Leadership Development Interventions, Job Satisfaction, and Leadership Effectiveness as Determinants of Organisational Performance in Saudi Transportation Sector

Organisational performance has always been the focus of firms to measure a firm’s progress and development. However, it was reported that the organizational performance in the Saudi transportation sector is still lagging and below expectations. Hence, there is a need for Saudi transportation firms to improve their performance, which raises an important question of how to improve it. It is argued that leadership development interventions (LDI) such as coaching, mentoring and performance appraisal could improve organisational performance through increased leadership effectiveness and enhanced job satisfaction. This research examines the mediating effect of leadership effectiveness and the moderating effect of job satisfaction on the relationships between LDI on the organizational performance of Saudi transportation firms. A survey-based method was used to collect the data from 385 respondents at Saudi transportation firms. Multi-stage cluster sampling technique was employed. This study revealed that leadership development interventions (LDI) significantly influenced organisational performance directly and indirectly through the mediating role of leadership effectiveness. Further, the study found that the relationships between LDI, such as coaching and performance appraisal, are moderated by job satisfaction.