The Impact of Transformational Leadership on Entrepreneurial Orientation via the Mediating Role of Organizational Learning Capability

Author(s):  
Razan Nofal ◽  
Mais Jaradat

The current research aims to investigate the effect of transformational leadership on entrepreneurial orientation in Jordanian commercial banks, and whether organizational learning capability mediates the effect of transformational leadership on entrepreneurial orientation. Adopting a quantitative research design, data were collected by means of a questionnaire-based survey of employees in Jordanian commercial banks. Based on 330 usable responses, the results revealed the significant effect of transformational leadership and two of its dimensions (inspirational motivation and intellectual stimulation) on entrepreneurial orientation. Two other dimensions (idealized influence and individualized consideration) did not contribute to entrepreneurial orientation. Additionally, the results showed that transformational leadership has a significant effect on organizational learning capability, and that organizational learning capability in turn affects entrepreneurial orientation. The findings confirm that organizational learning capability fully mediates the effect of transformational leadership on entrepreneurial orientation. A number of recommendations are advanced, the most important of which is that banks should improve and develop managers’ transformational attributes by training them on how to deal with employees in order to increase their entrepreneurial orientation. Banks should also consider improving their learning capability, as this plays a significant role in enhancing and supporting the effect of transformational leadership attributes on entrepreneurial orientation.

2018 ◽  
Vol 12 (11) ◽  
pp. 77 ◽  
Author(s):  
Bader Obeidat ◽  
Razan Nofal ◽  
Ra’ed Masa’deh

This study aims to investigate the effect of transformational leadership on entrepreneurial orientation in Jordanian commercial banks, and whether organizational learning capability mediates the effect of transformational leadership on entrepreneurial orientation. Adopting a quantitative research design, data were collected by means of a questionnaire-based survey of employees in Jordanian commercial banks. Based on 330 usable responses, the results revealed the significant effect of transformational leadership and two of its dimensions (inspirational motivation and intellectual stimulation) on entrepreneurial orientation. Two other dimensions (idealized influence and individualized consideration) did not contribute to entrepreneurial orientation. Additionally, the results showed that transformational leadership has a significant effect on organizational learning capability, and that organizational learning capability in turn affects entrepreneurial orientation. The findings confirm that organizational learning capability fully mediates the effect of transformational leadership on entrepreneurial orientation. A number of recommendations are advanced, the most important of which is that banks should improve and develop managers’ transformational attributes by training them on how to deal with employees in order to increase their entrepreneurial orientation. Banks should also consider improving their learning capability, as this plays a significant role in enhancing and supporting the effect of transformational leadership attributes on entrepreneurial orientation.


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


2014 ◽  
Vol 1 (1) ◽  
pp. 343-346
Author(s):  
Gheorghe Militaru

AbstractThis study investigated the range of potential performance implications of transformational leadership to improve the university performance by creativity, knowledge, and innovation. We examine the relationships among innovation orientation, transformational leadership, organizational learning, and university performance using hierarchical OLS regression technique. We found that transformational leadership influences the relationship between leaders' performance (rectors, deans, and managers) and university's outcomes (teaching, research, and service) to establish how leader behaviours affect the university performance. Results reveal that transformational leadership may motivate academic staff to work harder, exerting more effort and engaged in higher levels of task performance through inspirational motivation, intellectual stimulation, idealized influence, and individualized consideration. The current study shows that transformational leadership may facilitate higher levels of creativity and innovation through emphasized the knowledge integration mechanisms into university. The moderately positive relationships of transformational leadership with university performance suggest that universities should focus on selecting and promoting individuals for upper-level managerial positions with these characteristics


2021 ◽  
Vol 4 (3) ◽  
pp. 693-701
Author(s):  
Shakeel Khan ◽  
Shahzad Khan Durrani ◽  
Bushra Hamid ◽  
Muhammad Ishtiaq

The mystery of what leaders can and ought to do in order to spark the best performance from their people is age-old. Until recently, no quantitative research has demonstrated which precise leadership behaviors yield positive results. This study takes much of the mystery out of effective leadership. The objective of this paper is to determine the level of prevalence of transformational leadership dimensions in private banks within the boundaries of KPK, Pakistan, and to evaluate whether emotional intelligence mediates between transformational leadership dimensions and Employee Engagement. Kenny’s contemporary approach to mediation was used to test the mediating effect of emotional intelligence. Our results reflect that with the exception of Idealized Influence dimension of transformational leadership remaining three dimensions inspirational motivation, intellectual stimulation, individualized consideration prevails within banking sector. Similarly, there is no direct relationship between transformational leadership dimensions and employee engagement, rather, this relationship is best explained by incorporating emotional intelligence in the model.


Webology ◽  
2021 ◽  
Vol 18 (Special Issue 04) ◽  
pp. 1389-1412
Author(s):  
Al Mokhtar Mohammad Al Shanqaiti ◽  
Dr. Mazen Mohammed Farea

Projects are essential drivers for business growth and success. The project’s aim is analyzing the effect of transformational leadership factors on succeeding the projects. The study will investigate transformational leadership factors (Idealized Influence, Inspirational Motivation, Intellectual Stimulation & Individualized Consideration) and their direct influence on project success. Examining the impact of each factor will support project leaders and project resources to influence project progress for delivering and achieving project success and eliminating potential project losses and unnecessary project failures. Data from 216 project members working in Saudi Arabia for managing and executing projects were gathered and screened before being analyzed and empirically tested using the Structural Equation Model. The findings are supported for hypotheses suggested and showed that transformational leadership as well as 3 factors (idealized influence, intellectual stimulation and individual based consideration) have a significant relationship influencing progress and ultimately impacting project success. The study concludes that inspirational motivation has insignificant effect on project success. The results are inviting project leaders to adopt transformational leadership and raise the awareness, which stimulates the employees to express their ideas, effective feedback, and concerns to create a situation for the employee to deliver best performance levels. The most significant contribution is recognizing the positive effect of at the transformational leadership on study progress and ultimately help project managers to secure the success.


2016 ◽  
Vol 6 (2) ◽  
pp. 89 ◽  
Author(s):  
Tareq Ghaleb Abu Orabi

Transformational leadership has garnered considerable attention in the literature because of its potential implications for the performance of the organization. Research indicates that this type of leadership can collectively impact employee behavior and commitment leading to improvements in the work climate and knowledge sharing. When combined these changes can positively influence the performance of the organization. Using this as a foundation for investigation the current research considers the role of transformational leadership and its four components—idealized influence, inspirational motivation, intellectual stimulation, and individual consideration—and their influence on organizational performance in three banks operating in Jordan. A total of 249 surveys were distributed with 213 retuned and 171 eligible for use. The data was analyzed using multiple regression with a significance level of p < 0.05. The results indicate that while transformational leadership and three of its components—inspirational motivation, intellectual stimulation, and individual consideration—did contribute to 81.6 percent of the variance in organizational performance; idealized influence was not a significant factor contributing to this outcome. Leaders may need to focus on these elements of transformational leadership to improve outcomes for organizational performance.


2021 ◽  
Vol 8 (10) ◽  
pp. 189-201
Author(s):  
Mst. Shumshunnahar

The aim of this research is to examine the effect of the factors of Transformational leadership on public service innovation outcomes. Survey data collected from 500 innovation officers of field level administration of Bangladesh. Results from the multiple regression analysis using SPSS indicated that there was a positive impact of Idealized Influence, Inspirational Motivation, Intellectual Stimulation and Individualized Consideration on public service innovation outcomes. The finding also implies that the policy makers should build a strong strategy to put more concentration and heighten transformational leadership to enhance public service innovation outcomes.


2016 ◽  
Vol 12 (5) ◽  
pp. 47
Author(s):  
Mohammad Hunitie

<p>This research is designed to study the impact of the components of transformational leadership style (individualized consideration, intellectual stimulation, inspirational motivation and idealized influence) on a particular style of conflict management, i.e. integrative. Jordanian public ministries comprised the population of the research. A random sample consisting of 75 frontline managers from 15 ministries was used to collected research data via a valid and reliable questionnaire. The research leads to acceptance of the hypothesis that individualized consideration, intellectual stimulation, inspirational motivation, and idealized influence are positively associated with the integrative style of conflict management. Intellectual stimulation is the dimension that has the greatest influence on the integrative style of conflict management, followed by idealized influence. Individualized consideration has the lowest influence on the integrative conflict management style. Thus, frontline managers should be informed about, trained and encouraged to adopt transformational leadership practices and to use their integrative qualities to enhance the management of organizational conflicts.</p>


2021 ◽  
Vol 14 (8) ◽  
pp. 346
Author(s):  
Thi Thu Cuc Nguyen

The brand equity of banks plays a crucial role in determining customer behavior of using their services. The study aims to examine the impact of brand equity on conversion behavior in the use of personal banking services at commercial banks in Vietnam. The paper uses quantitative research methods, through linear SEM (Structural Equation Modelling) analysis, with survey data including 554 samples of individual customers of commercial banks. The study’s findings show that the bank’s brand equity has a negative impact on the behavior of individual customers. In the relationship between these two factors, competitive advertising effectiveness and loyalty of customers act as intermediary factors. On that basis, the study makes a number of recommendations to preclude customers leaving and minimize business losses caused by the conversion of customers’ banks. The findings of this study have shown the importance and impact of brand equity on conversion behavior in the use of personal customer services. These are meaningful contributions both theoretically and practically to help banks get a deeper insight into brand equity and the need to pay attention to building and developing sustainable brand equity for the bank, as well as an important basis for further research.


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