Nexus Between Transformational Leadership and Community Development Initiatives in Ghana: Mediating Role of Social Capital

Abstract

The purpose of this study is to investigate the relationship between transformational leadership and community development initiatives in Ghana, with social capital serving as a mediating variable. A quantitative research approach underpinned by a positivist paradigm and explanatory research design was employed. A structured questionnaire was employed to gather data from 384 respondents. Partial Least Squares Structural Equation Modelling was implemented to evaluate the structural models and measurements. The findings indicate that transformational leadership has a significant positive impact on community development initiatives and social capital. Social capital also has a significant impact on community development initiatives and fully mediates the relationship between transformational leadership and development outcomes. These results indicate that transformational leadership indirectly improves development outcomes by fostering social capital. As a result, to promote sustainable community development, leaders and policymakers should prioritize transformational leadership approaches that foster trust, enhance cooperation, and build a strong sense of shared purpose among community members. It is essential to establish social capital to convert leadership into fruitful development initiatives. Finally, this study makes a valuable contribution to the limited empirical literature on the mediating role of social capital in the leadership-development nexus within the Ghanaian context, providing valuable insights for both theory and practice in community development.