The Impact of Strategic Leadership Styles on Financial Performance in Libyan Oil and Gas Industry

Abstract

Purpose: The primary objective of this study is to explore the impact of strategic leadership styles on the financial performance of the Libyan oil and gas industry. This is critical considering the industry's role as a mainstay of the Libyan economy and its notable decline over the past decade.
 
 Design/Methodology/Data Analysis: To achieve the study's goals, a cross-sectional approach was employed to accurately reflect the current state of affairs. A quantitative methodology was deemed suitable for this research. Data collection was conducted using a questionnaire distributed among participants. The study's population, as reported by the National Oil Corporation (NOC), was 53,361, with a minimum sample size of 346 staff from various oil and gas companies. This sample size was calculated based on Krejcie and Morgan's (1970) optimal sample size table.
 
 Findings: The research unearthed several key findings. Firstly, it was determined that there is no significant correlation between strategic decision-making and financial performance in Libyan oil and gas companies. However, a negative and significant relationship was identified between human resource management (HRM) activities and financial performance. Conversely, a positive and significant connection was observed between motivational and influential leadership and financial performance within these companies.
 
 Originality/Value: This study adds to the existing body of knowledge by providing empirical evidence on the influence of different strategic leadership styles on financial outcomes in the context of the Libyan oil and gas sector, a subject that has not been extensively explored previously.
 
 Practical Implications: Based on the findings, the research advocates for the oil and gas companies in Libya to prioritize the development and implementation of effective strategic leadership practices. Such measures are suggested to enhance financial performance and secure a competitive edge in the marketplace.