The Role of Transformational Leadership in Achieving Governance Principles in the Islamic Banks in Yemen

Abstract

This study aimed to investigate the role of transformational leadership in achieving governance principles and to identify any statistical differences attributed to the bank variables, including bank name, size of deposits, number of branches, and year of incorporation. In order to achieve the study objectives, the analytical descriptive method was used; and since the population was small, the complete census method was used to select the sample. The data were collected by a questionnaire which was distributed to (143) employees; 132 of whom responded. After the data were processed and analyzed by the SPSS, the study results revealed that there was a statistically significant role for the transformational leadership dimensions in achieving the governance principles in Islamic banks in Yemen. The results showed that the individualized consideration recorded the highest role in achieving the governance principles, followed by the intellectual stimulation, and then by inspirational motivation. The last dimension, which had the lowest role in achieving the governance principles, was idealized impact. The results also revealed that there were statistically significant differences due to the bank variables (bank’s name, size of the deposits, number of branches), whereas there were no statistically significant differences due to the variable of (year of incorporation). The study recommended that banks should pay more attention to transformational leadership in terms of practice and training of their leaders as well as promoting the culture of practice, which would lead to improving the performance of banks. Keywords: Islamic banks, achieving governance principles, transformational leadership, Yemen.