Investigation of The Effects of Transactional and Transformational Leadership on Entrepreneurial Orientation

Abstract

The purpose of this study was to examine the possible effects of transactional and transformational leadership styles on entrepreneurial orientation. Transactional leadership discussed with two dimensional model consists of contingent reward and active management by exception, where transformational leadership discussed with four dimensional model consists of idealized influence, inspirational motivation, intellectual stimulation and individualized consideration. On the other hand entrepreneurial orientation was examined under three dimensions as; innovativeness, risk taking and proactiveness. The survey of this study is conducted on 171 employees of three multinational companies in Istanbul. The obtained data from the questionnaires are analyzed through the SPSS statistical packaged software. Analyses results showed that transactional leadership affects only proactiveness dimension while transformational leadership affects all three dimensions of entrepreneurial orientation. The only insignificance among transformational leadership and entrepreneurial orientation is between individualized consideration and risk taking.

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