Transformational Leadership and AI-Enabled Total Quality Management in School and Business Management: Pathways Toward Sustainable Organizational Performance

Abstract

As organizations navigate rapid digital transformation, leadership and technology increasingly work together to shape sustainable organizational outcomes. This study examines how transformational leadership and AI-enabled Total Quality Management (TQM) influence sustainable organizational performance in both school and business management contexts. Using a quantitative research design, data were collected through a structured survey questionnaire administered to 342 administrators, managers, and supervisors from educational institutions and business organizations. The data were analyzed using Structural Equation Modeling (SEM) to examine the relationships among the variables. The results indicate that transformational leadership significantly influences the implementation of AI-enabled Total Quality Management (β = 0.62, p < 0.001), highlighting the role of leadership in facilitating the adoption of technology-driven quality management systems. Furthermore, AI-enabled TQM significantly affects sustainable organizational performance (β = 0.54, p < 0.001), suggesting that the integration of artificial intelligence within quality management practices enhances operational efficiency, innovation capacity, and long-term sustainability. The findings also show that transformational leadership directly influences sustainable organizational performance (β = 0.31, p < 0.01). In addition, mediation analysis confirms that AI-enabled TQM partially mediates the relationship between transformational leadership and organizational performance, indicating that leadership becomes more effective when supported by intelligent quality management systems. Overall, the study highlights the importance of integrating transformational leadership and AI-enabled quality management practices to strengthen organizational effectiveness and support sustainable performance in both educational and business organizations. Keywords: transformational leadership; artificial intelligence; total quality management; sustainable organizational performance; digital transformation.