Transformational leadership and business continuity: a moderated mediation analysis of crisis management and crisis severity

Purpose During crises, leaders focus on ensuring their businesses survive. While various leadership styles have been studied in crisis management, transformational leadership in emerging economies, particularly in relation to crisis severity, business continuity, and crisis management, remains underexplored. This study examines the relationship between transformational leadership and business continuity, mediated by crisis management, and explores the moderating role of crisis severity. Design/methodology/approach Using a cross-sectional design, data were gathered from 384 owners of small and medium-sized organisations in Accra, Ghana, using questionnaires. The data were analyzed using the JASP and PROCESS models. Findings The findings revealed that crisis management mediates the positive relationship between transformational leadership and business continuity. Additionally, crisis severity moderated the relationship between transformational leadership and business continuity. However, while crisis severity did not directly impact the relationship between transformational leadership and crisis management, it significantly moderated the link between transformational leadership and business continuity through crisis management. Originality/value This research extends contingency theory by identifying business continuity as one of the contingency factors in transformational leadership. Utilising moderated mediation analysis, this study offers valuable insights into how transformational leadership influences business continuity, emphasising the critical role of crisis management strategies and the varying impact of crisis severity.