The influence of leadership on organizational performance through work-from-home outcomes under COVID-19 crisis in Thailand

Abstract

BACKGROUND: It’s not uncommon for the work-from-home (WFH) trend to persist after the peak of the COVID-19 pandemic. Various factors contribute to this continuation, including technological advancements and the benefits of it. The results of this study suggest suitable leadership styles for WFH. OBJECTIVE: This research investigates transformational and transactional leadership on organizational performance through work-from-home outcomes during the COVID-19 crisis in Thailand. METHODS: The data was collected by questionnaire from 444 employees who work for companies registered on the Stock Exchange of Thailand and the Market for Alternative Investment. These employees may work full-time or part-time from home or in a hybrid work arrangement. Data analysis employed the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. RESULTS: The main findings of this study indicate that during the COVID-19 crisis, transformational leadership did not directly influence employees’ work-for-home outcomes and had no direct or indirect effect on organizational performance. Conversely, transactional leadership is positively direct on organizational performance and indirectly through work-from-home outcomes. CONCLUSIONS: The appropriate leadership style for the WFH environment during the COVID-19 pandemic is transactional leadership. This type of leader rewards employees for meeting expectations and imposes punishments for work that falls below the predetermined standard.