This examined the relationship between leadership styles (transformational, transactional, democratic, and autocratic) and organizational performance (operational efficiency and financial stability) in indigenous oil servicing companies in Rivers State. Additionally, it explored the moderating role of innovative capacity in this relationship. The study adopted a positivist philosophical paradigm with a cross-sectional research design. Primary data was collected through a structured questionnaire administered to 118 representatives from eight indigenous oil servicing companies out of targeted population of 85 indigenous oil servicing companies. Data analysis was performed using descriptive statistics and Partial Least Squares-Structural Equation Modelling (PLS-SEM) via SmartPLS v4 to test nine null hypotheses. The study revealed several key findings: (i) transformational leadership positively influenced operational efficiency and financial stability; (ii) transactional leadership had no significant impact on operational efficiency and negatively affected financial stability; (iii) democratic leadership strongly enhanced both operational efficiency and financial stability; (iv) autocratic leadership negatively impacted operational efficiency, with no notable effect on financial stability. Additionally, innovative capacity was found to have no moderating effect on the relationship between leadership styles and organizational performance. The study concluded that leadership styles significantly influence the performance of indigenous oil servicing companies. Transformational and democratic leadership styles were found to be the most effective in enhancing both operational efficiency and financial stability. In contrast, transactional and autocratic leadership styles were less effective or had negative impacts on performance. Based on the findings, the study recommended that indigenous oil servicing companies prioritize transformational and democratic leadership styles to improve performance. Also, managers should reduce reliance on transactional leadership and minimize autocratic practices to avoid hindering employee autonomy. Furthermore, leadership development programs should be emphasized to foster sustainable organizational growth, with a focus on visionary, inclusive, and empowering leadership approaches rather than relying solely on innovation as a performance-enhancing strategy.

Keyword:  Financial Stability, Organizational Performance, Operational Efficiency, Innovative Capacity