Strategic Adaptation as a Mediating Variable in the Relationship Between Transformational Leadership and Crisis Management Strategies. (A Case Study of the Arab Islamic Bank)

Abstract

The study aimed to investigate strategic adaptation as a mediating variable in the relationship between transformational leadership and crisis management strategies, using the Arab Islamic Bank as a case study. Specifically, it examined whether the components of transformational leadership—idealized influence, intellectual stimulation, inspirational motivation, and individualized consideration—are related to the application of crisis management strategies, including preventive, corrective, and proactive strategies, with strategic adaptation—measured through institutional flexibility, innovation, and sustainability capacity—serving as a mediating factor. To achieve these objectives, the researcher employed the descriptive analytical method. The study population consisted of all employees of the Arab Islamic Bank in Palestine, totaling 714 staff members. A stratified random proportional sample of 250 employees was selected. Data were analyzed using Smart PLS 4 statistical software. The study's key findings revealed a strong, positive, and statistically significant relationship between transformational leadership and crisis management strategies in the Arab Islamic Bank. Furthermore, strategic adaptation was found to have a significant mediating effect in the relationship between the dimensions of transformational leadership and the implementation of crisis management strategies. The results also showed no statistically significant differences in respondents' perceptions regarding the mediating role of strategic adaptation attributable to demographic variables (gender, academic qualification, job title, years of experience, or governorate). Among the most important recommendations was the integration of strategic adaptation into the leadership policies of Islamic banks operating in Palestine, as it represents a key factor in enhancing the link between effective leadership and successful crisis response.