Abstract

Objectives: This study investigates the impact of transformational and transactional leadership styles on organizational performance in the manufacturing sector in Riyadh, Saudi Arabia, within the context of Vision 2030. Despite the growing importance of effective leadership, empirical evidence on its influence on performance metrics in Saudi industrial firms remains limited. Methods: A quantitative approach was employed, collecting data from 400 employees across various manufacturing companies. The Multifactor Leadership Questionnaire (MLQ) measured leadership styles, while organizational performance was assessed through employee productivity, operational efficiency, goal achievement, and innovation. Results: Findings indicate that transformational leadership has a strong, positive, and statistically significant effect on organizational performance, whereas transactional leadership also has a positive but weaker influence. Regression analysis confirmed transformational leadership as the strongest predictor across multiple performance dimensions. Descriptive results revealed that transformational leadership is the predominant style among manufacturing managers in Riyadh. Conclusions: This research contributes to leadership literature by providing evidence from a non-Western, emerging market context. The findings highlight the importance of fostering transformational leadership to enhance performance, support national development strategies, and inform human resource practices, leadership development programs, and organizational policies in Saudi manufacturing.