1Riphah School of Business and Management, Riphah International University, Islamabad, Pakistan
2Noon Business School, University of Sargodha, Sargodha, Pakistan
3Department of Business Administration, Government College University, Faisalabad, Pakistan
*Corresponding Author: Adbul Wahab; Email: abdulwahhab.01@gmail.com
Online published on 3 November, 2023.
The Leadership styles (Laissez-faire leadership, Transformational leadership, and Transactional leadership) are studied in Pakistan's textile spinning sector to determine the most effective leadership style for enhancing employees' performance using psychological capital as a mediator. The PLS-SEM model, LMX through LC Analysis, and the Measurement Model are run twice through SEM to examine the data. The results reveal that the psychological capital has a balancing effect on both leadership style and workforce output. There is a big difference between transformational leadership and laissez-faire leadership regarding employee performance. As a result of the addition of psychological capital as a moderator, transactional leadership has an insignificant but considerable effect on employee performance. The research provides a guideline to academic researchers for further study in other sectors of textile industries, and investors can make better decisions to invest in the textiles spinning sector.
Leadership Styles, Positive Psychological Capital, PLS-SEM Model, LMX Theory, Measurement Model
