The Relationship Between Transformational Leadership and Organisational Learning Capability with the Mediating Role of Perceived Human Resource Effectiveness

The study investigates the relationship between transformational leadership (TL) and organisational learning capability (OLC) and explores the mediating role of human resource (HR) effectiveness. A quantitative survey method was used to gather data from the software industry in Pakistan through a self-administered questionnaire (N = 504). Both exploratory and confirmatory factor analyses were conducted to check the reliability and validity of the research instrument. In addition, structural equation modelling (SEM) was used to test the proposed hypotheses. Research findings have demonstrated that TL positively affects OLC in software companies. Moreover, perceived HR effectiveness mediates the relationship between TL and OLC. Current research has several theoretical and practical implications as it extends the ability-motivation-opportunity (AMO) theory by considering perceived HR effectiveness as an important facilitator of a firm’s learning capability. This study provides valuable insights for organisational leaders to ensure HR effectiveness in terms of HR practices including recruitment, training and compensation for the development of learning capabilities. It also recommends managers to adopt TL for utilising HR effectiveness in order to improve learning at an organisational level.