The Impact of Transformation Leadership on The Effectiveness of Decision-Making in Processes in ADNOC

Abstract

This paper examines the effects of transformational leadership on decision-making effectiveness in semi-government organizations, specifically Abu Dhabi National Oil Company (ADNOC). Using a quantitative research method, information was gathered from 382 employees through a questionnaire with closed-ended questions and established measurement scales. Four dimensions of transformational leadership (idealized influence, inspirational motivation, intellectual stimulation and individualized consideration) were discussed relevant to the study as well as decision-making effectiveness in terms of its components (decision quality, speed, acceptance, and implementation respectively). Findings show that transformational leadership has a very strong positive and statistically significant effect on decision-making effectiveness. The dimensions all had a positive contribution, with relative strengths in idealized influence and individualized consideration. The findings indicate that leadership practices focusing on creating trust and the ability to inspire a workforce are important factors in the greater decision-making process of an organization. Nevertheless, it also indicates that contextual factors including organizational shape, cultural norms and bureaucratic constraints may have an effect on the effectiveness of transformational leadership in semi-government environments. This study advances the existing body of research by evidencing a Middle Eastern context, an overlooked area for leadership and decision-making in hybrid organizations. It also provides actionable insights for organizations to aid their leadership development and enhance the effectiveness of decision-making. Research adopting longitudinal design and further contextual variables is highly recommended to study the complex nature of this relationship in depth.