TRANSFORMATIONAL LEADERSHIP AND FINANCIAL MANAGEMENT AS INTEGRATED GOVERNANCE MECHANISMS FOR ORGANIZATIONAL PERFORMANCE OF A MALAYSIAN STATE EDUCATION TRUST FUND

Abstract

This study examines how transformational leadership (TL) and financial management (FM) operate as integrated governance mechanisms in enhancing organizational performance within a Malaysian state education trust fund. While existing research has established the independent effects of leadership and financial management on organizational outcomes, limited empirical attention has been given to their interaction in public-sector education financing institutions. Drawing on a qualitative case study of the Melaka State Education Trust Fund (TAPEM), data were collected through semi- structured interviews with 20 organizational actors, document analysis, and non- participant observation. Thematic analysis reveals that transformational leadership practice’s ethical role modelling, inspirational vision articulation, intellectual stimulation, and individualized support are most effective when aligned with disciplined financial management practices, including budgeting control, repayment monitoring, and accountability reporting. The findings demonstrate that organizational performance in education trust institutions emerges from the alignment between leadership-driven values and financial governance systems rather than from either dimension alone. The study contributes theoretically by extending contemporary transformational leadership scholarship into the domain of public-sector financial governance and practically by offering evidence-based insights for policymakers and administrators seeking to strengthen organization sustainability, legitimacy, and performances.