The investigation into how a leader's leadership style shapes employee performance remains a perennial interest for scholars and administrators alike. This study delved into the intricacies of this relationship within the context of Vietnamese commercial banks, aiming to assess how a leader's style influences subordinates' work performance, with a focus on the moderating effect of psychological capital. Employing a Structural Equation Modeling (SEM) framework and gathering primary data via a survey administered to banking industry personnel, the analysis unveiled compelling insights. The results revealed that transformational leadership not only directly impacts employee performance but also exerts an indirect positive influence through shaping corporate culture. Furthermore, the study highlighted the pivotal role of positive psychological capital in amplifying the effect of leadership styles on employee performance. Armed with these findings, bank leaders are empowered to make informed decisions regarding leadership approaches and corporate culture, thereby enhancing overall workforce efficiency and organizational effectiveness.
