Transactional Leadership and Employee Performance: The Mediating Role of Organizational Citizenship Behavior in the Manufacturing Sector

Abstract

This study investigates the effect of transactional leadership on worker
performance through the mediating function of Organizational
Citizenship Behavior (OCB). While transactional leadership is
traditionally characterized by structured rewards and clear
expectations, its influence through relational pathways like OCB
remains underexplored in manufacturing contexts. A cross-sectional
quantitative approach was employed, surveying 290 employees from
Chashma Sugar Mills in Dera Ismail Khan, Pakistan. Standardized
instruments were used to assess leadership behavior, OCB, and
employee performance, and data were analyzed using SPSS version 25
with reliability checks, correlation analysis, regression modeling, and
mediation testing via Hayes’ PROCESS Macro Model 4. The findings
demonstrate that transactional leadership significantly enhances
employee performance both directly and indirectly through OCB.
Mediation results confirm that OCB partially explains how
transactional leadership contributes to improved performance
outcomes. These findings indicate that developing citizenship
behaviors in addition to transactional management practices can pay
big dividends in employee effectiveness. It contributes to the
leadership literature and provides applied implications for increasing
productivity of the factory workforce in manufacturing companies.