International Journal of Academic Research in Business and Social Sciences

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Strategic Impacts of Transformational Leadership on Organizational Performance and Institutional Sustainability in Private Higher Education in Banglades

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Iftekharul Islam Chowdhury Siam, Mohammad Khairul Islam Juman, Md Tariqul Islam Chowdhury, Kazi Farhana Yeasmin

Pages 407-437 Received: 28 Nov, 2025 Revised: 22 Dec, 2025 Published Online: 10 Jan, 2026

http://dx.doi.org/10.46886/IJARBSS/v16-i1/20123
This study investigates the influence of transformational leadership, organizational culture and strategic planning and governance on institutional sustainability in private higher education institutions in Bangladesh. As the sector expands rapidly, concerns regarding institutional stability, quality assurance and long term performance have become increasingly important. The study aims to identify the key organizational factors that contribute to sustainable institutional development. A quantitative research approach was used and data were collected from academic and administrative staff across selected private universities. Partial Least Squares Structural Equation Modeling was employed to assess the measurement and structural models. The results confirmed strong reliability and validity, with all constructs demonstrating acceptable loading values and composite reliability scores. Structural analysis revealed that transformational leadership (? = 0.34, p < 0.001), organizational culture (? = 0.41, p < 0.001) and strategic planning and governance (? = 0.29, p < 0.001) each have a positive and significant effect on institutional sustainability. Organizational culture emerged as the strongest predictor among the three. The model explained 62 percent of the variance in institutional sustainability, indicating a substantial level of explanatory power. These findings suggest that strengthening internal leadership practices, fostering a positive organizational culture and improving governance structures are essential for enhancing sustainability in private universities. The study contributes to existing literature by integrating leadership, cultural and governance perspectives within a unified sustainability framework. It also provides practical guidance for university leaders and policymakers seeking to enhance long term institutional resilience. Overall, the results highlight the importance of internal organizational dynamics in shaping sustainable development within higher education institutions.
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