scholarly journals Effect of Transformational Leadership on Organizational Performance of Micro Finance Institutions in Kenya

Author(s):  
Lydia Muriuki ◽  
Kennedy B. Mwengei Ombaba

Transformational leadership has attracted extensive attention in management research. The influence of transformational leadership on organizational performance is an important aspect. Given the background where greater attention is being paid to transformational leadership in the banking industry, this research aimed to establish the degree of the influence of transformational leadership on organizational performance of micro finance institutions in Kenya. Questionnaires were used for data collection. They were analyzed via structural equation modeling. The findings reveal that organizational performance is positively influenced by transformational leadership (β= 1.505; p < 0.05). These findings remind managers of the need to pay close attention to transformational leadership, to cultivate organizational performance, and thereby to eventually improve employee’s sustainable performance.

2020 ◽  
Vol 2 (1) ◽  
pp. 71
Author(s):  
Antonius Stephen ◽  
Mei Ie

This study examines transformational leadership variables and motivation for the success of SME businesses in Bekasi. Transformational leadership is the ability of a leader in working with others to transform. Motivation is an encouragement or reason that becomes the basis of one's enthusiasm for doing something to achieve certain goals. Business success is a situation where the business experiences an increase from the previous results. This study aims to empirically examine the effect of transformational leadership and motivation on business success. The sample in this study were 50 respondents from various types of businesses in Bekasi. Data collection is done by distributing questionnaires, using non-probability sampling methods. The data analysis method used is the Structural Equation Modeling (SEM) method with Smart PLS 3. The results showed that transformational leadership has a positive effect on business success, and motivation also has a positive effect on business success. Penelitian ini meneliti variabel kepemimpinan transformasional dan motivasi terhadap keberhasilan usaha UKM di Bekasi. Kepemimpinan transformasional adalah kemampuan seseorang pemimpin dalam bekerja dengan melalui orang lain untuk mentransformasikan. Motivasi adalah suatu dorongan atau alasan yang menjadi dasar semangat seseorang untuk melakukan sesuatu untuk mencapai tujuan tertentu. Keberhasilan usaha adalah suatu keadaan dimana usaha mengalami peningkatan dari hasil yang sebelumnya. Penelitian ini bertujuan untuk menguji secara empiris pengaruh kepemimpinan transformasional dan motivasi terhadap keberhasilan usaha. Sampel pada penelitian ini adalah 50 responden dari berbagai jenis usaha di Bekasi. Pengumpulan data dilakukan dengan melakukan penyebaran kuesioner, dengan menggunakan metode nonprobability sampling. Metode analisis data yang digunakan adalah metode Structural Equation Modeling (SEM) dengan Smart PLS 3. Hasil penelitian menunjukkan bahwa kepemimpinan transformasional berpengaruh positif dengan keberhasilan usaha, serta motivasi juga berpengaruh positif terhadap keberhasilan usaha.


SAGE Open ◽  
2020 ◽  
Vol 10 (2) ◽  
pp. 215824402092742 ◽  
Author(s):  
Than Thanh Son ◽  
Le Ba Phong ◽  
Bùi Thị Thu Loan

The purpose of this study is to explore the effects of transformational leadership and knowledge-sharing processes on operational and financial performance in Chinese firms. The article applied structural equation modeling to inspect the influence of transformational leadership on knowledge sharing and their effects on organizational performance, based on the data collected from 263 respondents in 112 manufacturing and service companies in China. The findings show that knowledge collecting and knowledge donating mediate the correlation between transformational leadership and two specific aspects of organizational performance. In addition, transformational leadership has a greater influence on financial performance, whereas knowledge sharing is more significantly associated with operational performance. This article highlights the significance of practicing transformational leadership to stimulate individuals’ knowledge-sharing behaviors, which are important prerequisites for improving organizational performance. The article provides clearer understanding for scholars and practitioners about the new and effective pathway to promote firm’s operational and financial performance.


2019 ◽  
Vol 2 (1) ◽  
pp. 11
Author(s):  
SRI INDRA TRI GUNARSO

The purpose of this research to knows and analyzes the influence of work competency and transformational leadership toward work satisfaction and its implication on worker performance of study program in Politeknik Kesehatan Tanjungkarang, Lampung Province. Population in this research is 297 people or all worker, whereas the sample is a number of 260 workers suitable with SEM requirement. The tool of data collection uses questioner instrument whereas the tool of data analyzing uses statistics, i.e. structural equation modeling (SEM). Based on SEM analyzing by using Lisrel 8.70, it is known that work competency variable and transformational leadership give influence toward work satisfaction of study program in Politeknik Kesehatan Tanjungkarang environment. The result describes that is very determined by work satisfaction which improve and work satisfaction is influenced by transformational leadership which applies on Study program in Politeknik Kesehatan Tanjungkarang environment.


Author(s):  
Arthur Ong Buenavista ◽  

This study investigated the relationships among managerial leadership, transformational leadership, and performance of school administrators of Northern Iloilo Polytechnic State College (NIPSC) through Structural Equation Modeling (SEM). Covariance-Based SEM (CB-SEM), Confirmatory Factor Analysis (CFA) with its default Maximum Likelihood Estimation (MLE) were used to test the hypothesized model that managerial leadership covary transformational leadership which were both related to the school administrators’ performance. Results revealed that of the eight alternative models, two equivalent models, one model generates every probability distribution that can be generated by another model, Model B3 and Model D3 were generated, got the smallest Alkaike Information Criterion (AIC) and Bayes Information Criterion (BIC) indicating that both models had relatively better fit. Model B3 and Model D3 have the same degrees of freedom but feature a different configuration of paths among the same variables. However, of the two equivalent models, model B3 was rejected due to discriminant validity concerns while model D3 passed both measurement model and structural model, model D3 was confirmed and retained. As contribution to the fields of education, management and leadership, the researcher confirmed and recommends, through CB-SEM using CFA with its default MLE, the Managerial Leadership and Performance as fully mediated by Transformational Leadership Model.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Srinivasan P.

Purpose The purpose of this paper is to analyze the impact of knowledge management (KM) in terms of organizational performance using structural equation modeling. To enhance organizational performance, KM is used as a powerful strategic tool. The factors such as management commitment, leadership and organizational culture are the KM enabler’s conditions, and the step processes of KM are knowledge capture, creation, organizing/storing and transfer, and through this, KM is analyzed on organizational performance in the context of leathers manufacturing company. This study constructs with questionnaire consist of 34 variables. Design/methodology/approach There are about 101 samples that were collected through the questionnaire survey method in the leather companies in Ranipet. The data were collected from executives and associates in the leather companies. Data were analyzed using the SPSS tool and SMART PLS tool used for framing a research model and the hypothesized relationships were tested through partial least squares structural equation modeling technique. Findings The finding of this study is mandatory to implement a structured KM practice in the leather companies. Application of KM is quite an impact on organizational performance, which leads to profitability and productivity. Originality/value This is the first paper to empirically investigate the KM enablers, process and support for the role of KM practices at leather industry. Further, the positioning of KM practices as a strategic competitive tool can be considered as an influential factor to organizational performance.


2014 ◽  
Vol 11 (1) ◽  
pp. 47-81 ◽  
Author(s):  
Nebojsa S. Davcik

Purpose – The research practice in management research is dominantly based on structural equation modeling (SEM), but almost exclusively, and often misguidedly, on covariance-based SEM. The purpose of this paper is to question the current research myopia in management research, because the paper adumbrates theoretical foundations and guidance for the two SEM streams: covariance-based and variance-based SEM; and improves the conceptual knowledge by comparing the most important procedures and elements in the SEM study, using different theoretical criteria. Design/methodology/approach – The study thoroughly analyzes, reviews and presents two streams using common methodological background. The conceptual framework discusses the two streams by analysis of theory, measurement model specification, sample and goodness-of-fit. Findings – The paper identifies and discusses the use and misuse of covariance-based and variance-based SEM utilizing common topics such as: first, theory (theory background, relation to theory and research orientation); second, measurement model specification (type of latent construct, type of study, reliability measures, etc.); third, sample (sample size and data distribution assumption); and fourth, goodness-of-fit (measurement of the model fit and residual co/variance). Originality/value – The paper questions the usefulness of Cronbach's α research paradigm and discusses alternatives that are well established in social science, but not well known in the management research community. The author presents short research illustration in which analyzes the four recently published papers using common methodological background. The paper concludes with discussion of some open questions in management research practice that remain under-investigated and unutilized.


2021 ◽  
Vol 7 (2) ◽  
pp. 225
Author(s):  
Bestadrian Prawiro Theng ◽  
Elyzabeth Wijaya ◽  
Juliana Juliana ◽  
Eddy Eddy ◽  
Ali Syah Putra

The purpose of this study is to analyze the relationship between Transformational Leadership, Servant Leadership, Digital Transformation on Organizational Performance and Work Innovation Capabilities. In this study using quantitative methods and data analysis techniques Structural Equation Modeling (SEM) using SmartPLS 3.0 software. This research was conducted in the population in this study were all SMEs in Tangerang City as many as 41,155 SMEs and based on the method of determining the number of samples according to Morgan, the sample units were 380 SMEs. Based on the results of data analysis transformational leadership has a significant effect on Organizational Performance, transformational leadership has no significant effect on Work Innovation Capabilities, servant leadership has a significant effect on Organizational Performance, servant leadership has no significant effect on work innovation capabilities, digital transformation has no significant effect on organizational performance, digital Transformation has no significant effect on Work Innovation Capabilities, organizational performance has no significant effect on work innovation capabilities, transformational Leadership has no significant effect on Organizational Performance through Work Innovation Capabilities, Servant Leadership has no significant effect on Organizational Performance through Work Innovation Capabilities, digital transformation has no significant effect significant to the Organizational Performance through Work Innovation Capabilities.


Author(s):  
Mochammad Arif Budiman ◽  
Nurhidayati Dahlan ◽  
Priyougie Priyougie

Majority of the Muslim countries around the globe have been still experiencing a low level of development in various aspects of life compared to non-Muslim countries. Indonesia as the most populous Muslim country is not an exception. As far as Islam is concerned, this fact shows an irony for this religion strongly propels its adherents to pursue an excellent life (hayatan thayybah) both in worldly life and hereafter. Moreover in Islam, religion and development are very closely related each other where the level of development is dependent upon the implementation of religion in the society. The existence of Islam in a particular society should ideally lead such a society to be developed. This paper attempts to investigate the connection between Islam and development in South Kalimantan province, Indonesia. The province is selected for the study as it has long tradition of Islam, but it is reported to have a low level development. The objective of this study is to reveal the actual role of Islam on the society and to examine its connection to socioeconomic development using Maqasid al-Shari’ah framework. The survey method was employed for the data collection and Structural Equation Modeling used for the analysis. The findings showed that religiosity was positively related to various aspects of socioeconomic development as measured by the components of Maqasid al-Shari’ah.


2019 ◽  
Vol 8 (3) ◽  
pp. 7200-7208

The purpose of this study is to reveal employee competencies and compensation received by employees, as well as their implications for employee performance. This study was analyzed descriptively and verificatively through a survey method of 329 marketing managers in retail companies in Indonesia. The technique of data collection is done by indirect communication, through instruments in the form of questionnaires. Data were analyzed by weighted means score (WMS) and Structural Equation Modeling (SEM). The results showed that employee competency was good, but not optimal, indicated by the indicator of the employee's need for the company and the employee's priority scale in the work was still weak. Furthermore, the compensation strategy is relatively good, indicated by indicators of salary/wages, incentives and cooperative facilities that are still weak. On the other hand, competencies and compensation strategies partially and simultaneously have positive and significant impact for employee performance which requires serious handling.


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