scholarly journals The relationship between leadership styles, innovation and organisational performance: A systematic review

2015 ◽  
Vol 18 (3) ◽  
pp. 325-337 ◽  
Author(s):  
Tebogo Gilbert Sethibe ◽  
Renier Steyn

This paper is an attempt to consolidate the published scientific knowledge about the impact of leadership styles on the relationship between innovation and organisational performance. Concepts, statements and conceptual frameworks were used as structure to analyse the body of scientific knowledge. After consulting 31 major research databases using the systematic literature review methodology, only seven journals articles that examined the link between leadership, innovation and organisational performance were identified. The synthesis of the journal articles revealed (a) that consensus exists among researchers as far as the relevant concepts are concerned; (b) that most agree on the definition of leadership and innovation but that a uniform understanding of what constitutes organisational performance is lacking; and (c) that conceptual models are too simplistic and do not consider mediator variables or multiple financial criteria measures. The findings further reveal that innovation is significantly and positively related to superior organisational performance, and that, although transformational leadership style is significantly and positively related to innovation, transactional leadership style is more appropriate when the aim is to instil a culture of innovation. Transformational leadership style, by contrast, is mostly associated with organisational performance. In addition, the findings further reveal that none of the studies investigate the mediating effect of the nature of innovation (incremental and radical) on the relationship between leadership and organisational performance, and that none of the studies use the objective measures of financial performance such as ROA, ROE, price/earnings (P/E) and Tobin’s Q calculated from annual financial reports. 

2019 ◽  
Vol 9 (2) ◽  
pp. 116 ◽  
Author(s):  
Thaneswary Raveendran ◽  
Aruna Shantha Gamage

The purpose of this study is to examine the mediating effects of organizational commitment on the relationship between transformational leadership style and employees’ job performance in the Divisional Secretariats in Jaffna District. 287 employees were selected for this study. Leadership styles were measured using MLQ Rater Form 5-x, employee performance was measured using job performance Scale and organizational commitment was measured using Organizational Commitment Questionnaire. Exploratory factor analysis was performed to get factor structure and confirmatory factor analysis performed to confirm the validly and reliability of the study instruments. The results revealed that transformational leadership has a positive impact on job performance and on organizational commitment. It was also found that organizational commitment doesn’t have a mediating effect in the impact of transformational leadership on employee performance. The findings also revealed that organizational commitment doesn’t have impact on employee performance. This study recommends that the leaders should pay more attention in their leadership style as a way to improve employee performance. This study further suggests that future researchers should cover larger samples and the other public sector organizations to better understand the relationship between the variables. 


2019 ◽  
Vol 11 (6) ◽  
pp. 25 ◽  
Author(s):  
Saleh Alzahrani ◽  
Abd Alhadi Hasan

BACKGROUND: The nursing shortage is a common problem in Saudi Arabia with multi-factorial causes. In addition to the low supply of Saudi graduate nurses from training facilities, job satisfaction remains a significant determinant of nurse turnover and intention to leave that contribute to the shortage of nursing workforce. The higher number of expatriate nurses who have a short stay compared to Saudi nurses compounds this problem. Therefore, effective strategies for making the nursing profession attractive and increasing nurse retention in Saudi Arabia are required. OBJECTIVE: The general objective was to examine the impact of transformational leadership style on job satisfaction amongst nurses in hospital settings. Specifically, the appraisal examined how transformational leadership style improves nursing job satisfaction in hospital settings, determined the mediating factors of the relationship between transformational leadership style and nurses’ job satisfaction, and investigated nurses’ perceptions of transformational leadership style compared with other leadership styles. METHODOLOGY: This study was used systematic review design with eight selected quantitative nursing research published between 2012 and 2017. A systematic search of the recent literature was conducted on PubMed, Scopus, Wiley Online, and Web of Science databases using search terms developed a priori to identify the articles that met the inclusion criteria. The quality of the included studies was evaluated by McMaster Critical Review Form for Quantitative Studies. Extracted data were summarised, explored and correlated using narrative synthesis. FINDINGS: Eight studies of cross-sectional design were appraised. Transformational leadership style was positively related to nurses’ job satisfaction. Transactional leadership also had a positive correlation while passive-avoidant or laissez-faire style had a negative relationship. Transformational leadership improved nursing job satisfaction through its dimensions (idealised influence, inspirational motivation, intellectual stimulation and individualised consideration). Nurse empowerment and workplace support mediated the relationship between transformational leadership and nurse job satisfaction. Nurses had a higher perception of transformational style compared to other leadership styles, and job satisfaction was found to improve nurse and patient outcomes. CONCLUSION: Transformational leadership appears to improve job satisfaction of nurses working in a hospital setting that leads to higher nursing retention. Hospital administrators and managers should practice transformational leadership to improve job satisfaction of staff nurses for better nursing outcomes, and leadership skills should be incorporated in the nursing education curriculum. However, further evaluation of transformational leadership in relation to its influencing factors is required.


2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Helen Elena Jekelle ◽  

Scholarly works have shown that one of the outstanding factors of organizational commitment has been leadership, which relates to the style adopted by the leader and the impact it has on the commitment level of employees for performance. The aim of this research was to explore the effect of leadership styles on organizational commitment. Transformational, transactional, and laissez faire styles of leadership were examined. A cross-sectional survey of 151 employees at a public sector agency in Abuja, Nigeria, was conducted. The research employed a quantitative approach to the collection of data using questionnaire administration. All questionnaire items were assessed using the five-point Likert scale. Inferential statistics in research was carried out using multiple regression technique to substantiate the survey findings. Based on the Great man theory, Contingency theory and Behavioural theory, the study confirms that transformational, transactional and laissez faire leadership styles and organizational commitment were statistically associated. In terms of contribution to the model, the explanatory variables jointly contributed 68.2 percent in explaining organizational commitment. On individual contribution, transformational leadership style contributed the most, 58.6 percent to the model while transactional leadership style contributed 11.8 percent to the model and finally laissez-faire leadership style contributed 11.2 percent to organizational commitment in the study context. The study therefore recommends that AEA should use continuous transformational leadership style practices to sustain high employee commitment and organizational effectiveness. Also, AEA should apply a bit of both transactional and laissez faire leadership styles from time to time depending on the situation of things at the workplace as there is no particular leadership style that is one-size fit all but depends on situation at hand. One realistic implication that could be learned from this study is that in order to minimize employee turnover, managers need to implement affirmative strategies that will benefit the establishment.


2021 ◽  
Author(s):  
Helen Elena Jekelle

Scholarly works have shown that one of the outstanding factors of organizational commitment has been leadership, which relates to the style adopted by the leader and the impact it has on the commitment level of employees for performance. The aim of this research was to explore the effect of leadership styles on organizational commitment. Transformational, transactional, and laissez faire styles of leadership were examined. A cross-sectional survey of 151 employees at a public sector agency in Abuja, Nigeria, was conducted. The research employed a quantitative approach to the collection of data using questionnaire administration. All questionnaire items were assessed using the five-point Likert scale. Inferential statistics in research was carried out using multiple regression technique to substantiate the survey findings. Based on the Great man theory, Contingency theory and Behavioural theory, the study confirms that transformational, transactional and laissez faire leadership styles and organizational commitment were statistically associated. In terms of contribution to the model, the explanatory variables jointly contributed 68.2 percent in explaining organizational commitment. On individual contribution, transformational leadership style contributed the most, 58.6 percent to the model while transactional leadership style contributed 11.8 percent to the model and finally laissez-faire leadership style contributed 11.2 percent to organizational commitment in the study context. The study therefore recommends that AEA should use continuous transformational leadership style practices to sustain high employee commitment and organizational effectiveness. Also, AEA should apply a bit of both transactional and laissez faire leadership styles from time to time depending on the situation of things at the workplace as there is no particular leadership style that is one-size fit all but depends on situation at hand. One realistic implication that could be learned from this study is that in order to minimize employee turnover, managers need to implement affirmative strategies that will benefit the establishment.


2015 ◽  
Vol 12 (1) ◽  
pp. 138
Author(s):  
Lee Kim Lian

<p>This paper seeks to explore the mediating construct of supervisory satisfaction on the relationship between leadership styles and organisational citizenship behaviour in companies across Malaysia. While there have been past research that investigated the relationship between leadership styles and citizenship behaviour, until now, there is very little research investigating the mediating effects of supervisory satisfaction on such relationship especially in the Malaysian context. Data was collected from 280 respondents that represent major industries such as services, manufacturing, mining and construction. SmartPLS was used to test the proposed framework. The results show that the transformational leadership style has significant positive relationship with subordinates’ organisational citizenship behaviour. This result found that supervisory satisfaction mediates the relationship between transformational leadership and citizenship behaviour. The conclusion of the research emphasizes the effects of the research for future research and practice.</p>


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.


Author(s):  
Tebogo Sethibe ◽  
Renier Steyn

This study investigated the mediating effect of organizational climate on the relationship between transformational and transactional leadership styles on innovative behaviour. 1 1 15th International Entrepreneurship Forum (15th IEF) Conference Conference Theme The Globalisation and Internationalisation of SMEs AND New Ventures: Travels with Eclectic Charlie, Digital Mary, Networked Nadia and Impactful Shona. Venice, Italy 14–16 December 2016. The effect of each component of transformational and transactional leadership styles on innovative behaviour was also investigated. A sample of 3,180 respondents from 52 South African companies participated in this research. Four main hypotheses and six sub-hypotheses were tested using multiple regression analysis. The results revealed that indeed organizational climate mediates the relationship between transformational and transactional leadership styles on innovative behaviour as well as their components. The study substantiated the expected positive relationship between transformational leadership style and innovative behaviour. Furthermore, the results showed that among the components of transformational leadership styles, inspirational motivation and intellectual stimulation influence innovative behaviour positively. This study showed that in an environment conducive to innovation, the transactional leadership style has no influence in enhancing employees’ innovative behaviour. This study provided new insight into the nature of the relationship between leadership styles, organizational climates and innovative behaviour.


2016 ◽  
Vol 6 (8) ◽  
pp. 61
Author(s):  
Emmanuel Yaw Ampofo

<!--[if gte mso 9]><xml> <o:OfficeDocumentSettings> <o:RelyOnVML/> <o:AllowPNG/> </o:OfficeDocumentSettings> </xml><![endif]--><p>This study examines the mediating effect of motivational factors of pay and promotion on transformational leadership and organizational commitment relationship in Unilever Ghana using a quantitative, non-experimental, cross-sectional and analytical survey design study. The results of the study revealed significant positive relationship between transformational leadership style and affective commitment, continuance commitment, and normative commitment. However, the results of the study revealed no significant mediation of pay in the relationship between transformational leadership style and affective commitment, continuance commitment, and normative commitment. Additionally, no significant mediation of promotion was found in the relationship between transformational leadership and affective commitment, transformational leadership and continuance commitment, and transformational leadership and normative commitment. Managers’ adoption of transformational leadership behavior as a key strategy to get employees committed to the organizations will be of great significance because motivational factors such as pay and promotion do not mediate the transformational leadership and organizational commitment relationship. This is a maiden empirical research in Ghana where motivational factors are used as mediators in transformational leadership and organizational commitment relationship.</p>


2021 ◽  
Vol 12 (1) ◽  
pp. 297
Author(s):  
Raed Hussam Alzoubi ◽  
Amar Hisham Jaaffar

Crisis management is vital for hotels to survive in the present competitive business climate in Jordan. Previous research into leadership and crisis management produced inconclusive results. Therefore, the influence of a leader’s experience on the relationship between leadership styles and crisis management needed to be further investigated and analyzed. A quantitative study involving a self-administered questionnaire was carried out using respondents in management roles at 3 to 5-star hotels operating in Jordan. The Smart-PLS 3.0 was used to analyze the survey data. Results show that transformational and transactional leadership has a positive and significant relationship with crisis management practice. Furthermore, a leader’s experience plays an important role in improving the relationship between a transformational leadership style and crisis management. However, the results show that although, leadership style is important, a leader’s experience can be of even greater value if they possess a transformational leadership style. From the perspective of contingency theory, when managing a crisis, the style of leadership is contingent on situational factors and a leader with experience may have an extra advantage in influencing his/her subordinates to practice crisis management.


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