Impact of Transformational Leadership on Employee Performance in the Tech Industry: A Comparative Study between India and Germany

Tobias Schmitt ()

International Journal of Leadership and Governance, 2025, vol. 5, issue 3, 60 - 71

Abstract: Purpose: To aim of the study was to analyze the impact of transformational leadership on employee performance in the tech industry: a comparative study between India and Germany. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study found that transformational leadership positively impacts employee performance in both countries, with cultural differences influencing its effectiveness. In India, leaders who emphasized vision and empowerment boosted motivation and performance, while in Germany, a focus on intellectual stimulation and inspiration led to increased innovation and efficiency. The study recommends tailoring leadership styles to local cultural values to enhance employee performance. Unique Contribution to Theory, Practice and Policy: Transformational leadership theory, hersey-blanchard situational leadership theory & cultural dimensions’ theory may be used to anchor future studies on the impact of transformational leadership on employee performance in the tech industry: a comparative study between India and Germany. Tech companies in both India and Germany should implement leadership development programs that are culturally and contextually tailored. In India, leadership programs should gradually introduce transformational leadership, focusing on elements such as individualized consideration and alignment with organizational goals to overcome hierarchical challenges. Policymakers in both India and Germany should encourage tech firms to incorporate leadership policies that recognize and address cultural differences.

Keywords: Transformational Leadership; Employee Performance; Tech Industry (search for similar items in EconPapers)
Date: 2025
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