Transformational leadership and corporate entrepreneurship

2017 ◽  
Vol 38 (6) ◽  
pp. 812-833 ◽  
Author(s):  
Yi-Ying Chang ◽  
Che-Yuan Chang ◽  
Chung-Wen Chen
Keyword(s):  
Transformational Leadership ◽  
Collective Efficacy ◽  
Corporate Entrepreneurship ◽  
Transformational Leaders ◽  
Firm Level ◽  
Content Type ◽  
Unit Level ◽  
Empowerment Climate ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine how transformational leadership may relate to corporate entrepreneurship by adopting a multilevel approach. The authors also theorized and tested the top-down and bottom-up intermediate process linking transformational leadership and corporate entrepreneurship. Design/methodology/approach Multisource data across different timeframes were collected from 129 managers and 244 employees from 55 units of 27 firms. Findings The results showed that transformational leadership and corporate entrepreneurship were positively related at the unit level. Furthermore, unit-level collective efficacy mediated the relationship between unit-level transformational leadership and unit-level corporate entrepreneurship. The authors also found that the firm-level empowerment climate moderated the indirect effect of unit-level collective efficacy on the relationship between unit transformational leadership and unit-level corporate entrepreneurship. Originality/value First, the goal of this study is to extend the single focus of transformational leadership on corporate entrepreneurship (e.g. Ling et al., 2008) and develop a more thoughtful approach on determining how transformational leaders influence corporate entrepreneurship across levels. This study responds to calls for research to look at the impact of unit-level transformational leaders, such as middle managers, across levels (Ren and Guo, 2011) and creates a multilevel framework in which transformational leaders at the unit level influence the appearance of corporate entrepreneurship at the unit level.

High-performance work systems, joint impact of transformational leadership, an empowerment climate and organizational ambidexterity

2016 ◽  
Vol 29 (3) ◽  
pp. 424-444 ◽  
Author(s):  
Yi-Ying Chang
Keyword(s):  
Transformational Leadership ◽  
High Performance ◽  
Organizational Ambidexterity ◽  
Firm Level ◽  
Work Systems ◽  
Content Type ◽  
High Performance Work Systems ◽  
Unit Level ◽  
Empowerment Climate ◽  
The Impact

Purpose – The purpose of this paper is to test a multilevel model, supported by an ambidexterity perspective, to examine the process linking high-performance work systems (HPWS) and organizational ambidexterity using both unit- and firm-level analyses. Design/methodology/approach – The author collected multisource and multilevel data from 346 employees and 184 managers of 33 electronic engineering firms. Findings – The results revealed that unit HPWS were positively related to unit organizational ambidexterity. The author considers that the role of firm-level transformational leadership (TFL) is to create a climate of autonomy that can be delegated to promote organizational ambidexterity within units. Furthermore, a firm-level empowerment climate moderates the effect of unit-level HPWS on a unit’s organizational ambidexterity. The author contributes to the research on leadership and ambidexterity by revealing the impact of HPWS as experienced in the unit- and of firm-level TFL. The author also identify boundary conditions for pursuing unit organizational ambidexterity. Originality/value – Responding to the call for more research into the effects of the empowerment climate on employees’ behaviors and the behavioral outcomes of employees, this research reveals that not only is the macro perspective of HPWS at the organizational level useful to promote ambidextrous activities at lower levels, but also that the unit experience of HPWS more directly affects employees’ behaviors in engaging in the search for new opportunities for new products/services and refining current products simultaneously at the unit level. The broader implication is that the effectiveness of HPWS as an antecedent for organizational ambidexterity (Gibson and Birkinshaw, 2004; Kang and Snell, 2009) depends on the unit experience of HPWS being used to influence autonomous employees to actively undertake ambidextrous activities at the unit level.

Multilevel transformational leadership and management innovation

2016 ◽  
Vol 37 (2) ◽  
pp. 265-288 ◽  
Author(s):  
Yi-Ying Chang
Keyword(s):  
Transformational Leadership ◽  
Banking Sector ◽  
Current Knowledge ◽  
Management Innovation ◽  
Firm Level ◽  
Organizational Hierarchy ◽  
Content Type ◽  
Unit Level ◽  
Empowerment Climate ◽  
The Relationship

Purpose – The purpose of this paper is to extend management innovation theory and research by going beyond analysis at a single level. Focussing on management innovation at the lower level in the organizational hierarchy, the authors develop a multilevel framework; in doing so, the authors answer earlier calls for a study of the effects of multilevel transformational leadership (TFL) on management innovation and innovation in general. Design/methodology/approach – This study collected multisource and multilevel data from 169 managers, 423 employees of 141 units from 21 banking service firms in an emerging economy. Findings – The results from hierarchial linear modeling analysis reveal that unit-level TFL was positively related to unit-level management innovation. Furthermore, firm-level TFL was positively associated with firm-level empowerment climate, which in turn enhanced unit-level management innovation. In addition, firm-level empowerment climate strengthened the relationship between unit-level TFL and unit-level management innovation. Finally, the unit-level trust mediates the relationship between firm-level empowerment climate and unit-level management innovation. Practical implications – Firms operate more effectively when they generate management innovation. To help ensure the effectiveness of management innovation, it is essential that firms, especially those from the banking sector, encourage their managers to engage in TFL behaviors. The managers must consider how to utilize their TFL behaviors to create trusting relationships in order to achieve the organizational goals. Firms can also take steps to develop a supportive climate of higher levels of autonomy, delegation, freedom and task accountability, in order to promote higher levels of trust at the lower levels of the organizational hierarchy. Originality/value – The current study develops and tests a mediation model that links firm-level TFL to unit-level management innovation, and identifies unit-level trust as the intermediate outcome. With this theorizing and the findings, the authors deepen the current knowledge regarding the organizational implications of TFL behaviors for management innovation.

A Multilevel Examination of Entrepreneurial Orientation and Corporate Entrepreneurship: the Joint Impact of Unit-Level Social Capital and Firm-Level Transformational Leadership

2019 ◽  
Vol 9 (4) ◽  
Author(s):  
Yi-Ying Chang ◽  
Yi Ping Liu ◽  
Che-Yuan Chang
Keyword(s):  
Social Capital ◽  
Transformational Leadership ◽  
Entrepreneurial Orientation ◽  
Corporate Entrepreneurship ◽  
Dark Side ◽  
Senior Managers ◽  
Firm Level ◽  
Entrepreneurship Research ◽  
Unit Level ◽  
The Relationship

Abstract We examine the relationship between unit-level entrepreneurial orientation (EO) and unit-level corporate entrepreneurship (CE), which has been typically neglected in entrepreneurship research. Building on the conservation of resource theory (COR), we argue that the relationship between unit-level EO and unit-level CE will be stronger when unit-level social capital is higher. Further, we posit that unit-level social capital becomes more effective when firm-level leaders are viewed as less (and not more) transformational by unit members. Data were collected from 186 managers, 372 employees, and 62 senior managers from 93 units of 31 firms. We find that unit-level EO is positively related to unit-level CE and this relationship strengthens when unit-level social capital is high. This moderating effect of social capital is itself moderated by firm-level transformational leadership, and strengthens as firm-level transformational leadership behaviors decrease (supporting “dark side” views of transformational leadership). Implications of our findings for organizational entrepreneurship research and practice are discussed.

Linking CEO relationship-focused leadership and corporate entrepreneurship: a multilevel moderated mediation model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yueyue Liu ◽  
Meng Xi ◽  
Feifei Li ◽  
Xiulin Geng
Keyword(s):  
Indirect Effect ◽  
Organizational Identification ◽  
Identity Theory ◽  
Environmental Uncertainty ◽  
Corporate Entrepreneurship ◽  
Structural Equations ◽  
Strategic Leadership ◽  
Firm Level ◽  
Content Type ◽  
The Relationship

Purpose Corporate entrepreneurship is an important way for organizations to gain competitive advantages and achieve sustainable development. However, few studies pay attention to the influence of CEO strategic leadership on corporate entrepreneurship. Drawing on social identity theory and uncertainty-identity theory, this study aims to investigate whether CEO relationship-focused leadership impacts corporate entrepreneurship through middle managers’ (MMs’) organizational identification and whether the indirect effect is moderated by environmental uncertainty. Design/methodology/approach Using 192 Chinese samples with 192 firm-level and 716 department-level observations, this study uses multilevel structural equations modeling by Mplus 8.0 to test the theoretical model. Findings This study finds that CEO relationship-focused leadership positively predicts MMs’ organizational identification and corporate entrepreneurship, and MMs’ organizational identification mediates the relationship between CEO relationship-focused leadership and corporate entrepreneurship. In addition, environmental uncertainty moderates not only the relationship between CEO relationship-focused leadership and MMs’ organizational identification but also the indirect effect of CEO relationship-focused leadership on corporate entrepreneurship through MMs’ organizational identification. Research limitations/implications This study enriches the understanding of process and contextualization of CEO strategic leadership influencing on corporate entrepreneurship. Originality/value To the best of the authors’ knowledge, this study is among the first to explore the influence of CEO relationship-focused leadership on corporate entrepreneurship.

Probing the impact of transformational leadership on job embeddedness: the moderating role of job characteristics

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Usman Khalid ◽  
Rabia Mushtaq ◽  
Abdul Zahid Khan ◽  
Faisal Mahmood
Keyword(s):  
Transformational Leadership ◽  
Job Characteristics ◽  
Job Embeddedness ◽  
Transformational Leaders ◽  
Content Type ◽  
Work Settings ◽  
Leadership Research ◽  
Relationship Of ◽  
The Impact

Purpose This paper aims to evaluate how transformational leadership can increase job embeddedness in their employees that persuade them to stay in their organization and how this relationship is contingent upon the job characteristics. Design/methodology/approach Sample of 328 useable responses was available for analysis. Questionnaires were distributed to the employees who are working in different Pakistani organizations. Regression analysis was used to test for hypotheses. Findings The findings support that there is a significant impact of transformational leadership for shaping job embeddedness, and the results endorsed the role of job characteristics as a moderator in describing the relationship of transformational leadership and job embeddedness. Transformational leaders would motivate employees to work together in productive manners in challenging work settings. Originality/value This paper makes three key contributions to the literature on job design. First, this inquiry shows that a strong link does exist between transformational leadership in creating organizational job embeddedness. Second, it highlights how job characteristics of highly challenging work settings may shape employees’ job embeddedness. Third, this paper offers a novel perspective in leadership research by incorporating high challenging work setting (i.e. job characteristics) as moderator. Managers may get new insight by opting for transformational leaders' attributes and concentrating on high challenging work settings for creating embeddedness in employees to prolong their stay with the job and firm.

Passive but defiant: the role of innovative capabilities in knowledge management and corporate entrepreneurship

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Azhar Khalil ◽  
Muhammad Khuram Khalil ◽  
Rashid Khalil
Keyword(s):  
Corporate Entrepreneurship ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Market Demand ◽  
Content Type ◽  
Knowledge Based ◽  
Innovative Capabilities ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to examine the role of organizational innovative capabilities (OIC) on the relationship between knowledge sharing (KS), corporate entrepreneurship (CE) and firm performance (FP). Specifically, this study uses the knowledge-based view to develop a model that examines the mentioned relationship. Design/methodology/approach Using survey data from 520 participants across 75 service sector companies in Thailand, measurement and structure models are tested through structural equation modeling to quantify the impact between constructs. Findings This study shows that KS and CE positively affect OIC and FP. A positive relationship is also found between KS and CE. The mediating impact of OIC strengthens the relationship between KS and CE on FP. Research limitations/implications Like all research using survey methods, the research is prone to respondent biases and generalizability. However, this paper has put the best effort to minimize such effects by rigorous methodological testing to avoid such biases. Practical implications The findings of this study suggest that to improve organizational learning and knowledge-based performance, commitment and understanding of the employees in the entire organization is crucial. KS significantly contributes to developing innovative abilities because of its characteristics of providing firm-specific and socially complex advantages. The way a firm transforms and exploits its knowledge may ascertain its level of innovativeness, such as coming up with certain problem-solving procedures and new product development according to the rapid change in the market demand. However, organizations may only instigate to effectively organize knowledge when their employees are ready to share knowledge. Continuous KS boosts entrepreneurial practices and contributes innovativeness across individuals, groups, units or the entire organization. Originality/value The relationship between CE, organization innovative capabilities and FP in the presence of KS is rarely discussed in both theoretical and empirical literature. This study contributes to the literature by arguing that apart from the direct impact of KS on FP, KS can lead the firms toward generating important competitive advantage by forming innovative capabilities that can significantly influence FP.

Investigating antecedents of transformational leadership in students

2019 ◽  
Vol 12 (1) ◽  
pp. 80-94 ◽  
Author(s):  
Kerri Anne Crowne
Keyword(s):  
Transformational Leadership ◽  
Leadership Skills ◽  
Hierarchical Regression ◽  
Cross Sectional ◽  
Content Type ◽  
Business Educators ◽  
The Impact ◽  
The Relationship ◽  
Us University ◽  
Practical Implications

Purpose This study investigates the relationships among cultural intelligence (CQ), personality and transformational leadership in a student population. The purpose of this paper is to examine the impact of CQ on transformational leadership to see if a relationship exists beyond personality. Design/methodology/approach Hypotheses are presented and tested on a sample of 465 undergraduate and graduate students who attended a large northeastern US university. Hierarchical regression was used to conduct the analysis, and multiple models were generated to test the relationships posited. Findings The data showed that CQ affected transformational leadership; however, when examining the subcomponents of CQ, only behavioral CQ had an impact on transformational leadership beyond personality. Research limitations/implications The surveys were self-reported and cross-sectional, so causality could not be determined. Furthermore, the sample, while diverse, was composed of students. However, scholars will find value in this research because it expands the understanding of CQ. Practical implications The findings of this research indicate that behavioral CQ impacts transformational-leadership skills. Thus, business educators should consider how to build skills associated with behavioral CQ in students because of the importance of global transformational-leadership skills in the workplace. Originality/value This research will impact the literature streams of CQ and transformational leadership because it is the first to examine the relationship between the two while controlling for personality.

New evidence of the relationship between employee satisfaction and firm economic performance

2015 ◽  
Vol 44 (6) ◽  
pp. 906-929 ◽  
Author(s):  
Santiago Melián-González ◽  
Jacques Bulchand-Gidumal ◽  
Beatriz González López-Valcárcel
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Employee Satisfaction ◽  
Performance Outcomes ◽  
Firm Level ◽  
Content Type ◽  
Worker Satisfaction ◽  
The Impact ◽  
The Relationship ◽  
Level Performance

Purpose – Employee satisfaction appears in any discussion about how employees can contribute to organizational performance. The purpose of this paper is to test the relationship between employee satisfaction and organizational performance; this later measured with three firm-level performance outcomes (return over assets, operating margin, and revenue per employee). Design/methodology/approach – At different times and from two independent sources the authors obtained firms’ data about worker attitudes and financial and productivity performance, respectively. The analyzed sample of 475 firms is the biggest among the studies that analyze performance and employee satisfaction at the firm level. The impact of employee satisfaction over firm performance was assessed. Findings – Overall satisfaction and satisfaction with senior leadership, compensation, and work/life balance, respectively impact firm performance. Research limitations/implications – The ratings come from both employees and ex-employees and the individual characteristics were unknown. Additionally as an internet-based sample there has been a lack of control over the individuals’ response process. Practical implications – Managers have evidence about the importance of their employees’ satisfaction on firm performance, and on how the facets involved on worker satisfaction impact the performance. Social implications – Employer review web sites are increasing their popularity. However, unlike the marketing field with consumers HR area has not taken advantage of this trend. The found results may contribute to highlight the importance of this kind of data. Originality/value – Hitherto there is only one empirical evidence about the positive role of worker satisfaction in objective and financial firm level performance. That was based in best-firms type data. The current study draws in a big sample independent of this kind of rankings. Additionally, the job facet satisfaction conceptualization considered demonstrates the usefulness of this way to understand the employee satisfaction.

The impact of transformational leadership on employee creativity: the role of learning orientation

2015 ◽  
Vol 9 (1) ◽  
pp. 78-98 ◽  
Author(s):  
Jeevan Jyoti ◽  
Manisha Dev
Keyword(s):  
Transformational Leadership ◽  
Equation Modeling ◽  
Learning Orientation ◽  
Transformational Leader ◽  
Employee Creativity ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

Purpose – This research aims to explore the relationship between transformational leadership and employee creativity. In addition, we intend to study the moderating role played by learning orientation in the relationship between transformational leadership and employee creativity. Design/methodology/approach – Data have been collected from employees working at the Airtel and Aircel call centers of J&K (India). A two-step approach to structural equation modeling (SEM) was applied. Confirmatory factor analysis was conducted to assess the proposed measurement model fit and construct validity. The structural model was generated to test the significance of the theoretical relationships. Findings – The results revealed that there is a positive relationship between transformational leadership and employee creativity, and it is being moderated by learning orientation. Research limitations/implications – Although this study expands our knowledge about the role of learning orientation between transformational leadership and employee creativity, the prospects for further research are still present. The cross-sectional design of study might not have been able to extract the true essence of the cause-and-effect relationship between transformational leadership and employee creativity. Practical implications – Transformational leaders promote followers’ creativity, so the management may find it valuable to invest in transformational leadership training for supervisors and team leaders, or use personality testing to screen for high-caliber candidates, who have high potential of becoming a transformational leader. The characteristics of a transformational leader, when coupled with the learning orientation of employees, yield positive results in the form of employee creativity, which managers can use to generate sustainable competitive advantages for their organizations. Originality/value – This paper is original, as it contributes to existing theory by establishing the moderating role played by learning orientation in between transformational leadership and employee creativity. The moderation has been proved via SEM with the help of latent constructs, which is seldom done.

Goodwill impairment loss and bond credit rating

2017 ◽  
Vol 25 (1) ◽  
pp. 2-20 ◽  
Author(s):  
Li Sun ◽  
Joseph H. Zhang
Keyword(s):  
Regression Analysis ◽  
Credit Rating ◽  
Credit Ratings ◽  
Negative Relationship ◽  
Least Squares Regression ◽  
Firm Level ◽  
Content Type ◽  
Goodwill Impairment ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this study is to examine the impact of goodwill impairment losses on bond credit ratings. Design/methodology/approach The authors use regression analysis to examine the relationship between goodwill impairment losses and bond credit ratings. Findings The empirical results show a negative relationship between the amount of goodwill impairment losses and bond credit ratings, suggesting that firms with goodwill impairment losses receive lower credit ratings. The authors perform various additional tests, including subsamples in good or bad market time, changes analysis, first time goodwill impairment firms vs subsequent impairment and the two-stage least squares regression analysis to address potential endogeneity issues. The main results persist. Originality/value This paper links and contributes to two streams of literature: goodwill impairment in accounting literature and bond credit ratings in finance literature. Whether a firm’s goodwill impairment losses affect the firm’s bond credit rating remains an interesting question that has not been examined previously. To the best of the authors’ knowledge, this is the first study that directly examines the relationship between goodwill impairment losses and bond ratings at the firm level.

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