Substitutes or complements? Individual-focused and group-focused transformational leadership in different organizational structures in new firms
Purpose The significant performance implications of individual-focused and group-focused transformational leadership have been documented for established firms, but the issue of whether they are complementary or substitutive still remains a puzzle, and whether their relationship differs in new firms remains unanswered. The purpose of this paper is to investigate the relationship between individual-focused and group-focused transformational leadership in different organizational structures in new firms. Design/methodology/approach The study draws on survey data of 209 questionnaires from 63 teams in 63 new firms in China. Findings The results suggest that individual-focused and group-focused transformational leadership are substitutive when the organizational structure is mechanistic, and are complementary when the structure is organic. Originality/value The study contributes to the debate on the relationship between individual-focused and group-focused transformational leadership by comparing organizational structure characteristics and offering a comprehensive understanding of the issue.