Corporate Governance and Organizational Behavior Review / Volume 7, Issue 1, 2023

THE IMPACT OF ORGANIZATIONAL

CULTURE AND LEADERSHIP STYLES ON
THE PERFORMANCE OF PUBLIC
ORGANIZATIONS
Yousef Amin Salman Almahasneh *, Mohd Shaari Bin Abd Rahman **,
Khatijah Binti Omar *, Siti Nur Atikah Zulkiffli *
* Faculty of Business, Economics and Social Development, University Malaysia Terengganu, Kuala Terengganu, Malaysia
** Corresponding author, Faculty of Business, Economics and Social Development, University Malaysia Terengganu, Kuala Terengganu, Malaysia
Contact details: Faculty of Business, Economics and Social Development, University Malaysia Terengganu, 21030 Kuala Terengganu, Malaysia

Abstract

How to cite this paper: Almahasneh, Y. A. S., When comparing actual outputs of an organization to its
Rahman, M. S. B. A., Omar, K. B., & expected results, aims, and objectives, this is referred to as
Zulkiffli, S. N. A. (2023). The impact of
organizational culture and leadership styles organizational performance (Abuzarqa, 2019; Al Khajeh, 2018).
on the performance of public organizations. Therefore, this study is to determine the impact of
Corporate Governance and Organizational organizational culture and leadership styles on the performance
Behavior Review, 7(1), 158–165.
https://doi.org/10.22495/cgobrv7i1p15
of Jordanian government organizations. The total number of
respondents in this survey was 168, and they were divided into
Copyright © 2023 The Authors Jordanian government employees. The quantitative analysis
test, which includes the validity test, reliability test, classic
This work is licensed under a Creative
Commons Attribution 4.0 International assumptions test, and hypothesis test, is used in the data
License (CC BY 4.0). analysis process. Organizational culture and leadership styles
https://creativecommons.org/licenses/by/ are independent variables in this study. Organizations’
4.0/
performance is the dependent variable in this study.
ISSN Online: 2521-1889 The findings of this study reveal that organizational culture and
ISSN Print: 2521-1870 leadership styles have a significant or minor impact on
the performance of Jordanian public organizations. The two
Received: 18.05.2022
Accepted: 17.02.2023 independent variables have a significant point that supports
the hypothesis. As a result, it is widely assumed that
JEL Classification: H5, L21, M21 organizational culture and leadership styles have an impact on
DOI: 10.22495/cgobrv7i1p15
the functioning of Jordanian government organizations. Future
studies may examine managerial support as a moderating
variable between organizational culture and leadership styles
and performance.

Keywords: Organizational Performance, Leadership Styles,

Organizational Culture

Authors’ individual contribution: Conceptualization — Y.A.S.A.;

Formal Analysis — M.S.B.A.R.; Investigation — K.B.O.; Data
Curation — Y.A.S.A.; Writing — Review & Editing — S.N.A.Z.;
Funding Acquisition — Y.A.S.A., K.B.O., M.S.B.A.R., and S.N.A.Z.

Declaration of conflicting interests: The Authors declare that there is

no conflict of interest.

1. INTRODUCTION this is referred to as organizational performance

(Ondoro, 2015). Financial performance (return on
Organizational performance is a complex and investments, earnings, etc.), shareholder return
multifaceted topic in business literature (Al Khajeh, (economic value added, total shareholder, etc.), and
2018). When comparing an organization’s actual product/service market performance are the three
outputs to its expected results, aims, and objectives, facets of organizational performance (market share,

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 Corporate Governance and Organizational Behavior Review / Volume 7, Issue 1, 2023

sales, etc). Wang (2020) and Al Khajeh (2018). 1) to explore the effect of organizational
Performance is a term that refers to a metric that culture on organizations’ performance;
gauges an organization’s success and has many 2) to explore the effect of leadership styles on
definitions. According to the process perspective, organizations’ performance.
performance is the accomplishment of the objective There are seven sections in this paper with
through the input process into the output (Abdulrab the following details. Section 1 introduces the
et al., 2018). There is a correlation between examined topic. Section 2 reviews the literature,
performance, particularly in the areas of particularly on organizations’ performance and
the economy, work efficiency, and the realization of leadership style, and organizational culture.
outcomes, and the results attained and the desired Section 3 details the research hypotheses to be
results (Saleh et al., 2018). tested in this study. Section 4 shows the theoretical
Corporate culture, in the opinion of many framework. Section 5 presents the research
worldwide researchers, is essential for company methodology, covering the sampling, the validity
success (Kassem et al., 2018). Aranki et al. (2019) and reliability of the data-gathering instrument
and Schein (1996) used the term ―group‖ to denote used, the research design, the study populace,
all sizes of social units in their studies of the unit of analysis, and the data analysis design.
organizational culture. The group notion was used Section 6 discusses the results and Section 7
by Warrick (2017) to equate an organization or concludes the paper.
group of people to a nation or family, and he
referred to the culture of any cooperative group of 2. LITERATURE REVIEW
people or organization. Within organizations,
cultures may change tremendously, and they can This section reviews relevant literature, focusing on
either bring out the best or the worst in people previous empirical investigations on the subject.
(Aranki et al., 2019). Organizational culture can Organizational performance, leadership styles, and
distinguish between successful and unsuccessful organizational culture are among the key constructs
organizations (Schönborn et al., 2019). Some that are elaborated accordingly. The next
scholars claim that organizational culture is subsections go through each of them in detail.
a complex issue both at work and in society at large.
They claim that it has a direct impact on 2.1. Organizations’ performance
the performance and effectiveness of the company,
with a strong organizational culture leading to Given the complexity and multidimensionality of
greater effectiveness (Lapiņa et al., 2015). organizational performance, scholars are still
A focused organizational leader also creates arguing about how to measure it (Jaleha & Machuki,
and provides his company with visionary leadership 2018). It does not matter who is right or wrong;
(Blankson et al., 2019). He understands the need of the goal of organizational performance is to increase
making decisions when adjusting to management consumer value by utilizing productive assets
environment changes. He develops workable provided by stakeholders (Khalid et al., 2019). There
fashions based on sustained competitive advantages. are many different ways to interpret the phrase
A good organizational leader develops a proactive ―organizational performance‖. Organizational
strategy for managing the organization’s resources. effectiveness, which is a larger concept, covers both
Therefore, it is anticipated that the findings of financial and non-financial indicators including
the study will contribute to the advancement of customer satisfaction, operations effectiveness, and
the leadership course. The ability to convince people corporate social responsibility. It is related to
to zealously pursue a specified goal is referred to as the financial, product market, and shareholder
leadership. A group’s shared humanity is what binds return in a restricted sense (Modell, 2019). It can
them together and drives them to work for their also be described as an amalgamation of non-
goals (Popoola, 2019). Saleh et al. (2018) claim that financial and financial frameworks that enable
leadership significantly improves organizational strategic leadership to evaluate the degree to which
performance. The effectiveness of an organization is business goals have been attained (Jaleha &
significantly influenced by the leadership styles Machuki, 2018).
used. An organization’s performance is impacted by
its leadership style, which also affects its culture.
2.2. Leadership styles
There is no connection between leadership style and
organizational success (Jacobo et al., 2020).
When engaging with their subordinates, leaders use
According to Presilawati et al. (2019), leadership
a certain set of characteristics, qualities, and
style affects the environment of the organization.
behaviors, which are referred to as their leadership
As a result, the goal of the study is to discover how
style (Oberer & Erkollar, 2018). Leadership is a kind
organizational culture and leadership methods
of managerial behavior that aims to integrate
affect Jordanian public organizations’ performance.
corporate or personal interests and affects to
As a result, the following research questions
achieve specified goals (Afsar et al., 2019). Al Khajeh
guide this study:
(2018) also said that a leader’s relationship style can
RQ1: What is the effect of organizational culture
be characterized as the approach taken to persuade
on organizations’ performance?
people to collaborate in order to achieve a common
RQ2: What is the effect of leadership styles on
goal or objective. These are the different categories
organizations’ performance?
of leadership styles: modern leadership styles classify
The study will seek to achieve the research
three types of leadership: 1) transformational
objectives based on the research questions stated
leadership style, 2) transactional leadership style,
above. The research objectives are as follows:
and 3) laissez-faire leadership style.

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1) Transformational leadership style: behavior provides the theoretical underpinning for

Transformational leadership is concerned with our claim (Paais & Pattiruhu, 2020).
change, as the term suggests (Manzoor et al., 2019).
The transformative process involves the leader, 3. HYPOTHESES DEVELOPMENT
the followers, and the system for which the leader
and the followers are working (Stanescu et al., 2021). The following are the two key research hypotheses
The leader is the main source of inspiration and that are presented in this study:
motivation for the followers in order to bring about
the desired transformation (Raziq et al., 2018). 3.1. The impact of leadership styles on organizations’
According to Deshwal and Ali (2020), when followers performance
are encouraged to work to the best of their abilities
and the leader attends to their needs and desires, A leader’s behavior pattern that consistently
a climate of trust, creativity, and accomplishment demonstrates how they handle their work
is established, causing positive change among assignments and corporate values is known as their
the followers and a desire to act in leadership style (Fahlevi et al., 2019). Teamwork in
the organization’s best interests as a whole (Dess the workplace might suffer from ineffective
et al., 2014; Raziq et al., 2018). leadership (Grubaugh & Flynn, 2018). Owners or
2) Transactional leadership style: managers must first comprehend which leadership
Transactional leadership refers to the contractual styles are most useful for conquering organizational
arrangement between a leader and followers that is obstacles and attaining the company’s goals and
based on each person’s advantages (Abasilim et al., objectives before they can delegate and manage food
2019). The carrot-and-stick approach is a hallmark truck businesses (Putra & Cho, 2019). Applying
of this style of leadership when it comes to the most effective leadership philosophies to food
achieving organizational goals (Ogundare, 2021). truck operations will help to improve worker
This implies that wages are determined by how productivity and satisfaction. These three leadership
effectively employees carry out their duties and that styles will be the focus of this study (Fahlevi et al.,
in order to avoid discipline, they must also comply 2019). In light of this, the following hypothesis is
with the leader’s demands (Sulamuthu & Yusof, put forth:
2018). Saad and Abbas (2019) claim that there are H1: Leadership styles impact organizations’
three components to transactional leadership: performance.
dependent reward, active management by exception,
and passive management by exception. 3.2. The impact of organizational culture on
3) Laissez-Faire leadership style: organizations’ performance
Laissez-faire leaders allow their team members
a lot of freedom in how they conduct themselves According to Mujeeb and Ahmad (2011), a strong
and assign duties. When necessary, leaders offer culture is essential for excellent performance;
resources and counsel, but typically avoid however, because organizational cultures vary,
involvement in other situations. When employees the same tactics do not always produce the same
can examine a scenario, this is often used (Fahlevi results for two businesses operating in the same
et al., 2019). Although there is a lot of freedom with sector and locale. An average person can be
this type, it is the most submissive because leaders motivated to work hard and accomplish great things
are not motivated to guide their followers (Pahi by a strong, positive culture, but an excellent
et al., 2020). employee can be demotivated to perform poorly and
accomplish little by a weak, negative culture (Elsbach
2.3. Organizational culture & Stigliani, 2018). Organizational culture is crucial to
performance management as a result (Hoque, 2018).
Corporate communications, organizational behavior, Omar and Mahmood (2020) assert that cultural
and strategic management have all conducted research will advance our understanding of
in-depth analyses of company culture (Alqaraleh performance management. According to Abuzarqa
et al., 2022). According to Meng and Berger (2019), (2019), organizational strategies like performance
research on organizational performance should management could be ineffective if the effect of
concentrate on determining the crucial role that organizational culture is not taken into account
internal organizational context may have. Internal because the two are interrelated and changes in one
organizational context includes both the political would have an impact on the other. According to
environment in which organizational actions take Shahzad et al. (2012), organizational culture has
place as well as the broad and often stable a substantial impact on a variety of organizational
categories of organizational elements, such as processes, personnel, and performance.
structure, culture, and authority. According to Furthermore, organizational culture has an indirect
the theory, disparities in organizational performance effect on organizational performance (Nikpour,
can be attributed to how organizational culture and 2017). In light of this, the following hypothesis is
strategy align (Meng & Berger, 2019). Organizational put forth:
culture theory generally maintains that it H2: Organizational culture impacts organizations’
influences the conduct of organizational members performance.
(Martinez-Caro et al., 2020). As a result,
organizational culture is recognized as a crucial 4. THEORETICAL FRAMEWORK
organizational requirement for raising member
performance and job engagement. As a result, This study presents a theoretical framework in order
organizational members will have more confidence to test the impact of organizational culture and
in the group. The relationship between leadership styles on Jordanian public organizations’
organizational culture and organizational member performance. Figure 1 illustrates the framework.

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Figure 1. Theoretical framework

Leadership styles

Organizations performance

Organizational culture

5. RESEARCH METHODOLOGY the questionnaire that evaluate the association

between variables in this study. The total number of
To investigate the research topics and investigation, questionnaires distributed among participants was
the quantitative research method is employed in this 200. Deputies and managers from Jordanian public
study. A quantitative approach to investigation sector organizations were among those who took
allows for the collection of data from a large number part. A total of 168 questionnaires were returned
of people and the generalization of the results out of 200, representing an 84% response rate.
(Thuneibat et al., 2022; Alqaraleh et al., 2020; However, after processing the input data, it was
Creswell & Creswell, 2017). Because the majority of discovered that there are 14 partial sets of data,
the participants are Arabic native speakers, where participants did not finish the entire question,
the questionnaire was delivered in Arabic translation as well as 16 incomplete sets of demographic data.
to Jordan (Aldholay et al., 2018). A questionnaire The response rate was reduced to 69%. Thus,
was used as a data-gathering method to investigate the size of the sample examined is 138 respondents,
the objectives of the study. Jordanian public sector which is a sufficient sample (Alqaraleh, 2020).
organizations make up the population of the study. The top management response rate is always less
Permanent employees, including supervisors and than 25% and the minimum requirement of 10%.
deputy managers, will be the target responders of Table 1 also shows the sources of adapted scales.
the questionnaires. There are 31 items in

Table 1. Scales used in research

No. Variable No. of items Reference

1 Organizations’ performance (OP) 9 Wanasida et al. (2021) and Akram et al. (2018)
2 Leadership styles (LS) 14 Wanasida et al. (2021), Blankson et al. (2019), and Akparep et al. (2019)
3 Organizational culture (OC) 8 Alqaraleh et al. (2022) and Taganas (2018)

6. RESULTS AND DISCUSSION The variables in this study are summarized in

Table 2. Based on respondents’ responses to nine
This study used regression analysis to forecast questions and five alternative answers (1, 2, 3, 4, and
the effects of organizational culture and leadership 5), the variable organizations’ performance provides
styles on the performance of the organization as a minimum value of 9 and a maximum value of 63,
the dependent variable factor. with an average score of 44.57 and a standard
According to Sugiyono (2014), descriptive deviation of 9.20. The variable organizational
statistics are statistics that are used to evaluate data culture, based on respondents’ responses to nine
in ways that explain or show the data as it is without questions and five possible answers (1, 2, 3, 4, and
attempting to draw broad conclusions or 5), yields an average score of 40.14 and a standard
generalizations. The purpose of this study was to deviation of 8.35, with a minimum value of 8 and
a maximum value of 56. Based on respondents’
use SPSS version 23 to test descriptive statistics.
responses to fifteen questions and five alternative
The results are below.
answers (1, 2, 3, 4, and 5), the variable leadership
styles provides a minimum value of 20 and
Table 2. Descriptive statistics
a maximum value of 98, with an average score of
71.84 and a standard deviation of 13.81.
Variable N Minimum Maximum Mean Std. Dev.
OP 273 9.00 63.00 44.57 9.20 Table 3 shows the results of a correlation
OC 273 8.00 56.00 40.14 8.35 analysis of the study’s major factors. The factors in
LS 273 20.00 98.00 71.84 13.81 this study have substantial associations, as shown
Source: Primary data processing with SPSS version 23. in Table 3. The correlation findings back up
the research ideas (H1 and H2).

Table 3. Correlations

OP OC LS
Pearson correlation 1 0.610** 0.616**
OP Sig. (2-tailed) 0.000 0.000
N 273 273 273
Pearson correlation 0.610** 1 0.824**
OC Sig. (2-tailed) 0.000 0.000
N 273 273 273
Pearson correlation 0.616** 0.824** 1
LS Sig. (2-tailed) 0.000 0.000
N 273 273 273
Note: ** Correlation is significant at the 0.01 level (2-tailed).

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6.1. Multiple linear regression analysis analysis. The regression is called regression when
the independent variables consist of two or more.
The influence of the free variable on the dependent Table 4 shows the results of the regression analysis.
variable is determined using linear regression

Table 4. Coefficientsa

Unstandardized coefficients Standardized coefficients

Model t Sig.
B Std. error Beta
(Constant) 2.090 1.596 1.310 0.191
1 OC 0.151 0.039 0.166 3.904 0.000
LS 0.436 0.026 0.721 16.918 0.000
Note: a. Dependent variable: OP.
Source: Primary data processing with SPSS version 23.

Based on Table 4, the multiple linear regression The coefficient of determination (Adjusted
equation is as follows: R-square) is 0.693 based on Table 5. This shows that
the independent variables, organizational culture
(1) and leadership styles, have a 69.3% ability to explain
employee performance. The remaining 30.7%
The following are the definitions of (100% - 69.3%) is explained by factors other than
the regression equation: the independent variables.
 Constant ( ): In this study, the constants were
2.090, which means that if all of the independent 6.3. Simultaneous significance test (F-statistic test)
variables are zero (0), the value of the dependent
variable (Y) is positive 2.090. According to Ghozali (2011), the F-test decision is
made by comparing the value of F arithmetic with
 The impact of organizational culture on
the value of the F-test:
organizations’ performance: The favorable company
a) If the F-test > F arithmetic, then H0 is
culture can be seen in the regression coefficient rejected and H1 is accepted.
figures. The positive coefficient of 0.151 implies that b) If the F-test < F arithmetic, then H0 and H1
organizational culture has a favorable impact on are accepted.
the performance of Jordanian public organizations. Hypotheses to be used in this research are:
This suggests that if the unit’s organizational H0: meaning that independent variables
culture improves, the organization’s performance simultaneously (together) have no significant effect
improves by 0.151, providing the other independent on the dependent variable.
variables in the regression model remain constant.
 The impact of leadership styles on Table 6. ANOVAa
organizations’ performance: Leadership styles have
a regression coefficient of 0.436. The positive Model
Sum of
Df
Mean
F Sig.
coefficient suggests that leadership styles have squares square
Regression 13185.631 2 6592.815 308.231 0.000b
a beneficial impact on the performance of Jordanian 1 Residual 5775.080 270 21.389
public organizations. This suggests that if the other Total 18960.711 272
independent variables in the regression model Note: a. Dependent variable: OP. b. Predictors: (Constant), LS, OC.
remain constant, every increase in leadership style Source: Primary data processing with SPSS version 23.
will raise the organization’s performance by 0.436.
According to the analysis with SPSS and
referring to Table 6, the F-count obtained by ANOVA
6.2. Test of the coefficient of determination (R2)
(F-test) was 308.231 and the F-test was 6.
We can deduce from the aforementioned data that
Looking at the coefficient of determination, or R2, to F-count > F-test, and we can rule out H0. This
see the splendor model (the model’s capacity to suggests that both corporate culture and dedication
explain the fluctuation of the dependent variable by have a substantial impact on employee performance.
variation of the independent variable) (R-square). If
the R2 value is bigger (closer to 1), the model is 6.4. Individual parameter significance test
considered good or has a stronger ability to explain
(t-statistic test)
the influence of the independent variables on
the dependent variable. If the R2 value decreases
The t-test, as defined by Ghozali (2011), indicates
(around 0), the model’s capacity to describe how much the independent factors individually
the influence of the independent variables explain the variation of the dependent variable.
investigated against the more dependent variable The following is Dasar’s decision in this test:
weak is decreasing. After conducting tests using a) By comparing the value of t arithmetic with
SPSS, the following output employment as a basis the t-test ( = 5%):
for the choice. – if the t-test > t, then H0 is rejected and H1 is
accepted;
Table 5. Model summaryb – if the t-test < t, then H0 and H1 are accepted.
b) By using the probability figure of significance:
Model R R-square
Adjusted Std. Error of – if the significance value < 0.05, then H0 is
R-square the estimate rejected and H1 is accepted;
1 0.834a 0.695 0.693 4.62484 – if the significance value > 0.05 then H0 and H1
Note: a. Predictors: (Constant), LS, OC. b. Dependent variable: OP.
Source: Primary data processing with SPSS version 23.
are rejected.
Partially, the following output of the data
processing is done using SPSS.

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Two hypotheses are carefully sought authors in organizations can enable high performance. Multiple
this partial test. The first is about the impact of linear regression tests revealed that organizational
organizational culture on performance, and culture and leadership styles together had
the second is about the impact of leadership styles a significant impact on an organization’s success.
on performance. The organizational culture variable was 0.436,
Based on the results of the calculations, while the leadership styles variable was 0.151.
an analysis of the impact of organizational culture The findings of the table regression analysis
on the performance of Jordanian public between organizational culture and organizational
organizations was conducted. For X1, the t-count performance show that when applied effectively,
value is 3.904, and the value of the t-test view was the cultural level of organizations’ performance will
obtained by using the table of percentage points of be higher. Leadership styles will then result in high-
student’s t-distribution to obtain the value performance levels in suitable organizations.
t-test = 7.
An analysis of the impact of leadership styles 7. CONCLUSION
on Jordanian public organizations’ performance was
conducted. According to the results of the Organizational culture significantly affects
calculations made using SPSS, the t-count value for organizational performance, therefore the stronger
variable X2 is 16.918 and the value of the t-test view the culture that is applied within the organization,
is 7 when using the table of percentage point the greater the performance of the resulting
distribution. organization. This allows testing to accept the first
According to Ghozali (2011), comparing hypothesis (H1) t = 1.31 and claims of influence to
the t-test with t is one way to make decisions. be disregarded. This suggests that the company is
To test this hypothesis, we can decide that the value sincerely trying to implement organizational culture
t-test and significant value 0.000 (greater than 0.05), more consistently. Yet some people continue to
which means that organizational culture leadership think that culture just has a small part to play.
styles do have a significant impact on Jordanian The results of the second hypothesis (H2) test,
public organizations’ performance. which examined claims that leadership styles have
The importance of organizational culture in an impact on organizations’ performance, showed
a corporation or organization cannot be overstated. a significant relationship between performance and
Organizational culture is very effective and will leadership style at 0.436, showing that the claim of
increase the performance of Jordanian government the H2 test that these influences are plausible is
agencies. Jordanian public organizations have true. This suggests that management should work to
an excellent organizational culture, which shows increase executive expertise in order to strengthen
that the organization’s culture is strong enough to their sense of loyalty to the business.
apply the regulations and improve performance. According to the findings, Jordanian public
The positive and significant impact of institutions need to change their culture to enforce
organizational culture is on performance. The higher bureaucratic regulations with more rigor. To build
the performance level of the organization, the better a strong culture across all adhered-to policies,
the culture of the organization. Alternatively, in management must also improve. Including
a poorly managed organizational culture, subordinates in decision-making by encouraging
organizational performance will suffer. their suggestions is one of them. This will boost
Leadership styles also play a part in increasing their trust in the company and motivate them to
the performance of a company, because if offer additional support.
the leadership style is weak, the performance will
suffer. Leadership styles in Jordanian public

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