Abstract:
This study examines the mediating role of communication in the relationship between leadership styles
of managers—transformational and transactional leadership—and employee behavior within Sri Lanka’s footwear
industry. Using a quantitative research approach, data were collected from 384 respondents to assess the extent to
which leadership styles impact employee behavior and the role of communication as a mediator. The findings
reveal that transformational leadership has a significantly stronger positive influence on employee behavior
compared to transactional leadership. Transformational leaders foster higher engagement, creativity, and job
satisfaction by inspiring and motivating employees, while transactional leaders focus on structured rewards and
compliance. Communication emerged as a key factor in strengthening the link between leadership styles and
employee behavior. The study found that transformational leadership enhances communication effectiveness,
which in turn positively impacts employee behavior. Similarly, although transactional leadership showed a
moderate direct effect on employee behavior, its influence was also amplified through communication. The Sobel
test confirmed the statistical significance of communication as a mediating variable in both leadership styles. The
research underscores the critical role of leadership and effective communication in driving positive organizational
outcomes, particularly in dynamic and competitive industries such as footwear manufacturing. It highlights that
organizations should emphasize transformational leadership practices and foster open, clear communication
channels to enhance employee motivation and productivity. The findings contribute to leadership and
organizational behavior literature by offering insights specific to the Sri Lankan industrial context. The study
suggests practical implications for business leaders, emphasizing the need for leadership training programs
focusing on communication and employee engagement. Policymakers and industry stakeholders can also use these
insights to develop strategies that enhance leadership effectiveness and organizational performance. Future
research is recommended to explore leadership dynamics in other industries and cultural settings to further validate
these findings.
