Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Organizational culture and transformational leadership as predictors of business unit performance

Organizational culture and transformational leadership as predictors of business unit performance Purpose – The aim of the study was to examine the relationship between transformational leadership and organizational cultural orientations, as well as the joint effect of transformational leadership and organizational culture on business unit performance. Design/methodology/approach – About 300 employees of a large financial organization in Greece filled in a number of questionnaires measuring organizational culture orientations and transformational leadership. The measurement of business unit performance was obtained by the organization under study. Findings – A path analysis showed that the achievement and adaptive cultural orientations had a direct effect on performance. Moreover, transformational leadership and humanistic orientation had an indirect positive impact on performance via achievement orientation. Research limitations/implications – A research limitation is that the causal direction of the relations between the predictors and the criteria has been partially established by controlling for the effect of past performance on the perceptions of organizational culture and leadership. Practical implications – On a practical level the findings suggest that constructive and positive social relations at work need to be accompanied by goal setting and task accomplishment if high organizational performance is to be achieved. Originality/value – The originality of this study concerns the finding that organizational culture mediates the effect of transformational leadership on business unit performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Managerial Psychology Emerald Publishing

Organizational culture and transformational leadership as predictors of business unit performance

Athena Xenikou; Maria Simosi
Journal of Managerial Psychology , Volume 21 (6): 14 – Aug 1, 2006
Download PDF
14 pages

Loading next page...
 
/lp/emerald-publishing/organizational-culture-and-transformational-leadership-as-predictors-8mZYmSkHWJ
Publisher
Emerald Publishing
Copyright
Copyright © 2006 Emerald Group Publishing Limited. All rights reserved.
ISSN
0268-3946
DOI
10.1108/02683940610684409
Publisher site
See Article on Publisher Site

Abstract

Purpose – The aim of the study was to examine the relationship between transformational leadership and organizational cultural orientations, as well as the joint effect of transformational leadership and organizational culture on business unit performance. Design/methodology/approach – About 300 employees of a large financial organization in Greece filled in a number of questionnaires measuring organizational culture orientations and transformational leadership. The measurement of business unit performance was obtained by the organization under study. Findings – A path analysis showed that the achievement and adaptive cultural orientations had a direct effect on performance. Moreover, transformational leadership and humanistic orientation had an indirect positive impact on performance via achievement orientation. Research limitations/implications – A research limitation is that the causal direction of the relations between the predictors and the criteria has been partially established by controlling for the effect of past performance on the perceptions of organizational culture and leadership. Practical implications – On a practical level the findings suggest that constructive and positive social relations at work need to be accompanied by goal setting and task accomplishment if high organizational performance is to be achieved. Originality/value – The originality of this study concerns the finding that organizational culture mediates the effect of transformational leadership on business unit performance.

Journal

Journal of Managerial Psychology – Emerald Publishing

Published: Aug 1, 2006

Keywords: Organizational culture; Transformational leadership; Business performance

References

  • Firm or subgroup culture: where does fitting in matter most?
    Adkins, B.; Caldwell, D.
  • Re‐examining the components of transformational and transactional leadership using the multifactor leadership questionnaire
    Avolio, B.J.; Bass, B.M.; Jung, D.I.