Purpose: The present study aims to investigate the relationship between institutional influence and performance, mediated through transformational leadership (TL) and moderated by barriers, situational factors, communication and implementation. Design/methodology/approach: Using a structured survey instrument, data were collected from 370 faculty members from 31 higher educational institutions in southern India. After checking the psychometric properties of the instrument, the authors used Hayes's PROCESS to test the direct hypotheses and three-way interactions. Findings: The results revealed that TL mediated the relationship between institutional influence and performance. Further, the findings supported the three-way interactions between (1) institutional influence, barriers and communication positively affecting TL; and (2) TL, situational factors and implementation affecting the performance of faculty members. Research limitations/implications: This study underscores the importance of TL for the smooth functioning of higher educational institutions and achieving superior performance, especially in the new normal context after the global pandemic. Practical implications: This study makes several significant recommendations to administrators in higher educational institutions, in addition to contributing to the vast literature on TL. The study suggests that administrators must invest resources in developing TL skills so that employees reach their fullest potential and contribute to achieving organizational goals. In addition, leaders in organizations need to exercise a transformational style to combat the new normal post-pandemic academic environment. Originality/value: This study provides new insights into the importance of TL style and institutional influence to enhance performance. To the best of our knowledge, the conceptual model developed and tested the first of its kind in India, significantly contributing to theory and practice.