38142/ijesss.v6i1.1321.
- Qalati, S. A., Zafar, Z., Fan, M., Limón, M. L. S., & Khaskheli, M. B. (2022). Employee performance under transformational leadership and organi-sational citizenship behaviour: A mediated model. Heliyon, 8(11), Article e11346. https://doi.org/10.1016/j.heliyon.2022.e11346.
- Rawashdeh, A. M., Elayan, M. B., Shamout, M. D., & Saleh, M. H. (2020). Job satisfaction as a mediator between transformational leadership and employee performance: Evidence from a developing country. Management Science Letters, 10(16), 3855–3864. https://doi.org/10.5267/j.msl.2020.7.026.
- Rhoades, L., & Eisenberger, R. (2002). Perceived organizational support: A review of the literature. Journal of Applied Psychology, 87(4), 698–714. https://doi.org/10.1037/0021-9010.87.4.698.
- Robinson, B. S. (2025). Leadership strategies to increase retention among high-performing employees in local government: A qualitative exploratory case study [Doctoral dissertation, University of Phoenix]. Journal of Social Education. https://journal-of-social-education.org/index.php/Jorunal/article/view/123.
- Sabir, I., Ali, I., Majid, M. B., Sabir, N., Mehmood, H., Rehman, A. U., & Nawaz, F. (2022). Impact of perceived organisational support on em-ployee performance in IT firms: A comparison between Pakistan and Saudi Arabia. International Journal of Organisational Analysis, 30(3), 795–815. https://doi.org/10.1108/IJOA-10-2019-1914.
- Saffrudin, M., & Nohong, M. (2023). The relationship of leadership style to employee performance: A schematic literature review. In Proceedings of the 7th International Conference on Accounting, Management and Economics (ICAME-7 2022) (pp. 730–741). Atlantis Press. https://doi.org/10.2991/978-94-6463-146-3_72.
- Saleem, S. A., Sultan, F., & Ali, Z. U. N. (2025). The role of transformational leadership on employee performance in Pakistan. Physical Education, Health and Social Sciences, 3(1), 1–12. https://journal-of-social-education.org/index.php/Jorunal/article/view/123.
- Saleh, W. M., & Haidar, I. M. (2022). The relationship between perceived organisational support and creative performance of employees: A study from the public sector in Syria. Institutions and Economies, 14(4), 1–24. https://doi.org/10.22452/IJIE.vol14no4.1.
- Saputra, A. I. (2023). Analysis of the effect of leadership style on employee performance with job satisfaction as mediator and gender as modera-tor. Indonesian Interdisciplinary Journal of Sharia Economics, 6(1), 313–333.
- Schiuma, G., Santarsiero, F., Carlucci, D., & Jarrar, Y. (2024). Transformative leadership competencies for organizational digital transformation. Business Horizons, 67(4), 425–437. https://doi.org/10.1016/j.bushor.2024.03.001.
- Sekaran, U. (2003). Research methods for business: A skill-building approach (4th ed.). John Wiley & Sons.
- Shabbir, T., Naz, K., & Trivedi, S. D. (2021). Perceived organisational support and employee performance: A moderating role of organisational jus-tice during COVID-19. International Journal of Educational Administration, Management, and Leadership, 2(1), 35–44. https://doi.org/10.51629/ijeamal.v2i1.14.
- Sharma, K., Joshi, C. K., Boopathy, M. C., Kazmi, S., Arumugam, S., & Attri, R. K. (2025). The impact of organisational culture on employee per-formance: A study of leadership styles and workplace productivity. Metallurgical and Materials Engineering, 31(5), 205–215.
- Shehadeh, M. (2025). Disclosures on digital transformation strategy and financial technology in Jordanian banks: Innovations, challenges and op-portunities. Journal of Financial Reporting and Accounting. Advance online publication. https://doi.org/10.1108/JFRA-12-2024-0972.
- Sihag, P., & Dhoopar, A. (2022). Organisational resilience and employee performance: The mediation of perceived organisational support in the In-dian HEIs. International Journal of Productivity and Performance Management, 72(9), 2674–2696. https://doi.org/10.1108/IJPPM-07-2021-0387.
- Sulistyan, R. B., Paramita, R. W. D., Setyobakti, M., Rizal, N., & Lukiana, N. (2020). Perceived organizational support on employee performance: The mediating effect of job stress. International Journal of Research in Business and Social Science, 9(7), 159–166.
- Syafii, L. I., Thoyib, A., & Nimran, U. (2015). The role of corporate culture and employee motivation as a mediating variable of leadership style related with employee performance. Procedia - Social and Behavioral Sciences, 211, 1142–1147. https://doi.org/10.1016/j.sbspro.2015.11.152.
- Tong, S., Jia, N., Luo, X., & Fang, Z. (2021). The Janus face of artificial intelligence feedback: Deployment versus disclosure effects on employee performance. Strategic Management Journal, 42(9), 1600–1631. https://doi.org/10.1002/smj.3322.
- Wahyu, N. D. (2019). The effect of perceived organisational support and transformational leadership style on employee performance of Surabaya Municipality’s Education Service Office. Russian Journal of Agricultural and Socio-Economic Sciences, 92(8), 33–41. https://doi.org/10.18551/rjoas.2019-08.04.
- Wuryani, E., Rodlib, A., Sutarsib, S., Dewi, N. N., & Arif, D. (2021). Analysis of the decision support system on situational leadership styles on work motivation and employee performance. Management Science Letters, 11(2), 365–372. https://doi.org/10.5267/j.msl.2020.9.033.
-
Downloads
-
How to Cite
Al-Zu’bi , S. K. ., Ibrahim , H. ., & Ismail, E. (2025). The Influence of Leadership Style on Employee Performance in Jordanian Banks: The Mediating Role of PerceivedOrganizational Support. International Journal of Accounting and Economics Studies, 12(5), 992-999. https://doi.org/10.14419/z1atcn35
