Abstract
This study aimed to determine the moderating effect of power distance on the relationship between the dimensions of transformational leadership (idealised influence, inspirational motivation, intellectual stimulation, and individualised consideration) and human capital (knowledge, skills, and attitude) with organisational performance among ADNOC employees in the UAE. A quantitative approach is employed involving 381 ADNOC employees using systematic random sampling. Every k-th from an ordered list was chosen to ensure equal representation and minimise selection bias. Data are collected using a structured questionnaire and analysed with Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that among the dimensions of transformational leadership, idealized influence (_=0.212, T=2.906, P=0.004) and individualised consideration (_=0.155, T=2.04, P=0.041) significantly influence organisational performance. However, inspirational motivation (_=0.041, T=0.609, P=0.543) and intellectual stimulation (_=0.104, T=1.367, P=0.172) do not show significant effects. For human capital, none of the dimensions, knowledge (_=0.149, T=1.604, P=0.109), attitude (_=0.016, T=0.219, P=0.826), and skills (_=0.09, T=1.013, P=0.311), significantly predict organisational performance. Additionally, power distance neither significantly moderate the relationships between human capital dimensions and organisational performance (all P values > 0.05), nor does it show a significant direct effect on performance: knowledge (_=0.12, T=1.353, P=0.176), attitude (_=-0.027, T=0.324, P=0.746), skills (_=-0.011, T=0.122, P=0.903), idealized influence (_=0.032, T=0.425, P=0.671), inspirational motivation (_=0.074, T=1.196, P=0.232), intellectual stimulation (_=0.084, T=1.218, P=0.223), and individualized consideration (_=0.091, T=1.059, P=0.29). The findings highlight the complex role of power distance in shaping the effectiveness of leadership and human capital in enhancing organizational performance. In conclusion, fostering transformational leadership and investing in human capital are crucial for sustaining improved organisational outcomes. Meaningful insights are provided for policymakers and managers in the oil and gas industry at ADNOC to enhance organisational performance. Although power distance does not significantly moderate the relationships, understanding its influence remains valuable in guiding leadership and human capital development.