Leadership Styles and Financial Performance: A Study of the Pharmaceutical Industry in Metro Manila, Philippines

Erlinda L. Labalan, MBA
https://orcid.org/ 0009-0000-7849-1362
ellabalan.2020@gmail.com
University of Perpetual Help System DALTA, Las Piňas City, Philippines

DOI: https://doi.org/10.54476/apjaet/47838

                                                                                          Abstract

This study investigates the influence of leadership styles on financial performance within the pharmaceutical industry in Metro Manila, Philippines. Using comparative research design, the study explores how different leadership approaches—transformational, transactional, and laissez-faire—affect organizational outcomes such as revenue growth, profitability, and cost efficiency. A sample of 100 leaders from various pharmaceutical companies was selected using purposive sampling. The study also examines the key challenges faced by leaders in implementing effective leadership styles and provides strategies for enhancing leadership effectiveness and aligning leadership practices with financial goals. The findings indicate that transactional and laissez-faire leadership styles are predominantly practiced in the pharmaceutical industry, with transformational leadership being less common. Transactional leadership was found to be highly effective in achieving short-term financial goals and ensuring operational efficiency, while laissez-faire leadership promoted autonomy and creativity but led to inconsistent financial results. The study also revealed that factors such as age, educational background, and leadership position significantly influence the impact of leadership styles on financial performance. The challenges of resistance to change, high employee turnover, and limited resources were identified as significant barriers to effective leadership. Based on these findings, the study recommends that pharmaceutical companies invest in developing transformational leadership practices, align leadership strategies with financial goals, and implement leadership development programs tailored to industry needs. Additionally, promoting mentorship, fostering diversity within leadership teams, and addressing organizational challenges are key to improving leadership effectiveness and optimizing financial performance.

Keywords: leadership styles, financial performance, pharmaceutical industry

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