Does Transformational Leadership Affects NPOs Performance?

Abstract This paper intends to focus on the importance of transformational leadership and whether it affects NPO performance. Nowadays, the role of NPOs has become more critical since the occurrence of several unfortunate events, such as the outbreak of the pandemic and the natural disasters that frequently happened. NPOs act as a helping hand for the government to handle public affairs, have made them accountable to the public at large, and need to be managed by good leaders. In addition, for organisations to achieve transparency, individual managers must agree to conduct their jobs in an atmosphere of trust and high ethical standards. The implementation of transformational leadership can resolve the mentioned issue. This study exposes the importance of transformational leadership and its effects on NPO performance. Previous studies have found that transformation has positive impacts on organisational performance. Hence, this research focuses on Malaysia and the third sector. NPOs are obligated to excel in their field as they carry the same responsibility as the government in improving society's quality of life. At the end of the research, the results determine whether transformational leadership influences the performance of NPOs. This research applies qualitative research design and uses content analysis for the methodology. This study employs a search strategy using online databases, including Scopus and ISI Web of Science (WoS), for studies published from 2017-2021. Therefore, this research is expected to improve the transformational leadership practice in Malaysia. Thus, NPOs can improve their future performance in serving their beneficiaries.