Services industry is an incentive power of social and economic development and it has great influence on development of the leading sectors of the economy. This thesis analyzed the transformational and transactional leadership approaches on Mongolian services industry. The research sample was 304 managers of Mongolian services industry and most of them worked in small-sized services firms.
The research found that transformational leadership was higher than transactional leadership in Mongolian services industry; and the wholesale & retail trade industry had the lowest scores for both transformational and transactional leadership approaches.
Policy recommendations were developed based on the findings, and learning leadership approaches is essential in Mongolian services industry. Effective leadership in the service industry is essential in achieving financial results and competitive advantage.

Services industry is an incentive power of social and economic development and it has great influence on development of the leading sectors of the economy. This thesis analyzed the transformational and transactional leadership approaches on Mongolian services industry. The research sample was 304 managers of Mongolian services industry and most of them worked in small-sized services firms.
The research found that transformational leadership was higher than transactional leadership in Mongolian services industry; and the wholesale & retail trade industry had the lowest scores for both transformational and transactional leadership approaches.
Policy recommendations were developed based on the findings, and learning leadership approaches is essential in Mongolian services industry. Effective leadership in the service industry is essential in achieving financial results and competitive advantage.

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(2) Websites:
1. Bank of Mongolia. http://www.mongolbank.mn/
2. Central Intelligence Agency, USA. http://www.cia.gov/
3. Information, Communications Technology and Post Authority of Mongolia.
http://itpta.gov.mn/
4. Ministry of Education and Science of Mongolia. http://www.meds.gov.mn//
5. Ministry of Road and Transportation of Mongolia. http://mrt.gov.mn/
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7. Ministry of Economic Development of Mongolia. http://www.med.gov.mn/mn/
8. Ministry of Industry and Agriculture of Mongolia.
http://www.mofa.gov.mn/new/
9. Ministry of Health of Mongolia. http://www.moh.mn/