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The Effect of Transactional Leadership on Organizational Agility in Tourism and Hospitality Businesses: The Mediating Roles of Organizational Trust and Ambidexterity

202351 citationsOpen accessUniversity of Sadat City

In plain language

Operating within the dynamic tourism and hospitality industry requires agility to secure a competitive edge. This study evaluates how transactional leadership influences organisational agility, focusing on the mediating roles of organisational trust and ambidexterity through the resource-based view. Data were gathered from 532 full-time staff working across five-star hotels and category A travel agencies in Egypt and evaluated using partial least squares structural equation modelling. The results reveal that transactional leadership positively influences organisational agility, trust, and ambidexterity. Additionally, organisational trust and ambidexterity significantly mediate the connection between transactional leadership styles and agility. The findings highlight the importance of setting specific, measurable, achievable, relevant, and time-bound goals. By collaborating on these objectives, managers can align employee performance with overarching agility needs, prompting teams to proactively identify and seize emerging business opportunities.

Key takeaways

  • Transactional leadership has a direct positive impact on organisational agility, trust, and ambidexterity in tourism and hospitality firms.
  • Organisational trust and ambidexterity both serve as mediators connecting transactional leadership to organisational agility.
  • Establishing SMART goals represents a vital mechanism within transactional leadership to stimulate enterprise agility.
  • Collaborative goal-setting encourages employees to proactively spot and capture operational opportunities.

Why it matters

In volatile service industries, organisations must adapt swiftly to market changes to stay viable. This work shows that clear, structured leadership does not hinder flexibility, but instead builds the trust and operational ambidexterity needed for agility. Adopting structured, collaborative goal-setting methods gives business leaders a practical way to steer daily employee actions toward rapid adaptation and sustained competitiveness.

Commercialisation angle

The insights are directly relevant to human resource directors, hotel general managers, and travel agency operators seeking to enhance workforce performance. As applied management research tested across operational hospitality businesses, the concepts are near-market and ready for immediate workplace integration. Organisations can utilise these findings to design leadership training curricula and employee performance appraisal systems centered on collaborative target setting to improve agility.

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Abstract

The tourism and hospitality industry is dynamic, so it demands agility to gain a competitive edge. This paper aims to examine the effect of transactional leadership on organizational agility in the tourism and hospitality industry. It also investigates the roles of organizational trust and ambidexterity as mediators by adopting the resource-based view (RBV). This study’s data are collected from the full-time employees working in category (A) travel agencies and five-star hotels operating in Egypt. The PLS-SEM approach was used to analyze 532 valid responses using WarpPLS 7.0. The findings showed that there is a positive relationship between transactional leadership and organizational agility, as well as positive relationships between transactional leadership with organizational trust and ambidexterity. Organizational trust and ambidexterity were also found to have positive relationships with organizational agility. Moreover, the findings revealed that organizational trust and ambidexterity play a mediating role between transactional leadership and organizational agility. According to the results, setting specific, measurable, achievable, relevant, and time-bound (SMART) goals is a key aspect of transactional leadership. Managers can collaborate with employees to set goals aligned with organizational agility, encouraging them to proactively identify and seize opportunities.

Research topics

  • Organizational and Employee Performance
  • Supply Chain Resilience and Risk Management
  • Collaboration in agile enterprises

Sustainable Development Goals

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DOI: 10.3390/su151914337

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