Relationship Between Leadership Behaviour and Firm Performance in the Rmg Industry of Bangladesh

Author:

Tareque Mohammad Alam1ORCID,Islam Prof. Nazrul2ORCID

Affiliation:

1. Bangladesh University of Professionals

2. Northern University Bangladesh

Abstract

Abstract This study investigates the complex relationship between leadership behaviour and firm performance in Bangladesh's Ready-made Garment (RMG) sector. It specifically examines the mediating role of competitive advantage and the moderating effects of emotional intelligence and firm strategy. The research employs a rigorous quantitative approach, incorporating a mixed-method strategy with qualitative and quantitative phases. Data were collected from 400 RMG managers through physical questionnaires and analysed using SPSS, PLS4, and R. The empirical data analysed using PLS structural equation modelling revealed that leadership behaviour is an intangible resource within firms. Relation Behaviour emerged as the most significant behaviour in influencing firm performance. The study confirms the pivotal role of leadership behaviour in enhancing firm performance through competitive advantage. This research is distinguished by its novel perspective on examining specific leadership behaviours in the RMG sector, a departure from broader categorisations in previous studies. While the study provides valuable insights, it is limited to the context of Bangladesh's RMG sector, which may affect the generalisability of its findings. Additionally, the reliance on self-reported data may introduce biases. This study offers practical guidance for RMG firms in Bangladesh to enhance their performance by focusing on specific leadership behaviours, particularly relation-oriented approaches. It underscores the importance of emotional intelligence and firm strategy as moderating factors. It points out that competitive advantage must align with a firm's strategy to mediate between leadership behaviour and firm performance.

Publisher

Research Square Platform LLC

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