Examining the effect of leadership styles on organizational effectiveness in the oil and gas sector: does knowledge acquisition capacity matter?

Abstract

Purpose

The purpose of this study is to investigate the relationship between leadership styles and organizational effectiveness in the oil and gas industry, with a particular focus on the moderating role of knowledge acquisition capacity (KAC).

Design/methodology/approach

Using a survey research design, data was collected from 322 respondents comprising faculty employees in the upstream, midstream and downstream of the oil and gas sector in Ghana. The data were analyzed by using the ordinary least squares approach to structural equation modelling with the use of SPSS and Amos software.

Findings

The findings contribute to the existing body of knowledge by confirming the positive associations between transformational and transactional leadership styles and organizational effectiveness. Moreover, the study highlights the significant moderating role of KAC, shedding light on the interaction between leadership styles and the ability to acquire and integrate external knowledge.

Originality/value

By investigating the influence of KAC, which represents a company’s ability to acquire and integrate external knowledge, this study provides a deeper understanding of how leadership styles interact with knowledge acquisition to shape organizational effectiveness. The study makes a contribution to the upper-echelon theory and a practice-knowledge contribution for managers in the oil and gas industry in Ghana.