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Entrepreneurship and Innovation Review

Details

Cover Vol. 3 No. 2 (2025)

ARTICLE

The Role of Transformational Leadership on Job Satisfaction and Employee Performance: Systematic Literature Review

Abstract

This study systematically reviews the relationship between transformational leadership, job satisfaction, and employee performance through a Systematic Literature Review (SLR) of 22 peer-reviewed articles published between 2011 and 2025. Following identification, selection, and thematic synthesis, the review integrates theories, methods, and key findings from diverse organizational contexts, including banking, education, military, and service industries. The results show that transformational leadership positively and significantly influences both job satisfaction and employee performance. Inspirational motivation and individualized consideration are most effective in enhancing job satisfaction, while intellectual stimulation and idealized influence drive performance improvements. Several studies also highlight the moderating effects of organizational culture and performance measurement systems (KPI) in strengthening these relationships. Overall, the review confirms that transformational leadership is vital for fostering a motivated, productive, and high-performing workforce, offering both theoretical insights and practical guidance for organizations seeking to enhance employee engagement and performance.