Journal of New Approaches in Management and Marketing

Investigating the impact of transformational leadership on organizational performance in small and medium businesses in Tehran

Document Type : Original Article (Quantified)

Authors

shaghayegh vaghri 1
mohammad jalili filshor 2

1 Faculty of Management, Azad University, Firuzkoh Branch, Tehran, Iran

2 Faculty of Management, Azad University, Central Tehran, Tehran, Iran

https://doi.org/10.22034/jnamm.2024.428465.1041
Abstract
Abstract
Transformational leadership is one of the important prerequisites for achieving flexibility and innovation in organizations. Based on this, in the present study, the impact of transformational leadership on organizational performance is investigated. Cronbach's alpha coefficient was calculated to determine the validity of form and construct validity and to measure the reliability of the questionnaires. Leaders who, by creating new visions, formulating and developing insights and inspiration, cause transformation and innovation, and by motivating followers and creating commitment, responsibility and coordination in them, they use organizational factors and elements in a way that ensures the survival of the organization. and provide the reasons for their growth. The sampling method in this research is simple random sampling and the sample size was determined based on Cochran's formula of 212 people and distributed among the managers of 40 small and medium businesses in Tehran. After completion and collection, the data needed for the research was collected and used using descriptive statistics techniques and SPSS22 software and inferential statistics techniques with the help of Smart PLS3 statistical software with structural equation modeling method. The findings indicate that transformational leadership has an impact on organizational performance.

Keywords

Transformational Leadership
Organizational Performance
small and medium businesses
Organizational goals

سرمد، زهره. بازرگان، عباس (1376)."روش‌های تحقیق در علوم رفتاری". موسسه نشر آگه، تهران.

قربانعلی، مهران؛ نقوی، میرعلی (1398)، تأثیر شیوه‌های مدیریت منابع انسانی سبز بر عملکرد محیط زیستی با نقش میانجی سبک رهبری تحول آفرین سبز، پایان نامه کارشناسی ارشد دانشگاه علامه طباطبائی.

نوری، ناهید؛ رسولی، رضا (1399)، تأثیر نوآوری سبز بر عملکرد محیطی: نقش رهبری تحول آفرین سبز و مدیریت منابع انسانی سبز، پایان نامه کارشناسی ارشد دانشگاه پیام نور استان تهران.

یوزباشی, میرکمالی, کرمپور. (1390) بررسی رابطه سبک رهبری تحول آفرین با خلاقیت. فصلنامه نوآوری و ارزش آفرینی, 3(3), 21.

Appelbaum, E., Bailey, T., Berg, P. and Kalleberg, A.L., 2000. Manufacturing advantage: Why high-performance work systems pay off. Cornell University Press.

Armitage, A. and Keeble-Allen, D., 2007. Why people management basics form the foundation of high-performance working. People Management, 18, p.48.

Alexander Arthur, C. and Hardy, L., 2014. Transformational leadership: A quasi-experimental study. Leadership & Organization Development Journal, 35(1), pp.38-53.

Apoi, A. and Latip, H.B.A., 2019. The impact of transformational leadership on employee reactions towards individual work performance: A conceptual paper. International Journal of Academic Research in Business and Social Sciences, 9(8), pp.47-60

Becker, B E, Huselid, M A and Ulrich, D. (2001). The HR Score Card:Linking people, strategy, and performance, Harvard Business School Press, Boston, MA.

Becker, B.E., 1998. High performance work systems and firm performance: A synthesis of research and managerial implications. Research in personnel and human resources management, 16, pp.53-101.

Bass, B.M., 2000. The future of leadership in learning organizations. Journal of leadership studies, 7(3), pp.18-40

Bass, B.M., 1999. Two decades of research and development in transformational leadership. European journal of work and organizational psychology, 8(1), pp.9-32.

Carreiro, H. and Oliveira, T., 2019. Impact of transformational leadership on the diffusion of innovation in firms: Application to mobile cloud computing. Computers in Industry, 107, pp.104-113.

Cook, J.D., Hepworth, S.J. and Wall, T.D., 1981. The experience of work: A compendium and review of 249 measures and their use. London; New York: Academic Press.

Chen, J.C. and Silverthorne, C., 2005. Leadership effectiveness, leadership style and employee readiness. Leadership & Organization Development Journal, 26(4), pp.280-288.

Daft, R.L. (2020), “Organization Theory and Design, 13th Edition”, Cengage learning, USA.

Daft, R.L., 1978. A dual-core model of organizational innovation. Academy of management journal, 21(2), pp.193-210.

Drucker, P., 2014. Innovation and entrepreneurship. Routledge.

Elenkov, D.S., 2002. Effects of leadership on organizational performance in Russian companies. Journal of business research, 55(6), pp.467-480.

George, B., Walker, R.M. and Monster, J., 2019. Does strategic planning improve organizational performance? A meta‐analysis. Public Administration Review, 79(6), pp.810-819.

Ghasabeh, M.S., Soosay, C. and Reaiche, C., 2015. The emerging role of transformational leadership. The Journal of Developing Areas, 49(6), pp.459-467.

García‐Morales, V.J., Lloréns‐Montes, F.J. and Verdú‐Jover, A.J., 2008. The effects of transformational leadership on organizational performance through knowledge and innovation. British journal of management, 19(4), pp.299-319.

Gumusluoglu, L. and Ilsev, A., 2009. Transformational leadership, creativity, and organizational innovation. Journal of business research, 62(4), pp.461-473.

Hancott, D.E. (2005) The Relationship between Transformational Leadership and Organisational Performance in the Largest Public Companies in Canada. Doctoral Dissertation. Capella University, Minneapolis.

Hilton, S.K., Arkorful, H. and Martins, A., 2021. Democratic leadership and organizational performance: the moderating effect of contingent reward. Management Research Review.

Jung, D.D., Wu, A. and Chow, C.W., 2008. Towards understanding the direct and indirect effects of CEOs' transformational leadership on firm innovation. The leadership quarterly, 19(5), pp.582-594.

Judge, T.A. and Piccolo, R.F., 2004. Transformational and transactional leadership: a meta-analytic test of their relative validity. Journal of applied psychology, 89(5), p.755.

Jenatabadi, H.S., 2015. An overview of organizational performance index: Definitions and measurements. Available at SSRN 2599439.

Kurniawan, A.R., Martini, N.N.P. and Herlambang, T., 2020. Pengaruh kepemimpinan transformasional, kompetensi kerja dan motivasi kerja terhadap kinerja pegawai bank jatim situbondo. Jurnal Manajemen Dan Bisnis Indonesia, 6(1), pp.102-110.

Li, L., Zheng, X., Sun, S. and Diaz, I., 2020. Does subordinate moqi affect leadership empowerment?. Leadership & Organization Development Journal, 41(8), pp.1015-1034.

Nadler, D.A., 1989. Organizational architectures for the corporation of the future. Benchmark, Fall, pp.12-13.

Nadler, D.A. and Gerstein, M.S., 1992. Designing high-performance work systems: Organizing people, work, technology, and information. Nadler, DA, Gerstein, MS, Shaw, RB Organizational architecture: designs for changing organizations, pp.110-132.

Muthuveloo, R., Shanmugam, N. and Teoh, A.P., 2017. The impact of tacit knowledge management on organizational performance: Evidence from Malaysia. Asia Pacific Management Review, 22(4), pp.192-201.

Puni, A., Mohammed, I. and Asamoah, E., 2018. Transformational leadership and job satisfaction: the moderating effect of contingent reward. Leadership & Organization Development Journal.

Papa, A., Dezi, L., Gregori, G.L., Mueller, J. and Miglietta, N., 2020. Improving innovation performance through knowledge acquisition: the moderating role of employee retention and human resource management practices. Journal of Knowledge Management, 24(3), pp.589-605.

Wu, Q., Cormican, K. and Chen, G., 2020. A meta-analysis of shared leadership: Antecedents, consequences, and moderators. Journal of Leadership & Organizational Studies, 27(1), pp.49-64.

Waldman, D.A. and Yammarino, F.J., 1999. CEO charismatic leadership: Levels-of-management and levels-of-analysis effects. Academy of management review, 24(2), pp.266-285.

Wischnevsky, J.D. and Damanpour, F., 2008. Radical strategic and structural change: Occurrence, antecedents and consequences. International Journal of Technology Management, 44(1-2), pp.53-80.

Waldman, D.A., Javidan, M. and Varella, P., 2004. Charismatic leadership at the strategic level: A new application of upper echelons theory. The leadership quarterly, 15(3), pp.355-380.

سرمد، زهره. بازرگان، عباس (1376)."روش‌های تحقیق در علوم رفتاری". موسسه نشر آگه، تهران.
قربانعلی، مهران؛ نقوی، میرعلی (1398)، تأثیر شیوه‌های مدیریت منابع انسانی سبز بر عملکرد محیط زیستی با نقش میانجی سبک رهبری تحول آفرین سبز، پایان نامه کارشناسی ارشد دانشگاه علامه طباطبائی.
نوری، ناهید؛ رسولی، رضا (1399)، تأثیر نوآوری سبز بر عملکرد محیطی: نقش رهبری تحول آفرین سبز و مدیریت منابع انسانی سبز، پایان نامه کارشناسی ارشد دانشگاه پیام نور استان تهران.
یوزباشی, میرکمالی, کرمپور. (1390) بررسی رابطه سبک رهبری تحول آفرین با خلاقیت. فصلنامه نوآوری و ارزش آفرینی, 3(3), 21.
Appelbaum, E., Bailey, T., Berg, P. and Kalleberg, A.L., 2000. Manufacturing advantage: Why high-performance work systems pay off. Cornell University Press.
Armitage, A. and Keeble-Allen, D., 2007. Why people management basics form the foundation of high-performance working. People Management, 18, p.48.
Alexander Arthur, C. and Hardy, L., 2014. Transformational leadership: A quasi-experimental study. Leadership & Organization Development Journal, 35(1), pp.38-53.
Apoi, A. and Latip, H.B.A., 2019. The impact of transformational leadership on employee reactions towards individual work performance: A conceptual paper. International Journal of Academic Research in Business and Social Sciences, 9(8), pp.47-60
Becker, B E, Huselid, M A and Ulrich, D. (2001). The HR Score Card:Linking people, strategy, and performance, Harvard Business School Press, Boston, MA.
Becker, B.E., 1998. High performance work systems and firm performance: A synthesis of research and managerial implications. Research in personnel and human resources management, 16, pp.53-101.
Bass, B.M., 2000. The future of leadership in learning organizations. Journal of leadership studies, 7(3), pp.18-40
Bass, B.M., 1999. Two decades of research and development in transformational leadership. European journal of work and organizational psychology, 8(1), pp.9-32.
Carreiro, H. and Oliveira, T., 2019. Impact of transformational leadership on the diffusion of innovation in firms: Application to mobile cloud computing. Computers in Industry, 107, pp.104-113.
Cook, J.D., Hepworth, S.J. and Wall, T.D., 1981. The experience of work: A compendium and review of 249 measures and their use. London; New York: Academic Press.
Chen, J.C. and Silverthorne, C., 2005. Leadership effectiveness, leadership style and employee readiness. Leadership & Organization Development Journal, 26(4), pp.280-288.
Daft, R.L. (2020), “Organization Theory and Design, 13th Edition”, Cengage learning, USA.
Daft, R.L., 1978. A dual-core model of organizational innovation. Academy of management journal, 21(2), pp.193-210.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Elenkov, D.S., 2002. Effects of leadership on organizational performance in Russian companies. Journal of business research, 55(6), pp.467-480.
George, B., Walker, R.M. and Monster, J., 2019. Does strategic planning improve organizational performance? A meta‐analysis. Public Administration Review, 79(6), pp.810-819.
Ghasabeh, M.S., Soosay, C. and Reaiche, C., 2015. The emerging role of transformational leadership. The Journal of Developing Areas, 49(6), pp.459-467.
García‐Morales, V.J., Lloréns‐Montes, F.J. and Verdú‐Jover, A.J., 2008. The effects of transformational leadership on organizational performance through knowledge and innovation. British journal of management, 19(4), pp.299-319.
Gumusluoglu, L. and Ilsev, A., 2009. Transformational leadership, creativity, and organizational innovation. Journal of business research, 62(4), pp.461-473.
Hancott, D.E. (2005) The Relationship between Transformational Leadership and Organisational Performance in the Largest Public Companies in Canada. Doctoral Dissertation. Capella University, Minneapolis.
Hilton, S.K., Arkorful, H. and Martins, A., 2021. Democratic leadership and organizational performance: the moderating effect of contingent reward. Management Research Review.
Jung, D.D., Wu, A. and Chow, C.W., 2008. Towards understanding the direct and indirect effects of CEOs' transformational leadership on firm innovation. The leadership quarterly, 19(5), pp.582-594.
Judge, T.A. and Piccolo, R.F., 2004. Transformational and transactional leadership: a meta-analytic test of their relative validity. Journal of applied psychology, 89(5), p.755.
Jenatabadi, H.S., 2015. An overview of organizational performance index: Definitions and measurements. Available at SSRN 2599439.
Kurniawan, A.R., Martini, N.N.P. and Herlambang, T., 2020. Pengaruh kepemimpinan transformasional, kompetensi kerja dan motivasi kerja terhadap kinerja pegawai bank jatim situbondo. Jurnal Manajemen Dan Bisnis Indonesia, 6(1), pp.102-110.
Li, L., Zheng, X., Sun, S. and Diaz, I., 2020. Does subordinate moqi affect leadership empowerment?. Leadership & Organization Development Journal, 41(8), pp.1015-1034.
Nadler, D.A., 1989. Organizational architectures for the corporation of the future. Benchmark, Fall, pp.12-13.
Nadler, D.A. and Gerstein, M.S., 1992. Designing high-performance work systems: Organizing people, work, technology, and information. Nadler, DA, Gerstein, MS, Shaw, RB Organizational architecture: designs for changing organizations, pp.110-132.
Muthuveloo, R., Shanmugam, N. and Teoh, A.P., 2017. The impact of tacit knowledge management on organizational performance: Evidence from Malaysia. Asia Pacific Management Review, 22(4), pp.192-201.
Puni, A., Mohammed, I. and Asamoah, E., 2018. Transformational leadership and job satisfaction: the moderating effect of contingent reward. Leadership & Organization Development Journal.
Papa, A., Dezi, L., Gregori, G.L., Mueller, J. and Miglietta, N., 2020. Improving innovation performance through knowledge acquisition: the moderating role of employee retention and human resource management practices. Journal of Knowledge Management, 24(3), pp.589-605.
Wu, Q., Cormican, K. and Chen, G., 2020. A meta-analysis of shared leadership: Antecedents, consequences, and moderators. Journal of Leadership & Organizational Studies, 27(1), pp.49-64.
Waldman, D.A. and Yammarino, F.J., 1999. CEO charismatic leadership: Levels-of-management and levels-of-analysis effects. Academy of management review, 24(2), pp.266-285.
Wischnevsky, J.D. and Damanpour, F., 2008. Radical strategic and structural change: Occurrence, antecedents and consequences. International Journal of Technology Management, 44(1-2), pp.53-80.
Waldman, D.A., Javidan, M. and Varella, P., 2004. Charismatic leadership at the strategic level: A new application of upper echelons theory. The leadership quarterly, 15(3), pp.355-380.

  • Receive Date 03 September 2023
  • Revise Date 10 November 2023
  • Accept Date 06 January 2024

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