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social performance when transactional leadership is weak, while no such improvement in the social performance occurs when transactional leadership style is strong.
The reason is that the transactional leader increasingly engages in task activities
and control of the defined operation and remains active in routine and traditional
works. The findings confirm that managers should consider the style of the leader in
governing the supply chain relationship when deciding which governance mechanism
should be used to manage social sustainability. Furthermore, before implementing
the contract, the decision-maker must be aware of the leadership style (Blome et al.
2017).
6 Conclusion
The findings of this chapter conclude that translational leadership (TRN) is essential
to improve overall social performance. This study contributes to the accomplishment of UN sustainable development goal No. 17 by indicating that to advance
performance in sustainability, more efforts on inter-firm engagement are needed and
cross border partnerships are required. Previous studies typically focused on leadership style and its effects on corporate social responsibility; this study differs from
other studies as it explores the impact of transactional leadership style on sustainability performance. It suggests that transactional leadership style should be taken
into account in the overall corporate sustainability strategy of a company. Therefore,
the study argues that a relational view of governance is not relevant to manufacturersexporters, because transactional leadership style among the key decision-makers may
not play a key role in expected performance outcomes. Finally, it is concluded that
transactional leadership attempts to balance stakeholder interests and relationships
but also seeks to reach agreements with long term focus on reducing environmental
damages with improving processes and procedures. However, a broadened social
sustainability vision of transactional leadership may allow the organisation to more
effectively align with the changing demands of partners on social issues and capitalise
on integrated practices for achieving sustainable development goals.
Our results highlight the importance of roles that transactional leadership plays
in the improvement of corporate social performance. This study has contributed to
much needed empirical evidence concerning the role of leadership styles in corporate sustainability. Within firms, transactional leadership delivers/ensures/guarantees
high corporate responsibility and acting to achieve the greatest benefits for the organization and use supply chain process knowledge to act in the interest of key organisational stakeholders as well as enhance organizational social performance. This
study advances the understanding and bridges leadership literature with corporate
sustainability to provide empirical evidence on the transactional leadership effect
on the relationship contract governance and sustainability performance. The results
support the view that transactional leader is likely to exhibit sustainable leadership by,
among others, promoting social performance with contract governance that advances
the well-being of an individual and society and decreases environmental damage.
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