Abstract:
The purpose of this research is to show and evaluate the effect of the
leadership styles (Transformational and Transactional Leadership) of managers in
real estate businesses in Istanbul on the financial performance of the organization. In
addition, the research aims to compare transformational leaders and transactional
leadership styles. There is some evidence that different leadership styles have an
impact on the performance of an organization. In addition, some results have been
obtained showing that the application of different leadership styles in the same
organization also causes different results. Financial performance is one of these
results. In recent years, the real estate sector in Turkey has developed significantly
and many foreign buyers are investing in this sector. In this context, it is necessary to
grasp the leadership styles of such organizations and their relationship with financial
performance. For this purpose, data were collected from 94 real estate organizations
in Turkey for the research. Results were tested using linear regression analysis.
The results show that there is a positive relationship between transactional
and transformational leadership styles with financial performance. The results of this
research will provide guidelines to assist investors, managers, and academics in
understanding the importance of transformational and transactional leadership styles
in creating and sustaining financially successful firm performance in developing
countries. The results suggest that businesses that want to be more competitive,
especially in the real estate sector, should consider adopting a transformational
leadership style as it is associated with higher financial performance and
sustainability than transactional leadership styles
