Leading well pays off: mediating effects and multi-group analysis of strategic performance

2017 ◽  
Vol 55 (2) ◽  
pp. 400-412 ◽  
Author(s):  
Qinglan Chen ◽  
Tor Eriksson ◽  
Luca Giustiniano

Purpose The purpose of this paper is to reveal the mediating role of leadership style on the relationship between strategy and company performance. Design/methodology/approach The study uses empirical data gathered from top managers in a stratified sample of 476 Danish private businesses. Findings The results show the mediating effects of leadership styles on strategic performance. In particular, both supportive and directive leadership styles partially mediate the effect of the differentiation strategy, while the supportive leadership style displays a stronger mediating effect than the directive one. The multi-group analysis shows the moderating impact of the manager’s tenure, managerial level, strategy clarity, industry and business environment risk. Research limitations/implications The study is limited by its nature and the specificity of the national context in which it was conducted. In this vein, the evidence collected here can be enlarged and complemented by having access to panel data or the generalization of some results to neighboring or other developed countries. Practical implications Several implications of the findings for managerial practices are discussed. Originality/value There are very few discussions of the mediating effect of leadership style between strategy and performance. The paper fills the gap by examining the role of leadership style planning on the relationship between those two variables in Denmark.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Alblooshi ◽  
Mohammad Shamsuzzaman ◽  
Salah Haridy

PurposeThis study explores the role of leadership in organisational innovation by reviewing several publications that discuss the relationship between various leadership styles and innovation.Design/methodology/approachThe study followed a descriptive research methodology by reviewing 64 journal articles on the relationship between various leadership styles and innovation. The articles were analysed descriptively and then reviewed based on the leadership style it discusses to derive meaningful findings on the relationship between leadership and innovation.FindingsVarious leadership styles had a positive impact on organisational innovation either directly or indirectly, by influencing the organisational climate, employees' and leaders' behaviours or other organisational variables such as learning and knowledge sharing. Some leadership styles had both direct and indirect impacts on organisational innovation.Research limitations/implicationsThis study collected journal articles published in almost all major electronic databases such as Emerald, ScienceDirect, Taylor & Francis and Scopus. However, the review is limited to journal articles in which the title, abstract or author-specified keywords contain the search terms “leadership” and “innovation,” and published between 2000 and 2019. Therefore, this review may miss some relevant research insights mentioned in the literature that discussed innovation or leadership separately not combined.Originality/valueThis study contributes to the existing body of research on leadership and innovation by extensively discussing the role of various leadership styles in determining organisational innovation. The analysis reveals that prior studies had many limitations and focused on specific leadership styles only. The study goes a step further by explaining how the leadership and innovation aspects are related, and classifying various leadership styles according to their impact on organisational innovation being direct, indirect or both.


2016 ◽  
Vol 36 (11) ◽  
pp. 1601-1624 ◽  
Author(s):  
Nisha Paul Kulangara ◽  
Sherry Avery Jackson ◽  
Edmund Prater

Purpose The purpose of this paper is to investigate the interrelationship between trust, socialization, and information sharing on the buying firm’s innovation capability in the context of the buyer-supplier relationship (BSR). A nomological model is developed that examines the mediating role of relational capital (supplier trust) on the relationship between structural capital (socialization and information sharing) and innovation capability. Design/methodology/approach A survey was conducted on 357 US executives. Structural equation modeling was used to analyze the hypothesized relationships. Findings Information sharing and formal socialization activities increased the buying firm’s trust in its key supplier. However, formal socialization activities within the context of the business environment did not have a significant direct impact on buyer’s innovative capabilities; but when mediated by trust, it positively impacted innovation capabilities. Informal socialization within the context of the social environment directly impacted innovation capabilities but trust did not mediate the relationship. Information sharing impacted trust and innovation significantly and trust mediated the impact of information sharing on innovation capabilities. Originality/value This study defines the formal and informal aspects of socialization and investigates its impact on trust and buyer innovation capabilities. This is one of the few studies that highlights the mediating role of trust between firms to facilitate innovation capability.


2019 ◽  
Vol 32 (4) ◽  
pp. 409-425 ◽  
Author(s):  
Qinglan Chen ◽  
Tor Eriksson

Purpose The purpose of this paper is to empirically examine the mediating role of decentralization in the relationship between a firm’s strategy and its performance in the context of an advanced economy where the chief corporate strategy is differentiation. Design/methodology/approach The study uses data collected by an online survey targeting a stratified sample of 1,238 private firms operating in Denmark. The empirical analysis was carried out by estimating a structural equation model. Findings The key finding was that a decentralized organization (DO) can act as a mediator between a firm’s differentiation strategy and its performance. A multi-group analysis revealed that the mediating impact of decentralizing was affected by contingency factors such as firm size, strategic clarity, degrees of business environment risk and industry competition. Thus, a DO can be said to play a more important role in larger firms, in firms with less strategic clarity, and in companies with multiple plants. Research limitations/implications Although the study offers empirical evidence from a relatively large and representative sample of firms, the specificity of the context should be noted. In particular, firms in Denmark, while facing strong competition, do not compete with low costs. Clearly, studies of the mediating role of decentralization in low-cost strategy environments would be an important next step. Practical implications Several implications of the findings for organizational design and creation of beneficial conditions for strategy implementations are discussed. Originality/value The novel contribution of the study lies in the focus on decentralization as a mediator in the strategy–performance relationship. While previous research has shown that strategy is related to decentralization, and that decentralization is associated with higher performance, an empirical analysis of the relationship between the factors in the strategy-decentralization-performance path had not previously been undertaken.


2020 ◽  
Vol 5 (2) ◽  
pp. 7
Author(s):  
Ali Murad Ali Al Taher Al Raeesi ◽  
Samsuddin Norsamsinar

This study investigates the relationship between leadership style, and employees’ commitment among Dubai government servants. The main objective of this study is to determine the relationship between leadership styles and employees’ commitment at Dubai Immigration Department (DID). The study also aims to examine the mediating effects of communication in the relationship between leadership styles and employees’ commitment in DID. The target population of this study is 6000 employees working in DID. Thus, the sample size will be approximately 361. This research will use simple random sampling techniques.


Author(s):  
Marijana Simić ◽  
Marko Slavković ◽  
Vesna Stojanović Aleksić

Research Question: The paper investigates the relationships between human capital and SME performance, introducing into the analysis the mediating effect of entrepreneurial leadership in the specific context of a transitional economy. Motivation: The research of the mediating effect of entrepreneurial leadership contributes to a better understanding of the relationships between human capital and SME performance. As there is a small number of studies that have examined the role of entrepreneurial leadership in SMEs, the need for investigation is obvious. In addition, empirical evidence of the impact of human capital on SME performance is limited. Idea: Since leadership is considered to be a key determent of organisation growth, it is relevant to identify the relevance of entrepreneur’s leadership style and characteristics, as well as its role in the relationship between human capital components and success of SMEs in Serbia. Data: The study included 110 employees in Serbian small and medium-sized enterprises with up to 50 employees. A questionnaire was used to measure the employees’ attitude towards human capital, entrepreneurial leadership, and organizational performance, as well as socio-demographic variables. Tools: The data were prepared and analysed using statistical software IBM SPSS 24.0. Statistical data processing methods used in this paper are descriptive statistics, reliability analysis and regression analysis. Findings: The results of the analysis indicate that human capital has an indirect impact on organisational performance through the mediating effect of entrepreneurial leadership. Contribution: The results can be used in making future decisions, measures and standards related to human resource management in the context of transitional economies, as well as to help entrepreneurs to lead their employees effectively and ‚‚‚‚survive in today’s turbulent business environment.


2020 ◽  
Vol 39 (2) ◽  
pp. 240-252 ◽  
Author(s):  
Benjamin Mekpor ◽  
Kwasi Dartey-Baah

PurposeThe primary aim of this study was to determine whether or not leaders' emotional intelligence plays a mediating role in the relationship between leadership styles and voluntary work behaviours among employees of selected banks in Ghana. Specifically, the objective was to determine the mediating effect of leaders' emotional intelligence on the relationship between transactional and transformational leadership styles and organizational citizenship behaviours (OCB) and counterproductive workplace behaviours (CWB).Design/methodology/approachThe quantitative approach to research was adopted to collect data from 234 respondents. More so, both purposive and simple random sampling techniques were used for the selection of respondents for the study.FindingsThe findings of the study revealed that amongst the various leadership styles and OCB and CWB relationships, only the relationship between transformational leadership and OCB was mediated by leaders' emotional intelligence.Practical implicationsIt was however recommended that transformational leadership style be adopted in the quest to encourage employees to exhibit OCB and mitigate employees' involvement in CWB since such leaders are more prone to exhibiting high levels of emotional intelligence in the dealing with employees.Originality/valueFor the first time in the Ghanaian banking sector, this research explores the leaders' emotional intelligence as mediator on the nexus between leadership styles and voluntary work behaviours of employees of selected banks in Ghana.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fenika Wulani ◽  
Tarsisius Hani Handoko ◽  
Bernardinus Maria Purwanto

PurposeThis study investigates the effect of supervisor-directed organizational citizenship behavior (OCB) on leader–member exchange (LMX), the moderating role of impression management motives on this relationship, the effect of LMX on organizational and interpersonal deviance and the mediating effect of LMX on the relationship between supervisor-directed OCB and deviant behaviors.Design/methodology/approachThis study uses a survey questionnaire to collect data. Respondents were 342 nonmanagerial employees working in Surabaya Raya, Indonesia. Hypothesis testing is done using Partial least squares structural equation modeling (PLS-SEM).FindingsThe results show that supervisor-directed OCB is positively related to LMX, and LMX is negatively related to organizational deviance but not significantly related to interpersonal deviance. The study also finds that impression management motives moderate the positive relationship between supervisor-directed OCB and LMX. Furthermore, LMX mediates the relationship between supervisor-directed OCB and organizational deviance, but not interpersonal deviance.Practical implicationsThis study suggests the importance of human resource management (HRM) activities and managers being aware of subordinate OCB motives and the impact of LMX on interpersonal and organizational deviance, as well as what supervisors need to do to reduce these negative effects.Originality/valueFew studies examined the relationship between supervisor-directed OCB and workplace deviance behaviors (WDBs). This study provides a mechanism of their relationship by considering LMX as a mediator. Also, heretofore the existing studies tend to focus more on LMX as an antecedent of OCB. This study provides an understanding of OCB as an antecedent of LMX with the moderating effect of impression management motives.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaofeng Su ◽  
Weipeng Zeng ◽  
Manhua Zheng ◽  
Xiaoli Jiang ◽  
Wenhe Lin ◽  
...  

PurposeFollowing the rapid expansion of data volume, velocity and variety, techniques and technologies, big data analytics have achieved substantial development and a surge of companies make investments in big data. Academics and practitioners have been considering the mechanism through which big data analytics capabilities can transform into their improved organizational performance. This paper aims to examine how big data analytics capabilities influence organizational performance through the mediating role of dual innovations.Design/methodology/approachDrawing on the resource-based view and recent literature on big data analytics, this paper aims to examine the direct effects of big data analytics capabilities (BDAC) on organizational performance, as well as the mediating role of dual innovations on the relationship between (BDAC) and organizational performance. The study extends existing research by making a distinction of BDACs' effect on their outcomes and proposing that BDACs help organizations to generate insights that can help strengthen their dual innovations, which in turn have a positive impact on organizational performance. To test our proposed research model, this study conducts empirical analysis based on questionnaire-base survey data collected from 309 respondents working in Chinese manufacturing firms.FindingsThe results support the proposed hypotheses regarding the direct and indirect effect that BDACs have on organizational performance. Specifically, this paper finds that dual innovations positively mediate BDACs' effect on organizational performance.Originality/valueThe conclusions on the relationship between big data analytics capabilities and organizational performance in previous research are controversial due to lack of theoretical foundation and empirical testing. This study resolves the issue by provides empirical analysis, which makes the research conclusions more scientific and credible. In addition, previous literature mainly focused on BDACs' direct impact on organizational performance without making a distinction of BDAC's three dimensions. This study contributes to the literature by thoroughly introducing the notions of BDAC's three core constituents and fully analyzing their relationships with organizational performance. What's more, empirical research on the mechanism of big data analytics' influence on organizational performance is still at a rudimentary stage. The authors address this critical gap by exploring the mediation of dual innovations in the relationship through survey-based research. The research conclusions of this paper provide new perspective for understanding the impact of big data analytics capabilities on organizational performance, and enrich the theoretical research connotation of big data analysis capabilities and dual innovation behavior.


2021 ◽  
Vol 9 (4) ◽  
pp. 56-64
Author(s):  
Muhammad Rahman Khan ◽  
Hamid Khan ◽  
Sajjad Ahmad Jan ◽  
Aziz Javad ◽  
Aman Ullah Khattak

Purpose of Study: The study aimed to examine the mediating effects of employee commitment in the relationship between toxic leadership and employee performance in the context of the banking sector, KP, Pakistan. The study is expected to provide significant information to existing knowledge databases about the toxic leaders, organizational commitment, and employees’ performance. Methodology of Study: The cross-sectional design was used to conduct the study by using a 5-point Likert scale through the questionnaire to collect primary data from the high-level managers of selected commercial banks located south region of KP, Pakistan. The sample of 234 employees of both public/private sector banks was taken randomly as the sample. To compute sample, Yamane (1967) formula for selecting sample from finite population: n=population (566), level of significance, e = 0.05 & n=sample size, sample size (n) = N/1+Ne2 = 566/1+566(0.05), 2 = 234. Main Findings: The results of the study revealed that the significant and positive association among the research variables, the significant impact of the predictors on the criterion variable, and the significant partial mediating role of the employee commitment in the relationship between the toxic leadership and employees’ performance. Applications of Study: The current study focuses on examining the role of toxic leadership on employee performance with mediating effect of employee commitment within the banking sector of KP, Pakistan. This study's significance lies in the banking sector, desiring to acquire sustainable competitive advantage through increased employee performance and employee commitment. Novelty/Originality of Study: The expectation that organizational commitment can improve the relationship between toxic leadership and employee performance is missed to a certain extent in the educational context that is expected to offer a new contribution to an existing database of research.


2018 ◽  
Vol 24 (1) ◽  
pp. 214-233 ◽  
Author(s):  
Benedetta Bellò ◽  
Veronica Mattana ◽  
Michela Loi

Purpose Although the role of creativity in the entrepreneurial process has long been analysed, only recently scholars have begun addressing its influence on entrepreneurial intentions, showing that complex dynamics characterise this relationship. The purpose of this paper is to understand the surrounding mechanisms (moderation and mediation) that connect creativity to entrepreneurial intentions, with a focus on social context and entrepreneurial self-efficacy. Design/methodology/approach A structured questionnaire was administered to a sample of 507 students from 17 to 21 years old. The effect of creativity on entrepreneurial intentions and the moderating role of social context were tested with a three-step hierarchical regression, while the mediating effect of self-efficacy was tested by a multiple regression analysis based on the bootstrapping method. Findings The results reveal that: peers who encourage entrepreneurship moderate the relationship between creativity and entrepreneurial intentions by strengthening this relationship, and entrepreneurial self-efficacy mediates the relationship between creativity and entrepreneurial intentions. Research limitations/implications In light of these results, institutions should draw attention to how creative potential in students differs in order to provide new educational programmes to strengthen self-efficacy in entrepreneurial students and support encouraging social context of peers in which entrepreneurial intentions can be fostered. Originality/value The study, by responding to the suggestions of conducting research on the interface between creativity and entrepreneurship (Shane and Nicolaou, 2015), brings new empirical details regarding the mechanisms that link creativity to entrepreneurial intentions. Furthermore, it casts light on the interaction between dispositional and social variables, showing the crucial role of peers in enhancing the interaction between creativity and intentions.


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