Associating leadership style with firm performance: Mediating – moderating effects of learning orientation and organizational culture

Drawing upon leadership theory, we explored the relationship between leadership styles, learning orientation, and firm performance. We also tested the moderating role of organization culture between learning orientation and firm performance. To achieve the objectives, we shared a questionnaire with four Chinese industries: textile, manufacturing, finance, and telecommunications. As a result, 362 responses were received and analyzed using SPSS 25 and IBM AMOS 24. We conducted an exploratory factor analysis (EFA) and a confirmatory factor analysis (CFA) for the construct’s reliability and validity before actually employing structural equation modeling (SEM) for modeled relationships. The results demonstrate that leadership style has considerably favorable effects on firm performance. Similarly, leadership style substantially influences learning orientation. Findings also reveal that learning orientation positively affects firm performance. Consequently, learning orientation positively mediates the relationship between leadership style and firm performance. Our study also found a significant positive moderating effect of organizational culture on learning orientation and firm performance. The results of our study offer practical implications for stakeholders, policymakers, and managers, giving them an overview of how and when choosing a leader with a particular style can impact their learning orientation and improve their performance.