Transformational Leadership and Project Performance: The Role of Employee Empowerment in Contractor-Subcontractor Dynamics in the Telecommunication Industry

Transformational leadership has been widely recognized for its positive impact on follower performance, particularly within project management frameworks. However, the underlying mechanisms that contribute to this performance enhancement remain unclear. This study aims to explore the influence of transformational leadership on project performance, with a specific focus on the role of employee empowerment. A questionnaire-based survey was conducted, collecting responses from 310 employees using a stratified sampling technique based on organizational roles. The findings reveal a significant positive relationship between transformational leadership and project performance, though there were notable gaps in the effective implementation of leadership styles. Furthermore, employee empowerment was found to have a substantial direct impact on performance, surpassing the influence of leadership effectiveness. The study also examined the moderating role of employee empowerment, which was found to have an insignificant effect. The results offer valuable recommendations for improving leadership execution and enhancing employee empowerment, along with suggestions for future Research in this area.