scholarly journals Does Leadership Matter in Performance of Social Enterprises in South Korea?

2021 ◽  
Vol 13 (20) ◽  
pp. 11109
Author(s):  
Seokwon Chang ◽  
Mugoan Jeong

In social enterprises, which are hybrid organizations that create social and economic values, the role of leaders is important to achieve goals. However, prior research on social enterprises overlooked the importance of a leader, and some research that considered leadership was insufficient to concern the characteristics of social enterprises. This study aims to find whether there is no problem in applying the leadership emphasized in a profit-firm to a non-profit-firm such as a social enterprise, since social enterprises pursue economic and social objectives simultaneously. To do so, we examined the effects of four leadership styles (transactional leadership, transformational leadership, servant leadership, and entrepreneurship) used mainly in commercial enterprises on the performance of social enterprises. In review of prior studies, it was assumed that transactional leadership would not have a significant effect on performance, and the other three kinds of leadership were hypothesized to have a positive effect on performance. Additionally, to clarify the relationship between leadership and performance of social enterprises, leader trust and calling were considered as mediators. Using the list of Korea Social Enterprise Promotion Agency, questionnaires were distributed via e-mail to employees of 318 social enterprises located in Seoul, and 251 copies were collected and analyzed. The results of this study show that transactional leadership only affects economic performance and does not show significance with the rest of the variables as was expected. Transformational leadership had positive relationships with variables considered as performances of social enterprises, and the mediating effects of leader trust and calling were also verified. Entrepreneurship was positively related to three performances of social enterprises, but servant leadership had a positive relationship with organizational commitment. This study contributes to highlighting the need for research to find appropriate leadership styles that focus on the characteristics of social enterprises.

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.


Author(s):  
Anas Abudaqa ◽  
Mohd Faiz ◽  
Norziani Dahalan ◽  
Hasan Almujaini

Abstract: The aim of the current study is to examine the impact of leadership styles such as transformational leadership, transactional leadership and participative leadership on the team performance of one of the biggest oil & gas group of companies in UAE. The goal also includes the moderating role of perceived organizational culture on the links of transformational leadership and team performance, transactional leadership team performance, participative leadership, and team performance. The employees who have at least one immediate boss and currently working in one of the biggest oil & gas group of companies are the respondent and data were gathered by using questionnaires and it was analyzed by using Smart-PLS. The results indicated that transformational leadership, transactional leadership, and participate leadership have positive nexus with team performance. The results also indicated that perceived organizational culture has positively moderates among the nexus of transformational leadership and team performance, transactional leadership team performance, participative leadership, and team performance. The regulators of this group of companies will be the foremost users who want to formulate policies regarding the leadership style that improves team performance.


Author(s):  
Tsabitah Ramadhanti ◽  
Jugindar Singh Kartar Singh ◽  
Janitha Kularajasingham

The purpose of this study was to examine the impact of transformational and transactional leadership styles on employee performance. The mediating role of organisational culture was also examined. This quantitative study utilised a survey approach to collect primary data from 165 respondents engaged in the private sector in Jakarta, Indonesia. The data was collected during the Covid 19 pandemic. Structural equation modelling using Smart Pls was used to analyse the data. The data analysis showed that only transformational leadership behaviour had a strong and significant impact on employees’ performance. However, the impact of transactional leadership on employee performance was not significant. In addition, the organisational culture had an indirect effect on employee’s performance. The practical implications suggest that leaders should adopt transformational leadership to inspire and motivate employees. Transformational leaders must develop the inner agility to resolve problems by being open-minded, flexible and adopt best practices. This study provided new insights from the theoretical perspective, and the findings were consistent with the transformational leadership model. From an originality perspective, this study found that organisational culture mediates the relationship between leadership styles on employee performance.


Author(s):  
Abirami Muthia ◽  
Venkat R. Krishnan

Leadership styles have been found to impact followers affective and normative commitment. The purpose of this study is to analyze the mediating and moderating role of transformational leadership in the relationship between servant leadership and followers affective and normative commitment. Data were collected from 105 employees (49 male, 56 female) of various IT firms located in India. The respondents were asked to rate their supervisors servant leadership and transformational leadership, and their own affective and normative commitment. Results show that transformational leadership fully mediated the relationship between servant leadership and followers affective and normative commitment. We also found that servant leadership enhances followers affective and normative commitment only when transformational leadership is low. A practical implication of the study is that displaying characteristics of servant leadership would be a good start for any leader-follower relationship and for making it more transformational. Once the leader is seen as highly transformational, servant leadership may not enhance followers affective and normative commitment after that. This study adds to the existing literature by checking for both moderation and mediation by transformational leadership in the relationship between servant leadership and followers affective and normative commitment.


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.


2021 ◽  
Vol 3 (26) ◽  
pp. 74-85
Author(s):  
Dr. Fahad Saad Soliaman Algorabi Alharbi ◽  

This paper aims to study the relation between transformational leadership, transactional leadership and team performance. The researcher dependent on previous studies to conduct this research. The results refer to that transformational leadership has positive role on team performance however, transactional leadership has positive and negative role on team performance. Leaders have to strengthen the role of transformational leadership to improve and develop the team performance. For future, researcher recommended to conduct studies on transactional leadership and team performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nhat Tan Nguyen ◽  
Lai Wan Hooi ◽  
Mohan V. Avvari

PurposeThis paper aims to look into the role of transformational leadership and transactional leadership as predictors of employee creativity and organisational innovation. Employee creativity is examined as a potential mediator in the leadership styles–organisational innovation relationships.Design/methodology/approachA cross-sectional, quantitative design was adopted and structural equation modelling (SEM) techniques were used to analyse data collected from 369 employees working in 39 public coffee enterprises in Vietnam.FindingsTransformational leadership and transactional leadership were significant predictors of employee creativity and organisational innovation. Specifically, transformational leadership was instrumental to employee creativity and organisational innovation while transactional leadership was detrimental to these two variables. Additionally, employee creativity partially mediated the relationships between the two leadership styles and organisational innovation.Practical implicationsResults of this study benefit the management of organisations and policy makers by providing an insight of which leadership style will effectively suit public enterprises to promote employee creativity and foster organisational innovation.Originality/valueWhile there is a lack of studies investigating organisational innovation in organisational methods and that the interrelationships between leadership styles, employee creativity and organisational innovation are not fully understood, this study pioneers in examining relationships between leadership styles and organisational innovation that is being mediated by employee creativity. Figuring out that organisational innovation is more likely to be fostered by the positive influence of leadership behaviours and the improvement of employee creativity, in particular, the significant role of employee creativity represents important contributions of the current study.


2020 ◽  
Vol 16 (1) ◽  
pp. 54-65
Author(s):  
Siswanto Siswanto ◽  
Masyhuri Masyhuri ◽  
Ikhsan Maksum ◽  
Isnan Murdiansyah

This research aims to analyze the influence of transformational and transactional leadership styles mediated by job satisfaction on performance. The study used a quantitative approach to testing between variables; the sample used in this study was 60 respondents at PT. Cendana Teknika Utama resulted from the dissemination of questionnaires and interviews. The sampling technique used is  saturated sampling. Analyze data using Smart-PLS. The results showed that transformational leadership harmed job satisfaction, transactional leadership had a positive effect on job satisfaction, and job satisfaction had no positive effect on performance. The results of the variable's influence on job satisfaction mediation on transformational and transactional leadership are different. Job satisfaction does not become a mediation variable for the influence of transformational leadership on performance. Nevertheless, job satisfaction becomes a mediation variable between transactional leadership influence and performance. The limitation of this study is that the number of respondents is too few. Several respondents in several companies expected to add to improve the generalization of the study results of the next study.


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.


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