Relationship Between Leadership Behaviour and Firm Performance in Ready Made Garments (Rmg) Industry of Bangladesh

Abstract

Purpose The primary objective of this research is to investigate and elaborate on the relationship between leadership behaviour and firm performance in the context of Bangladesh RMG (Ready-Made Garments) firms. The study aimed to contribute to the existing literature by exploring the role of leadership behaviour in the competitive advantage process, addressing gaps in understanding within the RMG industry. Design/Methodology/Approach: The research employs a mixed-method approach, incorporating qualitative and quantitative research methods. The conceptual model is developed through an extensive literature review and subsequently tested, refined, and validated. The empirical analysis involves 400 target respondents, and data is processed using PLS structural equation modelling principles. This includes structural path analysis, hypothesis testing, mediation, and moderation analyses. Findings: Empirical findings align with the resource-based view, confirming that Leadership Behaviours are intangible resources. Furthermore, the study identifies relationship-oriented behaviour as the most significant influence on the relationship between leadership behaviour and firm performance. Originality: This research delves into the Resource View's black box in firms. It establishes Dynamic Capabilities as a theoretically well-founded and valuable construct for understanding the leadership behaviour of strategic management. Practical Implications: providing insights into how leadership behaviour can impact firm performance. Identifying Relation Behaviours as particularly influential suggests that fostering positive relationships within the organisation may be a key strategy for leaders to enhance overall performance. Social Implications: the findings may have implications for workplace relationships, employee satisfaction, and potentially broader societal aspects influenced by the performance of RMG firms.