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Transformational leadership and team performance: an empirical study of the hotel industry of Pakistan

Pakistan has recently emerged as an important investment destination for the new hotel development. According to Pakistan Hotels Association (PHA), hotel industry has showed a rising trend after the courtesy launch of China Pakistan Economic Corridor (CPEC). The basic aim of this study is to investigate the influence of transformational leadership (TFL) on the team performance of hotel industry of Pakistan through the mediation of team empowerment, knowledge sharing, team-efficacy and team prosocial motivation. This study is based on a sample of 245 employees from different hotels located in Pakistan. Structural equation modelling approach was applied to examine the hypothesised relationships by using smartPLS software. The findings of study revealed the significant positive influence of transformational leadership on knowledge sharing, team empowerment, team-efficacy and team prosocial motivation. Moreover, team empowerment, team prosocial motivation and team-efficacy powerfully mediate the relationship between TFL and team performance. However, knowledge sharing showed limited effect.