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Creating strategic fit

Creating strategic fit PurposeWhile research and adoption of servant leadership are on the increase, little is known about the mechanisms through which it affects organizational performance. Drawing on the contingency theory, the purpose of this paper is to examine the extent to which organizational strategy and structure affect the relationship between servant leadership and organizational performance.Design/methodology/approachSurvey data were collected from 336 direct reports of CEOs/GM/MDs in Australian SMEs, and multiple regression analysis was used in the hypotheses testing.FindingsThe study found that the relationship between servant leadership and performance is moderated by the three-way interaction effects of differentiation and centralization as well as cost leadership and formalization.Practical implicationsThis study shows that the positive effects of servant leadership on performance are more pronounced in organizations with minimal organizational structure that are not fixated on cost minimization. To that end, ensuring that there is a fit among organizational strategy, structure, and leadership is a key priority for senior executives.Originality/valueThis research is one of the first to examine the boundary conditions of servant leadership, demonstrating the effects organizational structure has on servant leadership’s influence. Further, this research extends the contingency theory by focusing on strategy and structure, rather than just structural impacts. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Personnel Review Emerald Publishing

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0048-3486
DOI
10.1108/PR-03-2016-0064
Publisher site
See Article on Publisher Site

Abstract

PurposeWhile research and adoption of servant leadership are on the increase, little is known about the mechanisms through which it affects organizational performance. Drawing on the contingency theory, the purpose of this paper is to examine the extent to which organizational strategy and structure affect the relationship between servant leadership and organizational performance.Design/methodology/approachSurvey data were collected from 336 direct reports of CEOs/GM/MDs in Australian SMEs, and multiple regression analysis was used in the hypotheses testing.FindingsThe study found that the relationship between servant leadership and performance is moderated by the three-way interaction effects of differentiation and centralization as well as cost leadership and formalization.Practical implicationsThis study shows that the positive effects of servant leadership on performance are more pronounced in organizations with minimal organizational structure that are not fixated on cost minimization. To that end, ensuring that there is a fit among organizational strategy, structure, and leadership is a key priority for senior executives.Originality/valueThis research is one of the first to examine the boundary conditions of servant leadership, demonstrating the effects organizational structure has on servant leadership’s influence. Further, this research extends the contingency theory by focusing on strategy and structure, rather than just structural impacts.

Journal

Personnel ReviewEmerald Publishing

Published: Feb 5, 2018

References