Transformational leadership in contemporary projects: A review of its impact on success and team performance (2020-2025)

Janet Auma Wagude

doi:10.51867/ajernet.6.4.112

Authors

Wagude Auma Janet Rongo University, Kenya https://orcid.org/0000-0002-7791-3292

DOI:

https://doi.org/10.51867/ajernet.6.4.112

Keywords:

Organizational Behavior, Project Management, Project Success, Team Performance, Transformational Leadership

Abstract

This review explores the role of transformational leadership in influencing project success and team performance, focusing on literature published between 2020 and 2025. Transformational leadership, characterized by idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration, is increasingly recognized as a determinant of project outcomes. The findings indicate that transformational leadership enhances project success by fostering team empowerment and collaborative problem-solving and innovation, while simultaneously strengthening team performance through improved communication, adaptability, and motivation. The review identifies gaps in longitudinal and experimental studies, especially within virtual project environments, and emphasizes the importance of contextual factors such as culture, trust, and team climate. Practical implications for project managers and organizations are also discussed, highlighting the value of adaptive leadership in multicultural and remote project teams. Evidence from 2020 to 2025 highlights its role in enabling project teams to navigate complexity and achieve better outcomes. Contextual factors such as culture, trust, and team climate further shape the effectiveness of transformational leadership. Therefore, it is recommended that future studies adopt longitudinal and experimental designs and explore diverse project settings, including virtual and multicultural teams. Project managers should also apply transformational leadership behaviors that build trust, promote innovation, and strengthen team cohesion, while organizations invest in leadership development programs to ensure adaptive, high-performing, and resilient project teams.

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