Transformational Leadership Influences Employee Performance: A Review and Directions for Future Research

Abstract

The world is currently in an era of great turmoil, from the increase in sudden changes such as industrial accidents and terrorist threats to the global spread of the COVID-19, thus showing that the volatility, uncertainty, complexity and ambiguity characteristic of the market environment has become a norm. The personal traits and abilities of the entrepreneur determine the survival and success or failure of the company, and it is only by choosing a more appropriate leadership style according to the time and the right changes that one can seek opportunities in the crisis. Leadership style affects the work atmosphere and morale of the entire organization, and plays an important role in work performance, and how to use leadership theory to improve employee performance is attracting more and more attention from scholars at home and abroad. In this paper, based on a review of related studies at home and abroad, and from the perspectives of social exchange theory, upper echelons theory and leadership-member exchange theory, the mechanisms and relationships between transformational leadership and employee performance are organized based on a review of the conceptual structure, influencing factors and mechanisms of action of related concepts. At the same time, the more complex influence relationship between the two is also sorted out to reveal the impact path of transformational leadership on employee performance. In addition, we summarize the shortcomings of the existing research results and propose the future outlook, so as to provide some reference value for future scholars who study transformational leadership and employee performance.