Effects of transformational and transactional leadership styles on construction project performance in Myanmar: the mediating role of team climate

This study examines how transformational and transactional leadership influence project performance in Myanmar’s construction sector, with a focus on the mediating role of team climate. Project performance is assessed using three key outcomes: project success, client satisfaction, and safety performance. A structured questionnaire survey was distributed to project managers in Myanmar’s construction industry, resulting in 140 valid responses. Data were analyzed using descriptive statistics and structural equation modeling (SEM). Confirmatory factor analysis (CFA) was conducted to assess the validity and reliability of the measurement model. The results show that transformational leadership has significant positive effects on project success, client satisfaction, and safety performance. Transactional leadership does not directly affect project performance; however, it has a significant positive influence on team climate. Team climate significantly enhances all three dimensions of project performance and mediates the relationships between leadership styles and performance outcomes. Partial mediation was found for transformational leadership, while transactional leadership demonstrated full mediation through team climate for selected performance dimensions. This study extends construction leadership research by providing empirical evidence from Myanmar, a developing construction context. It contributes to theory by validating team climate as a key mechanism explaining how leadership translates into multidimensional project performance outcomes.