The relationship between leadership style and employee performance has long been a key topic of interest for scholars and organizational leaders. This study examined this dynamic in the context of Vietnamese commercial banks, specifically examining how leadership style affects employee performance, with a particular focus on the moderating role of psychological capital. Using structural equation modeling (SEM) and a survey of banking industry employees, the research uncovered important findings. The results showed that transformational leadership has a direct positive impact on employee performance and also indirectly enhances performance by shaping organizational culture. Furthermore, the study emphasized the crucial role of psychological capital in strengthening the influence of leadership styles on employee performance. These insights provide bank leaders with valuable guidance for optimizing leadership strategies and corporate culture to improve overall workforce productivity and organizational success.
