Dear Imran Siddiqui

Transformational leadership, as a moderator, can weaken the relationship between an independent variable (e.g., a new process) and a dependent variable (e.g., performance) by acting as a substitute or buffer. In instances where such leadership is already exceptionally strong, its pervasive influence can diminish the perceived necessity or impact of other factors. For example, if a leader is already highly effective at motivating employees and fostering a climate of innovation, the introduction of a new, rigid operational procedure (the independent variable) might have a less dramatic effect on performance outcomes than anticipated. The leader’s established practices may already be achieving high performance, thereby suppressing the additional explanatory power of the new procedure and resulting in a weaker observed statistical relationship.

This apparent weakening does not contradict the well-documented positive impact of transformational leadership; rather, it refines our understanding of its role within a specific context. The moderating variable effectively absorbs some of the variance that would otherwise be attributed to the independent variable, suggesting that the leader’s influence can make other formal initiatives less critical for success. Consequently, in a highly transformational environment, the direct effect of a structural change on performance may be attenuated because the leader’s actions have already cultivated a workforce that is adaptive and high-performing, less reliant on specific procedural mandates to achieve desired outcomes.

I hope this helps.