Leadership and Employee Effects on Financial and Non-Financial Performance: The Moderating Role of Organisational Culture in Malaysia’s E&E Manufacturing Sector

This empirical study examines the impact of leadership and employees on both financial and non-financial performance within Malaysia’s Electrical and Electronics (E&E) manufacturing sector. It further investigates how three dimensions of organisational culture (bureaucratic, innovative, and supportive) moderate the relationship between leadership and employee outcomes. Data were collected from 155 E&E manufacturing companies through a structured questionnaire survey. Structural Equation Modelling (SEM) was applied to validate the conceptual framework and test the hypothesised relationships. The results reveal that employee outcomes significantly and positively influence both financial and non-financial performance, whereas leadership exhibits no significant direct effect. Organisational culture demonstrates mixed moderating effects. A low level of bureaucratic culture positively moderates the leadership–employee relationship, while a high level of supportive culture significantly strengthens it, and innovative culture shows no significant influence. These findings underscore the critical role of human capital and cultural context in shaping sustainable organisational performance. The study extends the management and social science literature by providing empirical insights into how E&E manufacturers in emerging economies can align leadership, workforce engagement, and organisational culture to enhance both financial and non-financial outcomes. Practical implications for policymakers and industry leaders are also discussed.