The impact of leadership styles on organizational culture and firm effectiveness: An empirical study

Abstract

Abstract This research project seeks to contribute to the literature on management by presenting and testing a model of leadership linking leadership styles directly to culture type and indirectly to firm effectiveness. The authors selected a four-factor theory of leadership and examined how it directly impacted organizational culture, and indirectly impacted organizational effectiveness (via an organization's culture). Using surveys designed to measure attitudinal and behavioral indicators of organizational culture, leadership, and effectiveness, we collected data from 2,662 individuals in 311 organizations. The results generally support the hypotheses that organizational effectiveness is related to type of culture and that cultural norms are related to type of leadership styles. The results have implications for management and organizational development practices and processes. The results indicate that the leadership skills of managers and supervisors are critical factors in the creation and reinforcement of cultural norms. Furthermore, cultural norms seem to positively impact organizational effectiveness.

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