Transformational Leadership, Leader Change Attitude, and Economic Sustainability in Manufacturing Companies Operating in Canada

Some business leaders in medium-sized manufacturing companies operating in Canada do not understand the relationship between leadership style, leader change attitude, and economic sustainability. Grounded in transformational leadership theory, the purpose of this quantitative correlation study was to examine the relationship between a composite of transformational leadership attributes and the long-term economic sustainability of their respective organization. Additionally, the study sought to test whether leader change attitude was a moderating variable in the relationship between leadership style and economic sustainability. The participants were 160 leaders of medium-sized manufacturing organizations operating in Canada who completed the Multifaceted Leadership Questionnaire, the Leader Change Attitude Questionnaire, and the Economic Sustainability Questionnaire. The results of the multiple linear regression were significant, F(5,155) = 8.53, p < .001. The analysis also indicated that the leader’s attitude to change did not moderate the relationship between transformational leadership and economic sustainability. A key recommendation is for business owners and senior leaders to convey a rationale for the change and allow leaders to mitigate change concerns. The implications for positive social change include the potential to motivate followers to embrace change that promotes the company’s future well-being.