Journal of Public Administration

Journal of Public Administration

The Effect of Transformational Leadership on Strategic Rethinking with the Mediating Role of Organizational Trust: A Study of Petrochemical Companies in Assaluyeh

Document Type : Research Paper

Authors
Ebrahim Rajabpour 1
Zeynab Javadi 2
Mohsen Negarande 3
1 Associate Prof., Department of Business Management, Persian Gulf University, Bushehr, Iran.
2 MSc. Student, Department of Strategic Management, Persian Gulf University, Bushehr, Iran.
3 MSc.Student, Department of Strategic Management, Persian Gulf University, Bushehr, Iran.
10.22059/jipa.2026.421123.3991
Abstract
Objective
This study investigates the effect of transformational leadership style on strategic rethinking, with the mediating role of organizational trust in the petrochemical companies of Assaluyeh County.
Methods
In terms of purpose, this research is applied, and in terms of data collection, it is a descriptive-survey study of the correlational type. The statistical population of the study comprised 36 active petrochemical companies in Assaluyeh County. The sample size was estimated at 32 companies based on Cochran's formula, and between 5 and 14 questionnaires were distributed and collected in each company among human resource, information technology, finance, and public relations managers, yielding a total of 216 valid questionnaires. The research instruments consisted of standard questionnaires measuring transformational leadership style, strategic rethinking, and organizational trust. Face and content validity were confirmed by university professors and petrochemical industry experts, and construct validity was examined through confirmatory factor analysis. The reliability of the research questionnaires was also confirmed with a Cronbach's alpha coefficient of 0.855. The data were analyzed using the structural equation modeling approach with the partial least squares method (PLS-SEM), employing SPSS and SmartPLS software.
Results
The results of structural equation modeling showed that transformational leadership style has a positive and significant effect on strategic rethinking (β = 0.331) and on organizational trust (β = 0.694). Organizational trust also has a positive and significant effect on strategic rethinking (β = 0.505), and its mediating role in the relationship between transformational leadership style and strategic rethinking was confirmed (β = 0.350). Accordingly, transformational leadership promotes strategic rethinking capacity in petrochemical organizations both directly and through strengthening organizational trust. A comparison of the direct and indirect effects indicates that a considerable portion of the influence of transformational leadership on strategic rethinking is transmitted through organizational trust, which underscores the importance of a trust-based context in the higher-order cognitive processes of the organization.
Conclusion
Transformational leadership increases strategic rethinking capacity in petrochemical organizations both directly and through strengthening organizational trust. Managers in this industry can provide the ground for the continuous review of assumptions, goals, and strategies by institutionalizing transformational leadership behaviors—including idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration—and by creating a trust climate based on transparency, benevolence, and competence. Developing a culture of genuine employee participation in strategic decision-making and holding regular strategic rethinking sessions can double the effectiveness of this leadership style. In terms of innovation, the present study has taken a step toward developing the strategic rethinking literature by combining three key constructs within the petrochemical industry context and simultaneously testing direct and indirect effects. Given the limitations of the study context, generalizing the results to other industries requires caution. Future research can increase the external validity of the model by adding mediating or moderating variables such as organizational culture and environmental dynamism, as well as by adopting longitudinal approaches. These findings can help policymakers and senior managers in the petrochemical industry to enhance the strategic adaptability of the organization by focusing on human capital, and to create sustainable competitive advantage in the current competitive and highly volatile environment.
Keywords
Organizational trust
Petrochemical industry
Strategic rethinking
Transformational leadership
Subjects
 
 
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Journal of Public Administration
Volume 18, Issue 3
2026
Pages 831-850