The Mediating Role of Leadership Styles in Organizational Development Interventions and Employee Engagement: Insights from Government-Linked Organizations in Malaysia

This study examines the mediating role of leadership styles in the relationship between Organizational Development (OD) interventions—process, structural, and strategy—and employee engagement within Malaysian government-linked organizations (GLOs). Employee engagement is pivotal for organizational success, particularly in hierarchical environments where complex governance structures and accountability frameworks prevail. OD interventions, including process improvements, structural adjustments, and strategy alignments, are essential for fostering engagement, yet their effectiveness heavily relies on leadership styles. Transformational, transactional, democratic, and autocratic leadership are explored as mediators to determine their influence on the success of OD interventions. The findings reveal that leadership styles significantly shape the impact of OD interventions on employee engagement. Transformational leadership enhances engagement by inspiring innovation and aligning employee aspirations with organizational goals. Transactional leadership emphasizes accountability and task clarity, while democratic leadership fosters collaboration and inclusivity. Autocratic leadership provides stability and precision, particularly during structural changes. Mediation analysis highlights that leadership styles differentially mediate the relationship between specific OD interventions and engagement outcomes, with contextual factors influencing their effectiveness. This study contributes to the theoretical understanding of leadership’s role in employee engagement and provides practical insights for enhancing leadership strategies in GLOs. By aligning leadership approaches with OD interventions, organizations can improve employee motivation, adaptability, and overall performance. These findings emphasize the importance of adaptive leadership in navigating organizational challenges and driving sustainable growth in complex environments.