Impact of transformational leadership on startup development in the Lebanese context

Abstract

The modern business world is becoming more and more concentrated on entrepreneurship and financial freedom. Therefore, leadership is becoming a growing priority for executives and managers. The main purpose of this paper is to investigate the impact of transformational leadership on startup development while taking into consideration employee performance as an important driver in the Lebanese context. Results from a sample of 132 individuals working in different startups demonstrate that the more transformational leadership practices are implemented, the more employees perform efficiently to successfully develop the organization. In addition, the hypothesis that transformational leadership leads to better startup development while being mediated by employee performance was supported. This study’s implications and future research prospects are discussed as well.