Charting Success: The Influence of Leadership Styles on Driving Sustainable Employee Performance in the Sierra Leonean Banking Sector

Effective leadership sits at the heart of organisational success, especially during periods of change. In the dynamic and highly competitive environment of commercial banks in Sierra Leone, the impact of leadership styles on employee performance is a critical area of investigation. The purpose of this paper is to assess the differential effects of transformational and transactional leadership styles on employee performance during change initiatives within commercial banks in Sierra Leone. The research study utilised a cross-sectional survey design, and data was collected from 903 participants employed in the banking industry. The study used the structural equation model as an investigative instrument to examine the hypotheses. The findings reveal that transformational and transactional leadership styles demonstrate a strong bearing on employee performance, with the latter having a bigger influence. Organisational citizenship behaviour has a mediating effect between leadership styles and employee performance. In contrast, employee commitment does not act as a mediator between transformational leadership and employee performance but does act as a mediator between transactional leadership and employee performance. Commercial banks need to devise training programs that will advance both leadership styles to arouse, energise, or inspire followers to display favourable behaviour and commitment to attain organisational goals. The paper makes an insightful contribution to the existing leadership literature by ascertaining the significance of leadership styles on performance and the role of commitment and organisational citizenship behaviour as mediators of the nexus between leadership styles and performance in the Sierra Leone banking industry.