The Moderating Effect of Organizational Culture on the Relationship Between Leadership Styles and Quality Management Practices in Public Hospitals in Saudi Arabia

The effectiveness of quality management initiatives resulting in sustainable competitive advantage and enhanced business performance has been a major subject of interest for business and academia alike. The quality management literature frequently cites the importance of leadership, but little research has been done to evaluate the linkages between leadership styles and quality management practices. This study examined the relationships between leadership styles (transformational, transactional, and laissez-faire), and quality management practices in Saudi public hospitals. The study also examined the moderating effect of organizational culture on these relationships. This study adapted and integrated a Deming-based quality management model with a multi-dimensional leadership model. It tied the foregoing to the organizational culture to reveal how organizational culture is related to leadership styles and quality management practices. A quantitative research design was adopted to collect data, test hypotheses, and answer the research questions. A cross-sectional survey method was used to conduct this study. A survey package was sent to 182 public hospitals in Saudi Arabia, and 140 were returned, giving a response rate of 77 percent. Results of the study revealed that the transformational leadership style has a significant, positive relationship with quality management practices. However, the transactional and laissez-faire leadership styles were found to significantly and negatively relate to quality management practices. Furthermore, the results showed that organizational culture has a moderating effect on the relationship between leadership styles and quality management practices. Based on the results, it is recommended that hospitals recruit leaders with transformational style, and also hospital directors may opt for a quality management approach that is suitable to the existing organizational culture or they may attempt to modify the existing culture.