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The main aim of any organization is to sustain competitive advantage and considered to be effective between the demands of various stakeholders and the needs of the employees. Based on the previous studies in related field, it has been demonstrated that an appropriate leadership style can influence the success and the economic growth of both the organizations and employees. Therefore, the purpose of this paper is to explain the effects of leadership styles on the organizational performance. Our main focus is on transformational leadership and its role in enabling the increase in organizational performance. We start by underlying the link between transformational leadership and organizational performance and clarify the effects of leadership style on organizational performance and conclude by making some future research propositions.