scholarly journals Leadership Styles and Firms’ Innovation, Mediating Role of Absorptive Capacity: Empirical Evidence from Emerging Economy

Author(s):  
Irum Mushtaq ◽  
Muhammad Salman Chughtai ◽  
Faryal Lashari

This study contends explicitly that leadership styles (transformational and transactional) are positioned as a pylon for firms’ innovation performance. Further, this study contemplates the intermediating inspiration of absorptive capacity (potential and realized) linking leadership styles (transformational and transactional) and firms’ innovation. Data was collected from 301 permanent employees working in Pakistani manufacturing firms (food and tobacco) through the self-administered questionnaires to test the proposed hypothesis of this study. The study's findings demonstrate a positive influence of leadership styles (transformational and transactional) on the firm's innovative performance. Moreover, both absorptive capacity dimensions (potential and realized) mediate the relationship between leadership styles (transformational and transactional) and innovative performance. This study demonstrates that both leadership styles (transformational and transactional)provide phenomenal path routes to augment firms’ innovation. Overall, this study contributed a legitimate illustration of leadership styles strengthening firms’ innovation, specifically transactional leadership style, encouraging results within the developing economy perspective.

2019 ◽  
Vol 7 (1) ◽  
pp. 1467-1517
Author(s):  
Teresita Belarmino

Introduction: Scholars consider leadership style as a powerful tool for improving school managers’ commitment on total quality management (TQM), yet few studies have empirically examined the linkages on organizational culture, leadership styles, and TQM in tertiary institutions. This study determined the mediating role of leadership style on organizational culture and TQM. Method: The researcher employed the descriptive correlational design to analyze the level of organizational culture, the extent of leadership style as mediating variable, the extent of TQM in education as perceived by the respondents, and the relationship between those variables among school managers. There were 295 school managers from 13 tertiary institutions in Asia who responded to the study. Result: The results of the study showed that the respondents have very high practices of organizational traits of involvement, adaptability, consistency, and mission with an indirect effect on leadership style. The extent of the respondents’ TQM is high on the following dimensions: a process-systems approach, customer-supplier focus, consistent quality leadership, continuous improvement and self-evaluation .The extent of leadership styles in both transformational and transactional as practiced by managers is high. However, the organizational culture had no direct effect on TQM. Thus, leadership style fully mediates organizational culture and TQM. Further, the school managers are committed to TQM in education regardless of age, civil status, educational attainment, and years of experience. As a contribution to the mediating mechanism, the emerging model showed that transformational and transactional being the components of leadership styles have loadings of .89 and .49, respectively. This means that the respondents’ leadership style practices have corresponding weights of 64.49% of transformational and 35.51% of transactional leadership style to fully mediate on the relationship between organizational culture and TQM. This research therefore, indicates the significance of the mediating role of leadership style on organizational culture and TQM in tertiary institutions. Discussion: The outcome of this study shall be utilized as basis for conducting seminar-workshops and training programs. The study will contribute to future research on other dimensions on OC, LS and moderating variables in relation to TQM.


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.


2020 ◽  
Vol 3 (1-2) ◽  
pp. 1-17
Author(s):  
Samundra Paudel

 Leadership and entrepreneurship, and their effects on business performance are major issues in contemporary academic research as they are linked with economic development of a nation. However, relatively only a few studies have been carried out on the relationship among these three variables with even less attention paid to entrepreneurship orientation (EO) serving as a mediator in leadership-performance relationship. This study firstly tested the relationship between leadership style and business performance and then analyzed the mediating role of EO between them in the Nepali SMEs. The study utilized 188 responses collected from business owners in Pokhara, Nepal. Findings suggest that transformational and transactional leadership style as well as EO exert significant positive influence over business performance. The study indicates that transformational leadership is stronger predictor of EO and business performance than transactional leadership style. It also found that EO mediates transformational leadership-performance relationship. The implications, limitations, and suggestions have been identified and discussed.


Author(s):  
Ilzar Daud ◽  
Nur Afifah

Objective - The objective of this study is to examine the relationship between transformational leadership styles and job performance and the mediating role of organizational commitment in the relationship between transformational leadership style and job performance in State-Owned Banks in West Kalimantan, Indonesia. Methodology/Technique - The data used to evaluate the model was gathered from the State-Owned Banks in West Kalimantan, Indonesia. 200 permanent employees of those State-Owned Banks participated in the survey. The Structural Equation Modelling (SEM), using LISREL software was employed to examine the relationship among the constructs in this study, which are transformational leadership style, organizational commitment, and job performance. Finding - The findings of this study conclude that transformational leadership style significantly affects job performance and organizational commitment, whereas organizational commitment significantly influences job performance. Briefly, organizational commitment mediates the relationship between transformational leadership styles and job performance in State-Owned Banks in West Kalimantan, Indonesia. Novelty - Most of the previous studies were carried out in western countries, raising doubts about generalizations in research results in developing countries such as Indonesia. Therefore, the novelty of this research is carried out in the context of developing countries, especially in State-Owned Banks in West Kalimantan, Indonesia. Type of Paper - Empirical. Keywords: Transformational Leadership Style; Organizational Commitment; Job Performance. JEL Classification: L22, M12, M19.


Author(s):  
Muhammad Abbas ◽  
Asif Ali ◽  
Muhammad Ahsan Khalid

The paper investigates the critical role of organisational commitment between leadership style and employees’ performance. Generally, the relationship between leadership style and the organisational performance has been discussed widely but ignoring the employees’ performance. It has been accepted that the organisational commitment leads to higher employee performance but the existing literature has not focused much on this view. A conceptual model has been developed which links the constructs together.The model reveals the missing link of organisational commitment between leadership style and employees’ performance. The sample of 242 was collected from the managers and employees of manufacturing and service organisations. The finding confirmed that organisational commitment acted as a mediator between the leadership style and employees’ performance.  


2021 ◽  
Vol 124 ◽  
pp. 08010
Author(s):  
Rabiah Eladwiah Abdul Rahim ◽  
Nor’ashikin Ali ◽  
Juraifa Jais

This study aims to investigate the factors influencing research community participation and open innovation through the mediating role of absorptive capacity from the lens of Resource Based View and Dynamic Capability perspectives. Based on a survey of 115 senior engineering faculties from three research universities in Malaysia, this study applies the Structural Equation Modelling (SEM) to investigate the research model. The findings demonstrate that top management support has a major impact on research community participation. The findings also suggest that absorptive capacity mediates the association between research community participation and open innovation capability. This study provides a theoretical basis on the resources and capability that are pertinent for open innovation. From a practical perspective, the relationships among research community participation, absorptive capacity, and open innovation suggest how universities can promote research community participation and assess their absorptive capacity to achieve open innovation.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The results show that trust and operational cohesion have a mediating role between leadership style and virtual team efficiency. Media richness is shown to moderate the relationship between leadership styles and trust. Transformational style has an important impact on operational cohesion when media richness is high while transactional leadership has a positive significant impact when it is low. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2020 ◽  
pp. 146735842097215
Author(s):  
Abu Elnasr E Sobaih ◽  
Ahmed M Hasanein ◽  
Meqbel M Aliedan ◽  
Hassan S Abdallah

This study examines the impact of both transformational leadership (TFL) and transactional leadership (TCL) on employee intention to stay (ITS) in deluxe hotels. It also examines the mediating role of organisational commitment (OC) in the relationship between leadership styles, i.e. TFL and TCL, and ITS. A pre-tested questionnaire survey was self-administered to front-line employees in deluxe hotels in Egypt, where these leadership styles were prominent. The key findings showed that TFL has more positive impact on OC and ITS than TCL. Affective commitment (AC) and normative commitment (NC) were found to partially mediate the relationship between both leadership styles and ITS. Employees exhibit higher ITS when they perceive proper leadership practices, especially TFL. Hotel executives should place more emphasis and investments on TFL to effectively achieve OC and positively influence ITS which is critical for the hotel industry that often suffers from high employee turnover.


2019 ◽  
Vol 21 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Syed Saad Ahmed ◽  
Jia Guozhu ◽  
Shujaat Mubarik ◽  
Mumtaz Khan ◽  
Essa Khan

Purpose The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance. Design/methodology/approach Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items. Findings The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence. Originality/value This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.


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