Leadership in Action: Transforming Organisational Culture and Boosting Employee Performance in the Oil Industry

Abstract

This study explores the interplay between leadership styles, organizational culture, and employee performance within Ghana’s oil industry, with a specific focus on the Bulk Oil Storage and Transportation Company Limited (BOST). Employing a multidimensional approach to leadership encompassing laissez-faire, transactional, and transformational styles, the research examined how these leadership styles influence employee performance directly and indirectly through organizational culture. Data from 200 employees were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that transactional and transformational leadership styles have significant positive effects on organizational culture and employee performance. Notably, organizational culture was found to significantly partial mediation in the relationship between transactional leadership and employee performance, highlighting its crucial role in shaping effective leadership outcomes. Based on these insights, the study advocates for the strategic adoption of transactional and transformational leadership practices in oil sector institutions to foster a performance-driven organizational culture. Recommendations for future research are also presented to deepen understanding of leadership dynamics in the oil sector in developing country contexts.