The role of transformational leadership in promoting sustainability among property development companies in Malaysia

Abstract

Sustainability is considered a significant element for property development. However, implementing sustainability effort and achieving sustainability goals are real challenge have debated from three decades ago. According to the United Nations General Assembly Brundtland Report, protecting the environment and the society in the midst of human seeking economic growth is at times taken for granted. The motivation behind this study is to seek deeper understanding of the role of transformational leadership in promoting sustainability among property development companies in Malaysia by determining the relationship between transformational leadership and sustainability in terms of environmental, economy and social. It also analyses whether organisational culture acts as a mediating factor between transformational leadership and sustainability. For this purpose, this study employed a purposive sampling method with data collected from top management from a total population of 100 listed property development companies in Bursa Malaysia. Multivariate data normality tests, descriptive statistics, and structural equation modelling through SmartPLS were used for data analysis. The study revealed a significant positive relationship between transformational leadership and sustainability. It shows that transformational leadership is essential to sustainable achievement where management possess the necessary leadership competencies, skills and knowledge to be able to achieve sustainability in property development. However, the results established insignificant relationship between organisational culture and sustainability. These findings proved that bureaucratic organisational culture mediated the relationship between transformational leadership and sustainability, while innovative culture and supportive culture did not. These results confirmed that bureaucratic culture enhances the role of transformational leadership in promoting sustainability among property development companies in Malaysia. Therefore, this study recommends organisations to invest in transformational leadership trainings to support the leadership behaviours through bureaucratic culture towards achieving sustainability.