EFFECT OF LEADERSHIP STYLES ON FINANCIAL PERFORMANCE: MEDIATING ROLES OF EXPLOITATIVE AND EXPLORATORY INNOVATIONS CASE OF KNOWLEDGE-INTENSIVE FIRMS

2019 ◽  
Vol 23 (03) ◽  
pp. 1950020 ◽  
Author(s):  
SARRA BERRAIES ◽  
BELGACEM BCHINI

The purpose of this research is to investigate the effect of transformational and transactional leadership styles on firms’ financial performance in a context of knowledge-intensive firms and the mediating role of exploitative and exploratory innovations in this relationship. To achieve this purpose, a quantitative research was conducted on 201 top executives working in knowledge-intensive firms in the context of an emerging country, namely Tunisia. The data analysis was performed via the structural equation modelling method. As a result, the empirical study revealed that the transformational leadership style is a key determinant of exploitative and exploratory innovations and firms’ financial performance. In this perspective, the two types of innovation partially mediate the link between transformational leadership and financial performance. However, transactional leadership affects only exploitative innovation. This original study offers a better understanding of the contribution of the transformational and transactional leadership styles on exploitative and exploratory innovations and the firms’ financial performance in a context of firms’ intensive knowledge. It offers a reading grid for managers of knowledge-intensive firms to better lead and identify key elements that may boost the firms’ innovation ambidexterity and performance.

2015 ◽  
Vol 36 (1) ◽  
pp. 2-16 ◽  
Author(s):  
Ann-Louise Holten ◽  
Sten Olof Brenner

Purpose – The purpose of this paper is to identify processes which may contribute to followers’ positive reactions to change. By focusing on the relationship between change antecedents and explicit reactions, the authors investigate the direct and indirect relationships between leadership styles (transformational and transactional) and followers’ appraisal of change through manager engagement. Design/methodology/approach – Using data from a longitudinal survey among 351 followers in two Danish organizations, the study tracked the planned implementation of team organization at two different times. Data were analyzed using structural equation modelling. Findings – Transformational and transactional leadership styles were positively related to the engagement of managers. Managers’ engagement was associated with followers’ appraisal of change. The two leadership styles also had a direct, long-term effect on followers’ change appraisal; positive for transformational leadership and negative for transactional leadership. Practical implications – The results have potential implications for change management, as followers’ change appraisal may be improved by developing managers’ leadership style and engagement. Originality/value – This is the first study to provide longitudinal evidence of the direct and indirect effects of leadership styles on followers’ change appraisal.


2016 ◽  
Vol 35 (5) ◽  
pp. 681-705 ◽  
Author(s):  
Ra'ed Masa'deh ◽  
Bader Yousef Obeidat ◽  
Ali Tarhini

Purpose – Knowledge sharing adoption has been considered as a significant practice for organizations. However, there is a modest empirical confirmation to indicate how these organizations value the richness of their knowledge capabilities. The purpose of this paper is to investigate both transformational and transactional leadership styles that influence employees’ knowledge sharing practices, and the impact of the latter on job performance, and then on firm performance. Design/methodology/approach – Data collected from 179 employees at the higher council of youth in Jordan were empirically tested using structural equation modelling. Findings – The findings revealed that both transformational and transactional leadership styles have significant impact on job performance, and the latter on firm performance. Also, it was found that transactional leadership impacted knowledge sharing, whereas transformational leadership did not. Originality/value – This research proposes a new approach to understand knowledge sharing adoption, and outlines some theoretical and managerial implications of the findings.


2019 ◽  
Vol 8 (1) ◽  
pp. 48-52
Author(s):  
Asima Mushtaq ◽  
Ishtiaq Hussain Qureshi ◽  
Aakifa Javaid

The aim of this study is to investigate the influence of age and experience on the leadership styles of the managers, in the three selected banks of Kashmir division viz J&K Bank, SBI and HDFC. The study focuses on two leadership styles, namely transformational and transactional leadership styles. The study reveals that the transformational leadership style is the dominant leadership style among managers of all age and experience groups. Furthermore, the study reveals that the age and experience have no significant influence on leadership styles, although with the increase in age and experience transformational leadership style is exhibited more by the managers.


2012 ◽  
Vol 01 (07) ◽  
pp. 100-111
Author(s):  
Obiwuru Timothy C. ◽  
Okwu, Andy T. ◽  
Akpa, Victoria O. ◽  
Nwankwere, Idowu A.

This study has investigated the effects of leadership style on organizational performance in small scale enterprises. The major objective was to determine effect of leadership styles on performance in small scale enterprises. Transformational and transactional leadership styles were considered in this study. Transformational leadership behaviours and performance/outcome considered relevant in the study were charisma, inspirational motivation and intellectual stimulation/individual consideration; and effectiveness, extra effort and satisfaction, respectively. Transactional leadership bahaviours and performance/outcome variables were constructive/contingent reward and corrective/management by exception; and effort, productivity and loyalty/commitment, respectively. The study followed a survey design, and employed evaluative quantitative analysis method. Analysis was based on primary data generated through a structured Multifactor Leadership Questionnaire (MLQ) administered on respondents. Responses to research statements were scaled and converted to quantitative data via code manual developed for the study to enable segmentation of the data responses into dependent and independent variables based on leadership behaviours and associated performance variables. OLS multiple regression models were specified, estimated and evaluated. The result showed that while transactional leadership style had significant positive effect on performance, transformational leadership style had positive but insignificant effect on performance. The study concluded that transactional leadership style was more appropriate in inducing performance in small scale enterprises than transformational leadership style and, therefore, recommended transactional leadership style for the small enterprises with inbuilt strategies for transition to transformational leadership style as the enterprises developed, grew and matured.


IIUC Studies ◽  
2017 ◽  
Vol 14 (2) ◽  
pp. 9-34 ◽  
Author(s):  
Md Mahi Uddin ◽  
Mohammad Aktaruzzaman Khan ◽  
Kalsom Ali

The study investigates the influence of leadership styles, i.e. transactional and transformational on promoting organizational learning in some selected private universities in Chittagong, Bangladesh. The study used a quantitative research design. Data have been collected from three private universities of Chittagong through a survey instrument. The study analyzed in total 147 matched completed questionnaires. The findings of the study revealed that contingent reward of transactional leadership and idealized influence and individualized consideration of transformational leadership played significant and positive influence on enhancing organizational learning. Although, findings of this research did not report any significant impact of management by exception-active and management by exception-passive as constructs of transactional leadership as well as inspirational motivation and intellectual stimulation as dimensions of transformational leadership style on organizational learning. The study extends present literature in the field by relating leadership styles and organizational learning focusing on emerging economies particularly in the context of Bangladesh. IIUC Studies Vol.14(2) December 2017: 09-34


2018 ◽  
Vol 14 (3) ◽  
pp. 82-100
Author(s):  
Saad G. Yaseen ◽  
Saib Al-Janaydab ◽  
Nesrine Abed Alc

The aim of this article is to investigate the relationship between leadership styles, absorptive capacity and firm's innovation in the Jordanian Pharmaceutical sector. It is a knowledge-intensive industry and one where effective leadership has been very substantial. Findings reveal that transformational leadership style and transactional leadership style are antecedents to absorptive capacity and a firm's innovation. The results confirm a significant and direct relationship between both leadership styles and firm innovation, and indirectly through absorptive capacity. Overall, the research's findings provide valuable insights for managers to foster absorptive capacity and innovation of their firms.


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.


2019 ◽  
Vol 3 (3) ◽  
pp. 26-36
Author(s):  

In comparison with the western military setting, the absence of the study of leadership styles and personality hardiness in the Malaysian Army (MA) has been noticeable. Personality hardiness of the soldiers', and whether military transformational and transactional leadership provides a significant impact on soldier's hardiness level, is critical in a modern military environment in facing many unique challenges, due to the increase of forward deployment rate. As such, the present study examines the proposition that the military leader's leadership styles could enhance military subordinate's hardiness level, as conceptually suggested by previous research. This is employed via the use of an investigation of Experimental Vignette Methodology (EVM); pre-test and post-test collected data on soldiers' hardiness level, with the intervention of leadership paper vignettes which involved 169 participants for Experiment 1; (transformational leadership), and 143 participants for Experiment 2; (transactional leadership). Additionally, MLQ Form 6S was employed for transformational and transactional leadership, while DRS 15 was utilized to measure the hardiness level. The results from the two experiments found that transformational leadership significantly affected subordinate military hardiness, while transactional leadership had no influence on hardiness. Finally, the implications of the present findings are assumed to further facilitate further hardiness research in the Malaysian Army, with regards to subordinate’s commitment and performance.


Aquichan ◽  
2021 ◽  
Vol 21 (2) ◽  
pp. 1-15
Author(s):  
Luz Dalia Valbuena-Durán ◽  
Myriam Ruiz Rodríguez ◽  
Astrid Nathalia Páez Esteban

Objective: To assess the leadership styles of the assistance Nursing professionals and their associated sociodemographic and professional factors. Materials and methods: An analytical and cross-sectional study. The sample comprised 75 Nursing professionals and 170 Nursing assistants selected for convenience. The Multifactorial Leadership Questionnaire was applied to assess leadership and the organizational result variables. Results: The predominant leadership styles were as follows: transformational (mean of 3.43) and transactional (3.40), which presented high correlation rates with satisfaction, efficacy and additional effort. The leadership style least perceived by the staff was corrective/avoidance (2.10). In transformational leadership, behavioral influence and inspirational motivation presented better scores in the leaders’ self-perception. Age, marital status and having children evidenced statistically significant differences with the transformational and transactional leadership styles; work experience was significant with transactional leadership. Conclusions: In their work, Nursing professionals denote encouraging practices that are inherent to transformational leadership, which is related to changes in the organizational culture, leads to motivating and inspiring the subordinates to transcend the routines and increases their satisfaction and commitment to their duties, thus being an important factor in health institutions.


2019 ◽  
Vol 6 (2) ◽  
pp. 61-75
Author(s):  
Fazhil Hanafi Asnora

This study is based on the idea that transformational and transactional leadership style is very important for employees because job satisfaction is achieved with good cause employees are willing and motivated to provide a positive influence on the success of the organization that supports organizational goals effectively and efficiently. Therefore, this study aims to determine whether the transformational and transactional leadership styles simultaneously significant effect on employee performance. The theory is used to analyze the problems is about transformational leadership, transactional leadership style, employee performance. This research was conducted in the Harian Waspada Medan, especially in the civil service. Research approach is a quantitative approach to the type of associative research. The results obtained and also become keseimpulan this study include that the transformational leadership style has no significant effect on employee performance. While transactional leadership style variables have a significant effect on employee performance. Variable transformational and transactional leadership styles simultaneously significant effect on employee performance.


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