Interplay between P-O fit, transformational leadership and organizational social capital

Abstract

Purpose Using social identity theory, the authors hypothesize that transformational leadership (TL) leads to better person-organization fit (P-O fit), which in turn contributes to the emergence of organizational social capital (i.e. OSC). Furthermore, the authors suggest that the relationship between P-O fit and OSC is contingent upon the level of TL. The paper aims to discuss these issues. Design/methodology/approach Field study data were used to test the hypotheses. In total, 336 employees from eight different service sector organizations in Pakistan participated in this study. Hierarchical linear modeling was used to analyze the data. Findings In support of the hypotheses, the authors found that TL was positively related to both P-O fit and OSC. Also, P-O fit mediated the TL-OSC relationship. Finally, TL moderated the relationship between P-O fit and OSC. Research limitations/implications Cross-sectional data were collected through self-reports, which raises concerns of reporting bias. Practical implications Managers can benefit from the study by focusing on TL as a vehicle for not only achieving change, but also for creating an environment that facilitates better P-O fit and enhanced OSC. Social implications This study provided a rare opportunity to examine the proposed relationships in a developing country. This enhances our insight into the efficacy of theories that have been mainly developed and tested in developed countries. Originality/value Previous research hypothesized P-O fit as a mediator between leadership and performance, yet failed to receive support. The current study is unique by demonstrating that TL, as a relational leadership style, contributes to building an important resource (OSC) through the mediating effect of P-O fit.

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