CEO transformational and transactional leadership and organizational innovation

2016 ◽  
Vol 54 (7) ◽  
pp. 1542-1568 ◽  
Author(s):  
Bhaskar Prasad ◽  
Paulina Junni

Purpose – Organizational innovation is critical for firm competitive advantage. Yet, we do not know enough about the relationship between leadership and organizational innovation. The purpose of this paper is to examine the influence of chief executive officer (CEO) transformational and transactional leadership on organizational innovation. The authors examine the moderating role of environmental dynamism. Design/methodology/approach – The authors collected survey-based data from top management team members in 163 companies in services, construction, manufacturing and other industries in the USA. The authors used multiple regression analyses to test the study hypotheses. Findings – The empirical findings indicate that CEO transformational and transactional leadership behaviors positively influence organizational innovation. However, organizations benefit more from transformational leadership in dynamic environments. Originality/value – This study highlights the role of CEO leadership behavior in the pursuit of organizational innovation. Significantly, the study shows that both transformational and transactional leadership can enhance organizational innovation. However, their effectiveness is contingent on environmental dynamism. This contributes to the firm innovation literature by clarifying how specific types of CEO leadership influence organizational innovation in different environmental conditions.

2020 ◽  
Vol 48 (1) ◽  
pp. 1-10
Author(s):  
Qihua Zhang ◽  
Haihua Hu ◽  
Chengjun Wang

We applied mood-as-information theory to investigate the effect of negative mood on prohibitive and promotive employee voice, and the moderating role of transformational and transactional leadership styles in this relationship. We recruited a paired employee–supervisor sample, comprising 48 supervisors who rated their employees' promotive and prohibitive voice, and 224 employees who completed measures of negative affect and their supervisors' transformational and transactional leadership. Our results showed that negative mood enhanced prohibitive voice but reduced promotive voice. Further, transformational leadership weakened the effect of negative mood on voice, whereas transactional leadership reinforced this effect. The research results provide a solid theoretical basis for managers to manage their negative mood by changing their leadership behavior, and provide a new perspective for leaders to develop employee management strategies, and develop an objective and impartial evaluation system based on the intuitive external behaviors of employees.


2019 ◽  
Vol 27 (3) ◽  
pp. 548-565
Author(s):  
Kwasi Dartey-Baah ◽  
Seth Ayisi Addo

Purpose This study aims to examine influence of transformational and transactional leadership styles on employees’ organisational citizenship behaviours (OCBs), as well as the mediating role of job involvement in the Ghanaian hospitality industry. Design/methodology/approach Data were gathered from 258 employees in some selected hotels and restaurants in the Greater Accra Region of Ghana through a survey and analysed using covariance-based structural equation modelling. Findings The results indicated that both leadership styles influenced employees’ OCBs positively. Furthermore, job involvement positively influenced OCB and mediated between transformational leadership and OCB but not between transactional leadership and employees’ OCBs. Practical implications The study reaffirms the importance of employees’ OCBs and recommends that hotels and restaurants must encourage their supervisors to exhibit more transformational leadership behaviours (motivational, inspirational and visionary behaviours), as well as a combination of transformational and transactional leadership behaviours which can influence their employees to go beyond formal requirements, and get more involved in their jobs to the benefit of the organisations. Originality/value This study reveals the extent to which internal motivations of employees, specifically their job involvement, causes their extra-role behaviours and influences the leaders–OCB relationships from a developing country perspective.


2017 ◽  
Vol 8 (3) ◽  
pp. 324-343
Author(s):  
Jianxun Chen ◽  
Songbo liu ◽  
Yue Wang ◽  
Tao Wang ◽  
Xueqiang Zheng

Purpose Based on the team conflict theory and organizational learning theory, this study aims to discuss the two different types of conflicts of the top management team (TMT) on the different mechanisms of exploratory learning behavior of firms, and, based on the perspective of CEO-TMT (CEO – chief executive officer) interface, the different moderating effects caused by different CEO leadership styles are clarified. Design/methodology/approach Using the sample of 193 firms’ samples with multi-source data, the authors take an empirical test of the theoretical framework. Findings The effect of task conflict on exploratory learning behavior was insignificant, and relationship conflict had a positive effect on exploratory learning behavior. However, when CEO’s transformational leadership level was high, or transactional leadership level was low, there existed “bathtub curve” relationship between task conflict and exploratory learning behavior, and the relationship conflict under these conditions strengthened exploratory learning behavior. When CEO’s transactional leadership level was high, or transformational leadership level was low, there existed the inverted U-shaped relationship between task conflict and exploratory learning behavior, and the relationship conflict under such conditions weakened exploratory learning behavior. Originality/value First, the authors challenge the assumption of linear mechanism of task conflict, trying to build the mechanism of curve hypothesis, and the nonlinear explanation might be able to integrate the inconsistent results in the existing literature. Second, according to the inconsistent results of relationship conflict in existing literature, this study takes perspective of the CEO-TMT and introduces CEO leadership behavior as a moderating variable to test the moderating effect of CEO leadership and clarifies the boundary conditions of TMT conflicts.


2016 ◽  
Vol 45 (6) ◽  
pp. 1340-1366 ◽  
Author(s):  
Lars Borgmann ◽  
Jens Rowold ◽  
Kai Christian Bormann

Purpose The purpose of this paper is to test the theoretical proposition, put forward by Yukl et al. (2002), that the leadership constructs of transformational and transactional leadership, laissez-faire, consideration, and initiating structure can be arranged into three meta-categories of leadership, namely, relations, task, and change-oriented leadership. Design/methodology/approach After a comprehensive literature search, 1,402 correlations from 286 sources were obtained which referred to the above mentioned leadership constructs and outcome criteria of effective leadership. Findings It was found that three meta-categories of leadership (i.e. relations, task, and change-oriented leadership) were sufficient to explain the leadership constructs of transformational and transactional leadership, laissez-faire, consideration, and initiating structure. Moreover, it was also found that change-oriented leadership was most effective in predicting the job satisfaction of followers. In contrast, relations-oriented leadership accounted for most of the variance in both commitment and job performance. Research limitations/implications In combination, these results allow for a more comprehensive, integrative description of effective leadership behavior. Practical implications The results have implications for leadership assessment and development as well as leader selection and feedback. Originality/value Applying Occam’s razor, and in contrast to the majority of prior leadership studies, the present meta-analytical study provided evidence that three categories of leadership behaviors allow for a precise and comprehensive description of effective leadership behavior.


2017 ◽  
Vol 13 (3) ◽  
pp. 190-212 ◽  
Author(s):  
Nadeem Yousaf

Purpose Transformational and transactional leadership have become a fascinating issue for research since the work of Burns (1978) and Bass (1990). The purpose of this paper is to evaluate the usefulness of the concept of transformational leadership using examples of political leadership from South Asia. It is argued that the construct of transformational leadership is practically non-existent. And, if the concept of transformational leadership exists, it cannot be specifically applied to the leaders who gain popularity and achieve their goals. It is also argued that positive and negative connotation with transformational and transactional leadership, respectively, is false. The popular leadership may be good for “one-point agenda,” but not necessarily transform the system. Design/methodology/approach Qualitative methods, historical analysis, and discourse analysis have been employed to understand the leaders’ actions and behaviors. Findings The discussion around the empirical examples show that the popular-successful leadership does not necessarily a transformational leadership even though the leadership achieves the goals. Originality/value The popular or so-called transformational leadership may be good to achieve one-point agenda, but it may not bring the required change and fruitful results to all stakeholders if it is not backed by a transactional strategy. Future research may turn the attention in three directions: whether or not the achieved goals were transformational or transactional; evaluation of leaders’ behavior from the perspective of consequential leadership; and the role of transactional leaders in the growth and strengthening of micro and macro organizations.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ayishat Omar ◽  
Alex P. Tang ◽  
Yu Cong

Purpose The purpose of this study is to investigate how compensation committee structure or characteristic impacts say on pay (SOP) voting dissent and the impact of SOP dissent on chief executive officer (CEO) turnover. Design/methodology/approach The authors use corporate governance and SOP data to test the relationships amongst variables. Additional analysis is performed using one-to-one propensity-score matched samples. Findings The authors find that firm-years with at least a female member present on the compensation committee are associated with lower SOP dissent. The authors find mixed results of the impact of SOP dissent on CEO turnover. Practical implications This paper suggests that diversity on the compensation committee, particularly the presence of at least a female member on the committee, serves as an important determinant of SOP voting outcome in the USA. The paper provides policymakers and practitioners with insights into factors influencing SOP voting outcomes and implications of SOP dissent for firms. Originality/value The findings of this paper contribute to the corporate governance literature by enhancing the understanding of the role of the compensation committee as it relates to SOP dissent and effect of SOP dissent on CEO turnover.


2012 ◽  
Vol 33 (4) ◽  
pp. 342-368 ◽  
Author(s):  
Iain L. Densten ◽  
James C. Sarros

PurposeThe purpose of this paper is to examine empirically the effect of cultural and social acceptance on CEO leadership.Design/methodology/approachSeveral instruments were used to capture key concepts (i.e. Organisational Culture Profile, Marlowe‐Crowne Social Desirability Scale, Transformational Leadership Inventory, and Leader Reward and Punishment Questionnaire), which were examined using confirmatory factor analysis. Data were collected from 635 Australian CEOs.FindingsThe results of hierarchical multi‐regression analysis clarified the importance of self‐deception and impression management as influential context factors, and how both operate at the pinnacle of organisations. The study also identifies that transformational and transactional leadership behaviours were uniquely influenced by specific cultural dimensions, and suggests that CEOs use combinations of these behaviours to respond to four cultural dimensions (i.e. emphasis on rewards, performance orientation, innovation, and stability) in order to produce competitive advantages.Research limitations/implicationsThe study highlights how CEOs are still vulnerable to conforming to the social norms of their organisation and also how CEOs use a repertoire of leadership behaviours, in response to the importance of different cultural dimensions.Originality/valueThe paper contributes to the leadership literature by directly addressing how context impacts on CEO leadership in three specific areas: social acceptance needs, demographics and culture. Further, the study investigates CEO transformational and transactional leadership behaviours rather than global constructs, and directly addresses the common method variance issue.


2019 ◽  
Vol 22 (1) ◽  
pp. 84-104 ◽  
Author(s):  
Abdelrahman Zuraik ◽  
Louise Kelly

Purpose The purpose of this paper is to investigate the relationship among CEO transformational leadership, innovation climate and organizational innovation through exploration and exploitation. Design/methodology/approach A questionnaire, designed as a self-reported survey, was distributed to individuals working in teams in US-based corporations, with a collected sample size of 215 organizations. Findings Results show that CEO transformational leadership has a direct positive effect on organizational innovation and an indirect effect through innovation climate. CEO leadership is more impactful for exploitation, compared to innovation climate, which has more influence on exploration. Research limitations/implications This study is the first to integrate CEO transformational leadership and innovation climate with exploration and exploitation outcomes. A research limitation is that there is a higher percentage of female than male respondents and a lower of percentage of female CEOs in this study. A further limitation is self-report which can lead to common method bias. Practical implications The close connection among CEO transformational leadership, innovation climate and organizational innovation suggests that evaluating, supporting and training CEO transformational leadership becomes a vital activity for boards, investors and managers. If management wants to increase exploration, they should pay particular attention to creating a climate that is supportive of innovation. Organizations should recruit and train CEOs for transformational leadership and regularly assess climate to ensure innovation results. Originality/value The main contribution of this study is highlighting the role of innovation climate as a mediator between CEO transformational leadership and the outcome of organizational innovation which is measured by exploration and exploitation activities.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose The purpose of this study is to examine the impact of transformational and transactional leadership styles on employees’ affective commitment and OCB in NPOs and the role of work engagement as an intervening mechanism. Design/methodology/approach Data was gathered from the responses of 400 employees working in Italian NPOs to an online questionnaire survey. A quantitative analytical research design was implemented and structural equation modeling techniques were used in analyzing the data. Findings The results suggest transformational and transactional leadership have a positive effect on affective commitment and OCB and work engagement mediating role between these variables. Practical implications Therefore organizations would benefit from introducing leadership training programs which focus on the influence that leaders have on employees’ work-related outcomes. Originality/value This paper has an original approach as it adds to the leadership literature by being one of the few studies to examine the impact of transformational and transactional leadership on employees’ attitudes and behaviors in NPOs.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Frank Baafi ◽  
Abraham Ansong ◽  
Kennedy Etse Dogbey ◽  
Nicodemus Osei Owusu

PurposeThis study explores the role of transformational leadership, transactional leadership and resource supply in enhancing innovative work behaviour using the mediation model.Design/methodology/approachSurvey data was gathered from 314 local government staff from the six metropolitan assemblies in Ghana. Structural equation modelling was used for the analysis.FindingsThe results suggest that transformational and transactional leadership behaviours provided an impetus for innovative behaviours. Also, resource supply was found to mediate the relationship between transformational leadership behaviours and innovative work behaviour.Practical implicationsPublic managers can improve the innovative behaviour of public servants by providing resources for innovation, setting up proper reward structures, communicating vision clearly and clarifying performance expectations.Originality/valueThis is the first study to investigate innovative work behaviour within the Ghanaian local government sector and the context of a developing country in Africa. The study extends the literature on innovative work behaviour by exploring the role of leadership and resource supply.


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