TRANSFORMATIVE LEADERSHIP IN BUSINESS ADMINISTRATION: DRIVING GROWTH THROUGH CHANGE
Keywords:
Transformational Leadership, Organizational Change Capability, Small and Medium Enterprises, Trust.Abstract
This study investigates the impact of transformational leadership (TL) on organizational change capability
(OCC) in SMEs in India. Based on a survey of 376 valid respondents, the results demonstrate that TL positively
influences both disclosure-based and reliance-based trust in leadership. These trust dimensions, in turn,
significantly impact OCC, highlighting the mediating role of trust in the relationship between TL and OCC. The
findings emphasize that TL directly affects OCC and that trust is a crucial factor in facilitating organizational
change. Additionally, the study identifies the importance of education, experience, and position in influencing
OCC, while gender did not show a significant impact. The structural model of the study exhibited a good fit, and
all hypotheses were supported, confirming that TL plays a pivotal role in fostering organizational change by
cultivating trust. These results underscore the importance of transformational leadership in enhancing
organizational change processes in SMEs.
