Transformational leadership and organisational performance

Anastasia A. Katou

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Job Satisfaction and Organizational Behavior Employee Performance and Management Employee Performance and Leadership

Abstract

Purpose – The purpose of this paper is to investigate the serially mediating mechanisms of organisational justice, organisational trust, and employee reactions in the relationship between transformational leadership and organisational performance. Design/methodology/approach – The study is based on a national sample of 133 organisations from the public and private sectors in Greece and on data obtained from 1,250 employees at three hierarchical positions. The statistical method employed is structural equation modelling. Findings – The findings of the study suggest that responsive and supportive transformational leadership behaviour have a positive impact on organisational growth. Additionally, this impact is mediated by organisational procedural justice, organisational trust integrity and dependability, and organisational commitment. Research limitations/implications – The study does not allow for dynamic causal inferences because the data were collected using a questionnaire at a single point in time. Furthermore, the findings of the study may not generalise across borders, because the study was applied in the Greek context, which is experiencing a severe economic and financial crisis. Practical implications – The major message of the study to decision makers and practitioners is that leaders should work at fostering organisational commitment by improving perceptions of fairness and trust, consistent with the context where the organisation is activated. Originality/value – There is hardly any research that has been conducted to examine the serially mediating relationships of justice, trust, and employee reactions using multi-dimensional constructs in investigating the relationship between transformational leadership and organisational performance.

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References

1989Structural Equations with Latent Variables 1991Structural Equations with Latent Variables.2017Exchange and Power in Social Life 1987Leadership and Performance beyond Expectations 1990The measurement and antecedents of affective, continuance and normative commitment to the organization 1991A three-component conceptualization of organizational commitment 2002The Measurement of Engagement and Burnout: A Two Sample Confirmatory Factor Analytic Approach 2001Accounting for common method variance in cross-sectional research designs.

Cited by

2017LMX and employee satisfaction: mediating effect of psychological capital 2017Work Engagement: Investigating the Role of Transformational Leadership, Job Resources, and Recovery 2021Job demands-resources model, transformational leadership and organizational performance: a multilevel study 2019How to improve organisational citizenship behaviour by combining ability, motivation and opportunity 2022The Relationship Between Transformational Leadership, Improving Employee’s Performance and the Raising Efficiency of Organizations

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