Dimensions of transformational leadership and organizational performance: The mediating effect of job satisfaction

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sam Kris Hilton ◽  
Wonder Madilo ◽  
Fred Awaah ◽  
Helen Arkorful
Keyword(s):  
Job Satisfaction ◽  
Corporate Governance ◽  
Transformational Leadership ◽  
Organizational Performance ◽  
Commercial Banks ◽  
Focal Point ◽  
Mediating Effect ◽  
Research Approach ◽  
Cross Sectional Survey ◽  
Content Type

Purpose Poor corporate governance was reported to significantly contribute to the 2017/2018 financial crisis in Ghana. As leadership is a vital concept in the corporate governance system, this study aims to examine the effect of transformational leadership on organizational performance and hypothesizes that job satisfaction mediates such a relationship. Design/methodology/approach This study adopted a quantitative research approach where a cross-sectional survey design was used to collect the data from 300 purposively sampled employees of five selected commercial banks. The data was analysed using PROCESS version 3.4.1. Findings The results show that individualized consideration is the dominant transformational leadership dimension being practiced by supervisors and managers in the selected commercial banks. Again, the four dimensions of transformational leadership have a positive effect on organizational performance, and such effect is significantly mediated by job satisfaction. Practical implications The findings suggest that the dimensions of transformational leadership should be continuously improved alongside strategically motivating employees to increase their satisfaction level to enhance organizational performance. Originality/value This study provides evidence that bank managers need to be cognizant that job satisfaction is vital in the industry and must be a focal point of corporate governance practices. The mere initiating of transformational leadership behaviours without a clear link to employee satisfaction may result in employee disengagement, consequently affecting the banks’ performance and survival.

Do front-line employees in the Chinese commercial banks have the rights to experience psychological well-being?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shi Hu
Keyword(s):  
Job Satisfaction ◽  
Transformational Leadership ◽  
Organizational Performance ◽  
Commercial Banks ◽  
Well Being ◽  
Job Autonomy ◽  
Front Line ◽  
Cross Sectional ◽  
Psychological Well Being ◽  
Content Type

Purpose By drawing on leader–member exchange theory, this study aims to understand the relationship between job autonomy, transformational leadership and psychological well-being mediated by job satisfaction among front-line employees in Chinese commercial banks. Design/methodology/approach A cross-sectional study which consists of 96 respondents from 5 Chinese commercial banks is conducted. Findings Through data analysis, the results reveal that transformational leadership and job autonomy are significantly positively related to job satisfaction and directly related to the psychological well-being of front-line employees in Chinese commercial banks. Another interesting finding is that there is a mean difference between male and female front-line employees in Chinese commercial banks on the preference of job autonomy and transformational leadership. Originality/value The current study offers further evidence for which strategies Chinese commercial banks should adopt to enhance and protect the rights of front-line employees’ psychological well-being. As front-line employees in commercial banks play a vital role in contributing to bank profits and operational efficiency. They are not only the employees for making profits but also have the right to experience the psychological well-being as a human. Employees with a high level of job satisfaction and psychological well-being benefit both their own health and organizational performance in the long run.

Green marketing and perceived SME profitability: the meditating effect of green purchase behaviour

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Albert Martins
Keyword(s):  
Negative Impact ◽  
Emerging Market ◽  
Mediating Effect ◽  
Green Marketing ◽  
Purchase Behavior ◽  
Research Approach ◽  
Sustainable Competitive Advantage ◽  
Cross Sectional Survey ◽  
Content Type ◽  
The Impact

PurposeThe concept of green marketing has emerged as a panacea for reducing the negative impact of business activities on the environment. Many studies have investigated the impact of green marketing on green purchase behavior, sustainable competitive advantage, etc., without much being explored about how green marketing translates into firms' profitability, particularly among small and medium enterprises (SMEs) in emerging markets. This study, therefore, investigates the influence of green marketing on perceived SME profitability alongside the mediating effect of green purchase behaviour.Design/methodology/approachA quantitative research approach was adopted, where a cross-sectional survey design was employed to collect the data from 400 SME owners/managers in Ghana. Using Statistical Package for Social Science, the data were analysed through descriptive statistics, correlation and macro Process version 3.4.1.FindingsThe results reveal that the dimensions (environmental knowledge, environmental concern, green price, green advertising and green product) of green marketing distinctively have significant positive effect on perceived SME profitability as well as green purchase behaviour. Furthermore, green purchase behaviour significantly mediates the relationship between green marketing dimensions and perceived SME profitability such that the indirect effects are far greater than the direct effects.Practical implicationsSME managers should include the green marketing dimensions in their business plans and develop strategies to implement them in order to enhance green purchase behaviour of their products and services which will, in turn, lead to profitability.Originality/valueIn augmenting green marketing literature, this study provides an insight into how SMEs can leverage on the distinct dimensions of green marketing to influence green purchase behaviour and profitability in an emerging market context.

The role of transformational leadership in reinforcing product and service innovation: Job satisfaction as a mediator

2019 ◽  
Vol 27 (5) ◽  
pp. 4-6
Keyword(s):  
Job Satisfaction ◽  
Transformational Leadership ◽  
Leadership Style ◽  
Leadership Behaviors ◽  
Service Innovation ◽  
Mediating Effect ◽  
Content Type ◽  
Product Service ◽  
Transformational Leadership Style ◽  
Workplace Cultures

Purpose This purpose of this study is to examine the role played by transformational leadership in reinforcing product service and innovation and the mediating effect of job satisfaction. Design/methodology/approach Data was gathered from the responses of 486 employees working in three telecom companies providing mobile phones and internet services in Jordan to a questionnaire survey and from semi-structured in depth interviews with 15 team leaders. Findings The results suggest that all four aspects of transformational leadership behaviors are positively and directly associated with product and service innovation. In addition, transformational leadership behaviors have a positive and direct effect on job satisfaction. Finally job satisfaction does act as mediator between transformational leadership and innovation. Practical implications Therefore for organizations to improve performance and encourage innovative behaviors middle management and employees should be trained to use a transformational leadership style and measures to improve job satisfaction should be put in place. Originality/value This paper adds to the understanding of how leaders can develop innovation through developing appropriate workplace cultures and conditions. 10; 10.

Democratic leadership and organizational performance: the moderating effect of contingent reward

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sam Kris Hilton ◽  
Helen Arkorful ◽  
Albert Martins
Keyword(s):  
Organizational Performance ◽  
Moderating Effect ◽  
Telecommunication Industry ◽  
Research Approach ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Contingent Reward ◽  
Democratic Leadership ◽  
The Relationship

Purpose The purpose of this study is to investigate the moderating effect of contingent reward on the relationship between democratic leadership and organizational performance. Design/methodology/approach Explanatory and cross-sectional survey designs were used. A quantitative research approach was also adopted to collect the data from 476 employees in the telecommunication industry. Using statistics package for social science, the data was analyzed via descriptive statistics, correlation and hierarchical regression techniques. Findings The results reveal that both democratic leadership and contingent reward have a significant positive relationship with organizational performance. Furthermore, contingent reward significantly augments and moderates the relationship between democratic leadership and organizational performance. Thus, the combination of democratic leadership and contingent reward would more likely produce higher organizational performance. Originality/value This study has made a significant contribution to leadership and organizational literature by establishing the effectiveness of contingent reward as a moderator on the relationship between democratic leadership and organizational performance in a telecommunication industry.

Lecturers' commitment to teaching entrepreneurship: do transformational leadership, mindfulness and readiness for change matter?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sock Beei Yeap ◽  
Abdul Ghani Kanesan Abdullah ◽  
Lei Mee Thien
Keyword(s):  
Transformational Leadership ◽  
Structural Equation ◽  
Readiness For Change ◽  
Mediating Effect ◽  
Survey Method ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

PurposeThis study aims to examine the influence of transformational leadership and mindfulness on lecturers' commitment to teaching entrepreneurship with mediating effect of readiness for change in polytechnics.Design/methodology/approachThe study used the cross-sectional survey method. The sample participants were 171 lecturers from polytechnics. Data were analysed by using partial least squares–structural equation modelling (PLS-SEM) approach.FindingsFindings indicated that readiness for change mediated the relationship between transformational leadership and commitment to teaching entrepreneurship. Transformational leadership and mindfulness had no significant influence on commitment to teaching entrepreneurship. Readiness for change did not mediate the relationship between mindfulness and commitment to teaching entrepreneurship.Practical implicationsHigher education should be aware of the importance of lecturers' readiness for change. This is because readiness for change is the mediator of the relationship between transformational leadership and commitment to teaching entrepreneurship.Originality/valueThe study sheds light on the explanation of mediating effect of readiness for change to influence the relationship between transformational leadership and lecturers' commitment to teaching entrepreneurship in the Malaysian polytechnic context.

Relationship of budget participation conflict and job performance of South Korean managers

2015 ◽  
Vol 22 (4) ◽  
pp. 608-629
Author(s):  
Maria A. Leach-López ◽  
William W. Stammerjohan ◽  
Eunsuh Lee ◽  
Claire Allison Stammerjohan
Keyword(s):  
Job Satisfaction ◽  
Job Performance ◽  
Negative Impact ◽  
Mediating Effect ◽  
Future Research ◽  
Marginal Effect ◽  
Job Tenure ◽  
Cross Sectional Survey ◽  
Content Type ◽  
South Korean

Purpose – The purpose of this paper is to examine the effect of budget participation conflict (BPC) on job performance and the mediating effect of job satisfaction and job tenure on this relationship in a South Korean setting. BPC is defined as the difference between a manager’s actual budget participation and the same manager’s preferred level of budget participation. Design/methodology/approach – Survey data, analyzed using path analysis, were used to measure the direct effect of BPC on performance, and the indirect effects between BPC and performance running through job satisfaction and job tenure. Findings – Findings suggest that BPC does not directly impact job performance. Overall, this study suggests that BPC has a negative impact on job satisfaction and that job satisfaction in turn can significantly influence job performance. The authors also find some marginal effect of job satisfaction on job tenure, implying that increasing satisfaction can marginally increase job tenure. Research limitations/implications – Limitations of this study are those usually found in cross-sectional survey research. Originality/value – Despite its limitations, this study has both academic and practical implications. The study adds to the job performance literature in an Asian country which has not been widely researched. The study also finds that managers’ job performance and job satisfaction can be improved by minimizing BPC. Future research should study other variables that influence job performance of South Korean managers.

Transformational leadership and job satisfaction: the moderating effect of contingent reward

2018 ◽  
Vol 39 (4) ◽  
pp. 522-537 ◽  
Author(s):  
Albert Puni ◽  
Ibrahim Mohammed ◽  
Emmanuel Asamoah
Keyword(s):  
Job Satisfaction ◽  
Transformational Leadership ◽  
Banking Sector ◽  
Moderating Effect ◽  
Cross Sectional Survey ◽  
Design Data ◽  
Cross Sectional ◽  
Content Type ◽  
Contingent Reward ◽  
Employee Job Satisfaction

Purpose The purpose of this paper is to investigate the mechanisms that link transformational leadership to employee job satisfaction by examining the moderating effect of contingent reward on the relationships. Design/methodology/approach The study employed explanatory and cross-sectional survey design. Data were obtained from 315 bank employees and analyzed using correlational and multiple regression techniques. Findings The results revealed that there are positive relationships between the dimensions of transformational leadership and job satisfaction which are augmented by contingent reward. However, the relationships of idealized influence and intellectual simulation to job satisfaction are moderated by contingent reward, implying that, in the banking sector, the positive influence of these transformational leadership traits on employee job satisfaction can be enhanced by contingent reward. Originality/value The paper makes an important contribution to the existing organizational literature by establishing the utility of contingent reward as a moderator on the relationship between transformational leadership and employee job satisfaction in a banking sector.

Do Work Characteristics Mediate the Negative Effect of Transformational Leadership on Impaired Well-Being?

2017 ◽  
Vol 61 (4) ◽  
pp. 167-180 ◽  
Author(s):  
Sylvie Vincent-Höper ◽  
Sabine Gregersen ◽  
Albert Nienhaus
Keyword(s):  
Transformational Leadership ◽  
Focal Point ◽  
Leadership Behavior ◽  
Workplace Health Promotion ◽  
Well Being ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Related Factor ◽  
Work Characteristics ◽  
Role Clarity

Abstract: In recent years, transformational leadership as a health-related factor has become a focal point of interest in research and practice. However, the pathways and mechanisms underlying this association are not yet well understood. In order to gain knowledge on how or why transformational leadership and employee well-being are associated, we investigated the mediating effect of the work characteristics role clarity and predictability. The study was carried out on 618 employees working in the health-care sector in Germany. We tested the mediator effect using structural equation modeling. The results indicate that role clarity and predictability fully mediate the relation between transformational leadership and negative indicators of well-being. These results give credit to the notion that work characteristics play an important role in identifying health-relevant aspects of leadership behavior. Our findings advance the understanding of how to enhance employee well-being and have implications for the design of leadership-related interventions of workplace health promotion.

Examining the relationship between the psychological contract and organisational commitment

2015 ◽  
Vol 23 (1) ◽  
pp. 102-122 ◽  
Author(s):  
Fauzia Jabeen ◽  
Mohamed Behery ◽  
Hossam Abu Elanain
Keyword(s):  
Transformational Leadership ◽  
Longitudinal Study ◽  
Transactional Leadership ◽  
United Arab Emirates ◽  
Psychological Contract ◽  
The Body ◽  
Mediating Effect ◽  
Organisational Commitment ◽  
Content Type ◽  
The Impact

Purpose – The aim of this study is to examine the impact of the psychological contract, relational psychological contract and transactional psychological contract on organisational commitment as mediated by transactional leadership in the United Arab Emirates (UAE) context. The paper also explores the contractual status to determine if the theory remains valid, regardless of the fact whether one is employed as a contingent or permanent worker. Design/methodology/approach – This research made a longitudinal study spanning a 24-week time period. Data were collected using a self-administered structured questionnaire prepared in English and Arabic, at three stages representing three visits to the participating companies in the UAE. Pearson’s correlation analysis and multiple regression analysis were used to examine the research hypotheses. Findings – The results show that the psychological contracts (transactional and relational) are positively related to transactional leadership. This study categorizes several consequential relationships between transactional leadership and organisational commitment. It also advocates that transactional leadership has only a fractional mediating role in relation to relational psychological contract, transactional psychological contract and organisational commitment. Practical implications – The findings suggest that practitioners and academics alike should note that the nature of the psychological contract employed will impact upon commitment and retention. Originality/value – This study makes a significant contribution to the body of literature, being the second part of a longitudinal study that aimed at testing the mediating effect of transactional leadership on organisational commitment within the context of the UAE. In the earlier study, the intent was to analyse the role of transformational leadership as a mediator between the psychological contract and organisational commitment. Typically, transformational leadership has been found to partially mediate the above mentioned relationships. In addition, it also advocates that there may be some value in considering the employees’ contractual status with regard to the psychological contract and its impact on organisational commitment.

A turnaround fuelled by transformational leadership

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mayuree Sengupta
Keyword(s):  
Decision Making ◽  
Transformational Leadership ◽  
Organizational Performance ◽  
Secondary Data ◽  
Management Style ◽  
Early Years ◽  
Annual Reports ◽  
Work Experiences ◽  
Content Type ◽  
The Rich

PurposeThe purpose of this paper is to understand how Chairman and Managing Director (CMD) of the National Research Development Corporation, India, Hanumanthu Purushotham had facilitated a turnaround of the organization and ensured profitability during his tenure there. This is one of the series of interview-based studies that focuses on a South Asian CEO, with the goal of ascertaining his leadership and management style in a volatile situation. This brief paper expounds how leader traits and transformational leadership can positively impact an organizational turnaround and fuel growth.Design/methodology/approachThis paper uses primary interviews and complements the findings with secondary data sources such as annual reports and management literature on leadership trait, transformational leadership and organizational turnaround.FindingsThe study found that socioeconomic factors have a bearing on leadership attributes. In this instance, the CMD's early years, diverse work experiences, bright traits and transformational leadership positively impacted organizational performance. Therefore, not only the qualifications but also the qualities of a leader are pivotal in shaping success of an organization.Originality/valueThe narrative provides an instance of how decision-making driven by strategic leadership can change firm performance. The rich experiences of the India-educated CMD, a government job holder all-through, provides a veteran's view to decision-making in a state-controlled firm and helps us understand how an organization can be transformed in a limited time and with scarce resources.

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