Porcelain Publishing / BJBPR / Volume 3 / Issue 1 / DOI: 10.47297/ppibjbpr2027030102
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Transactional Leadership's Influence on Workplace Diversity and Inclusion in Academia: A Moderation Analysis

Abhishek N1 Keyurkumar M Nayak2 Mallikarjun M Maradi3 Saranya Thaloor4 Kawaljeet Kaur Sygal5
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1 Government First Grade College, Halebeedu, India
2 Garware institute of Career Education and Development, Mumbai University, India
3 Bagalkot University, India
4 Department of Mass Communication, SK Somaiya College Somaiya Vidyavihar University, Mumbai, India
5 Department of Accounting and Finance SK Somaiya College, Somaiya Vidyavihar University, Mumbai, India
Published: 22 September 2026
© 2026 by the Author(s). This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/)
Abstract

The main purpose of this research is to analyze and observe the impact of perceived inclusion and employee engagement on organizational performance in academics, with the moderating role of transactional leadership also mentioned. Quantitative approach is used in this study. The data (n=356) were mentioned and evaluated in the study with respondents from the academic sectors of various Universities in Maharashtra. PLS-SEM was used for analysis and hypothesis testing, in which the researcher created a similar conceptual model and assessment methodologies for its measurements. The findings clearly show that workforce diversity, perceived inclusion and employee engagement have a positive impact on organizational performance; however, transactional leadership was found to significantly and negatively moderate the relationship between employee engagement and organizational performance, rejecting the originally hypothesised positive moderating role and pointing to an important boundary condition for transactional leadership theory in academic settings. It was found that employee engagement and organizational performance go hand-in-hand in the academic sector. The preference for different types of leaders in academics other than transactional leadership is also a major underlying factor in this study. This study's central contribution is empirical rather than presumed: by showing that transactional leadership can weaken, rather than strengthen, the translation of faculty engagement into institutional performance, it identifies a specific boundary condition under which transactional leadership becomes a liability rather than an asset in academic administration. However, there remains a gap in the research concerning the interplay between transactional leadership, perceived inclusion, and faculty engagement. Future investigations should explore the interaction between various leadership styles and their long-term impacts on academic performance. The implications of this study extend beyond theoretical contributions by connecting the findings with Sustainable Development Goals (SDGs), particularly SDG 4 (Quality Education), SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and SDG 9 (Industry, Innovation, and Infrastructure). This study emphasizes the necessity of structured leadership in academic institutions to enhance faculty performance and institutional achievement. Furthermore, it underlines the importance of diversity, inclusion, and equitable leadership distribution in fostering innovation and e ngagement in the academic environment. The study concludes that the state of being together and a sense of happiness in teaching are influenced by multiple factors, such as diversity, participation, and many more for faculty members. These findings can enhance in bringing better teaching practices and pedagogical advancements for students by improving their leadership roles and environment.

Keywords
Higher education
Transactional Leadership
workforce diversity
employee engagement
perceived inclusion
organisational performance
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British Journal of Business and Psychology Research, Electronic ISSN: 2977-8875 Print ISSN: 2978-4581, Published by Porcelain Publishing