Investigating the Effect of Transformational Leadership In Mutual Fund Accounting and Administration

Mutual fund accounting firms are experiencing rapid change through the deployment of increased automation and artificial intelligence. Such an environment is an ideal playground for transformational leaders. This study investigated how the transformational leadership of midlevel managers influenced subordinates at a Mutual Fund Accounting and Administration division. The Leadership Practices Inventory was used to investigate how five components of transformational leadership were related to subordinates’ job satisfaction, organizational commitment, and productivity. A partial least squares path modeling analysis was conducted. The results suggest that enabling others to act is significantly associated with subordinates’ job satisfaction. Inspiring a shared vision is significantly associated with subordinates’ organizational commitment. And modeling the way and inspiring a shared vision are associated with subordinates’ productivity. This research provides empirical evidence to support the continued use of the Leadership Practices Inventory in future academic research and in transformational leadership training programs for practitioners.