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The Impact of Governance Transparency on Public Project Success: Transformational Leadership and Stakeholder Trust as Moderators
Omer Farooq, Zia ul Haq
Abstract:
Public sector projects are critical drivers of socio-economic development, yet they frequently suffer from performance shortfalls due to systemic governance deficits. This study investigates the impact of governance transparency on public project success, specifically examining the moderating roles of transformational leadership and stakeholder trust. Grounded in Stakeholder Theory, Agency Theory, and Social Exchange Theory, the research addresses a critical gap in project management literature by exploring how relational and behavioral factors amplify the benefits of transparent governance in developing economies. Employing a quantitative, cross-sectional research design, data were collected via structured questionnaires from 280 public sector professionals managing projects in Lahore, Pakistan, including personnel from the Lahore Development Authority (LDA), Communication and Works (C&W) Department, WASA, and the Punjab Mass Transit Authority (PMTA). Data analysis was conducted using hierarchical regression and Hayes’ PROCESS Macro (Model 2) in SPSS. The findings reveal that governance transparency has a significant, positive direct effect on public project success. Furthermore, both transformational leadership and stakeholder trust act as significant positive moderators, strengthening this relationship. The study concludes that transparency alone is insufficient to guarantee project success in rigid, hierarchical bureaucracies; it must be actively operationalized by transformational leaders and supported by high levels of stakeholder trust to mitigate cynicism and foster cooperative problem-solving. These findings offer actionable insights for policymakers and project managers in Pakistan and similar developing contexts, emphasizing the need to couple structural transparency mandates with leadership development and trust-building initiatives.
Keywords:
Governance Transparency; Public Project Success; Transformational Leadership; Stakeholder Trust; Public Sector Project Management; Stakeholder Theory; Pakistan.
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