The Development of Entrepreneurial Leadership: The Role of Human,Social and Institutional Capital

This paper contributes to the literature on entrepreneurial leadership development. Leadership studies are characterized by an increasing emphasis given to an individual leader's social and organizational domain. Within the context of human capital and social capital theory, the paper reflects on the emergence of a social capital theory of leadership development. Using a retrospective, interpretivist research method, the authors present the experience of a cohort of business leaders on an executive development programme to uncover the everydayness of leadership development in practice. Specifically, they explore how entrepreneurial leadership develops as a social process and what the role of social capital is in this. The findings suggest that the enhancement of leaders’ human capital only occurred through their development of social capital. There is not, as extant literature suggests, a clear separation between leader development and leadership development. Further, the analysis implies that the social capital theory of leadership is limited in the context of the entrepreneurial small firm, and the authors propose that it should be expanded to incorporate institutional capital, that is, the formal structures and organizations which enhance the role of social capital and go beyond enriching the human capital stock of individual leaders.     

Patterns of leader characteristics: Implications for performance and development

Current theories of leadership suggest that certain types of individuals are especially likely to succeed as leaders in certain organizations. The intent in the present article was to first identify types or subgroups of individuals entering the U.S. Army based on ability, personality, and motivational characteristics, and subsequently identify which types tend to be found in upper level positions. A Ward and Hook cluster analysis revealed seven types in a sample of junior Army officers. Three of these types are also particularly prominent among upper level Army leadership positions. The seven types displayed some differences in skills and patterns of career development. Based on these findings, it was concluded that organizations should recognize the need for different types of people to fill different types of organizational leadership roles.     

Do “protean” employees make better leaders? The answer is in the eye of the beholder

While the protean career (Hall, 1976, 2002) has been lauded for its advantages in helping individuals adapt to changing career contexts, it is not clear how this career orientation may impact how others perceive a person's leadership ability. In this study, we hypothesized that those with a protean career orientation would receive higher leadership ratings from subordinates and superiors, but lower leadership ratings from peers, in part based upon social comparison theory. Using structural equation modeling, our hypotheses regarding subordinates and peers were supported, but not with respect to superiors, who, along with peers, rated those with a protean career orientation lower in terms of transformational leadership as measured by the MLQ. We discuss potential reasons for these findings and the consequences for research and theory. Also, we examine the implications of this research for leadership development, workforce recruitment and retention, and possible generational significance.     

From solidarity to division: An analysis of Lech Wałęsa's transition to constituted leadership

This essay analyzes the capacity and constraints of authority in the contexts of constituted vs. non-constituted leadership. Using the experience of Lech Wa??sa's transition from the leader of the Solidarity social movement to the president of Poland as a case study, this article evaluates the portability of leadership skills and informal authority to the changing operational context of constituted leadership. It argues that the constraints of formal authority are significantly higher than those imposed on non-constituted leaders. As a result, while constituted leaders may have greater resources available to broadcast power, the allocation of these resources entails higher expectation for their custodians. This analysis concludes that a successful transition from non-constituted to constituted leadership is possible only when the leader manages to build new bases of informal authority. Wa??sa failed to expand his informal authority and was unsuccessful at transferring his leadership skills to the presidency.     

From imagination to application: Making the case for the general method of theory-building research in applied disciplines

The author examines what factors determine leadership success in UK social enterprises. Despite the attention prompted by the UK government's ‘Big Society’ policies, this remains a relatively unexplored field in the leadership literature. Based on in-depth interviews with successful social enterprise chief executives, carried out between April and December 2010, this article challenges the dominance of competency models, based on purely behaviourist tradition. It examines the impact of personality, values, circumstance and career arc on the way these leaders perform in an attempt to take a fresh look at the interaction of traits, behaviours and situational flexibility in determining successful leadership in this type of organization. A number of key factors are identified and categorized as dimensions of ‘being’, ‘doing’ and ‘style’. Consistent contra-indicators are also identified, providing the basis for an approach to both leadership selection and development in this growing sector of the economy.     

How leader role identity influences the process of leader emergence: A social network analysis

Contemporary theories on leadership development emphasize the importance of having a leader identity in building leadership skills and functioning effectively as leaders. We build on this approach by unpacking the role leader identity plays in the leader emergence process. Taking the perspective that leadership is a dynamic social process between group members, we propose a social network-based process model whereby leader role identity predicts network centrality (i.e., betweenness and indegree), which then contributes to leader emergence. We test our model using a sample of 88 cadets participating in a leadership development training course. In support of our model, cadets who possess a stronger leader role identity at the beginning of the course were more likely to emerge as leaders. However this relationship was only mediated by one form of network centrality, indegree centrality, reflecting one's ability to build relationships within one's group. Implications for research and practice are discussed.     

Development of leadership skills: Experience and timing

To develop organizational leaders we need to understand how requisite skills are acquired over the course of people's careers. In this article, a cross-sectional design was used to assess differences in leadership skills across six grade levels of officers in the U.S. Army. Increased levels of knowledge, problem-solving skills, systems skills, and social skills were found at higher grade levels. Certain skills and experiences, however, were found to be particularly important at certain phases of leaders' careers. These findings are used to propose an organization-based model of skill development. Implications of this model for leader development programs are discussed.     

Assessment of leader problem-solving capabilities

We describe the development of and initial psychometric evidence for a set of five constructed response measures designed to assess complex problem-solving skills and knowledge expected to influence leadership. Structured (cued) and unstructured (uncued) problem solving scenarios intended to assess process skills associated with creative problem solving are presented first. Solution construction tasks developed to assess attention to constraints and characteristics in the broader problem context are presented next. Finally, social judgment tasks intended to assess understanding of people and social systems and a task sort to assess knowledge of leadership roles are presented. Preliminary evidence for the reliability and construct validity of these constructed response measures supports their efficacy in assessing skills that underlie effective organizational leadership.     

The best leaders

Today's movements away from authoritarian leadership emphasizes team development. People are experiencing with a leadership that empowers, rather than a leadership that is, itself, powerful. But how do you become a leader who empowers others? What are the characteristics of "best leaders"? From listening skills to getting feedback and including people in the process of change, effective leaders help others move towards the goal, ultimately thinking, "We did this ourselves."     

Viva la evolution: Using dual-strategies theory to explain leadership in modern organizations

Research from multiple fields suggests that throughout human history, leaders ascended the hierarchy through one of two strategies—dominance (using force or coercion to gain control) or prestige (demonstrating competence and generosity so others follow of their own volition). The dual-strategies theory of social rank suggests that these two strategies are still inherent in human psychology, and that consideration of dominance and prestige can help explain hierarchy and leadership in modern social groups. Thus far, research on dual-strategies theory has developed without significant cross-fertilization from the literature on leadership within organizational settings. In this review, I provide the first examination of dual-strategies theory within the context of broader leadership research, highlighting a) the unique contributions of dual-strategies theory, b) current workforce trends that make dual-strategies theory particularly applicable to modern organizations, and c) key limitations of dual-strategies theory that could be addressed by integrating leadership theory.     

Leader cognition: Approaches and findings

Although few scholars would dispute the point leaders must think, cognition has not, perhaps, received the attention it warrants in studies of leadership. The intent of the present special issue is to examine how cognition influences leader emergence and performance. In this introductory piece we argue that cognitive skills, often domain specific cognitive skills, strongly influence leader emergence and performance. The conditions that moderate the impact of these skills are also examined along with the ways in which cognitive capacities shape subsequent leader behavior. The implications of cognition for leader development and directions for future research are discussed.     

Turnaround leadership core tensions during the company turnaround process

How leaders turn around declining performance is a significant issue for companies, their employees, their customers, their shareholders and, more generally, society. Leadership influence during times of change is well recognised in the literature; however, leadership during a turnaround is more complex and less understood. In-depth examinations of the role and activities of turnaround leaders have received insufficient attention in the literature to date. Specifically, studies have not investigated, in-depth, the tensions that leaders face during a turnaround process. To begin addressing this gap in the literature, we utilise case studies of four companies to examine the core tensions leaders experience, when they occur during the turnaround process and how they are managed. We frame our focus on leadership tensions in three prominent domains in the literature, leadership change, leadership assertiveness and strategic orientation. Our findings identify and detail the management of six core tensions that leaders experience across a five-stage turnaround process model. We conclude that effective turnaround leadership is less about particular skill sets or ‘types’ of leaders for different stages of the recovery process, and more about their ability to purposefully navigate and balance apparently conflicting activities within these tensions. We discuss the implications of these findings for theory and practice.     

The downside of transformational leadership when encouraging followers to network

Network scholars argue that one responsibility of leaders is to help their followers develop social capital. We suggest that one way leaders do this is by encouraging followers to engage in networking behavior. However, we argue that such encouragement is more effective when leaders are seen as less transformational, because followers are then less able to benefit from their leaders’ social capital. We support our arguments with a study of 142 followers and their leaders. Our findings show that followers engage in greater networking behaviors when encouraged by their leaders to do so, but this association is moderated by leaders’ transformational leadership style such that it is stronger as transformational leadership behaviors decrease. We thus introduce an unrecognized cost of leaders’ transformational leadership behaviors. Our findings contribute to research on networking behavior by investigating the role of transformational leadership style, and suggest avenues for research linking social capital and leadership.     

Exploring the relationship of leadership skills and knowledge to leader performance

The criterion-related validity of constructed response measures of complex problem-solving skills, social judgment skills, and leader knowledge is examined with respect to two criteria of leader effectiveness: leader achievement and quality of solutions to ill-defined leadership problems. Core aspects of the leader capabilities model are tested using these measures in a series of hierarchical regression analyses. Results indicate that constructed response measures of key leader capabilities account for variance in leader effectiveness and provide initial validation evidence for a central part of the theoretical model. The problem-solving, social judgment and knowledge measures account for significant variance in leadership criteria beyond that accounted for by cognitive abilities, motivations, and personality. Initial evidence also suggests that complex problem-solving skills, social judgment and leader knowledge partially mediate the relationship of cognitive abilities, motivation and personality to leader effectiveness. Implications and generalizability of the results are discussed in light of a related civilian leadership study conducted within the U.S. Department of Defense.     

Advancing the science of 21st-century leadership development: Theory,research, and practice

Leadership development seeks to understand, predict, and intervene effectively in addressing the questions of how individuals develop as leaders and how collections of individuals develop a capacity for leadership. These questions are attracting scholars interested in the factors and processes involved in developing leaders and leadership. Presented in the special issue is a set of state-of-the-science empirical studies and theory development articles representing 21st century leadership development. We also provide a brief overview of issues related to the leadership development field – broadly construed to include individual leader development – that are especially pertinent and where the research evidence is scarce or contradictory. These areas are theoretical foundations of leadership development, practices and methods of development and talent selection for development, accurately estimating return on investment for leadership development initiatives, the role of time in developing leaders and leadership, understanding and remedying biases and inequities in leadership development, and the role of development in mitigating the so-called dark side of leadership. Although we have learned much about leader and leadership development over the past 20 years, there is an ongoing need for more research and theory development especially with respect to identifying causally and practically relevant knowledge able to inform policy.     

Core self-evaluations mediate the association between leaders' facial appearance and their professional success: Adults' and children's perceptions

Although the link between facial appearance and success is well established, the mechanisms responsible for this association have remained elusive. Evolutionary theory suggests that perceived leadership characteristics should be important for men's self-concept. Drawing on implicit leadership theory and evolutionary perspectives, we therefore examined the associations between first impressions based on facial appearance, core self-evaluations (CSEs), leadership role occupancy, and career success among a sample of working men. In Study 1, we found that CSEs mediated the relationship between individuals' facial appearance and measures of their success as leaders. In Study 2, we replicated these results using children's ratings of facial appearance, thus suggesting that basic properties of the targets' faces communicated their leadership ability more than the perceivers' life experience or acquired knowledge. These results suggest that people may use facial appearance as a diagnostic tool to determine the leadership ability of others.     

Leaders's language and employee proactivity: Enhancing psychological meaningfulness and vitality

Today's volatile environment and pressure for continuous improvement require leaders to play a central role in fostering and nurturing employee proactivity. Effective leaders use their communication skills as a key tool to motivate employees to achieve organizational goals. In this study, we tested a model in which leader motivating language (manifested as direction-giving, empathetic, and meaning-making language) fosters the development of employee proactive behavior by shaping a psychological context of meaningfulness and cultivating a motivational state of employee vitality. The findings indicate that the leader motivating language is related directly and indirectly, through psychological meaningfulness, to employee vitality. We also found that psychological meaningfulness and employee vitality are mediating mechanisms through which leader motivating language can result in enhanced employee proactivity. This study advances theory and research on employee proactivity as a contingency of leadership motivating language by integrating three emerging streams of research—relational leadership, relational communication, and proactivity. Theoretical and practical implications are discussed.     

Leadership development as identity formation: middle managers’ leadership learning from MBA study

This article challenges often unquestioned understandings within human resource development (HRD) of leadership as comprising knowledge and skills and leadership development as involving the transfer of such knowledge and skills from formal interventions to workplace performance. Using the notions of leadership as identity and learning as a process of identity formation, the article reports qualitative research showing how a case-study group of middle managers in a sector of the economy undergoing unprecedented turbulence, UK local government, developed a sense of themselves as leaders and how a key HRD intervention, a corporate MBA, facilitated such identity development. In particular, the article uses situated learning theory to examine how informal communities of practice associated with Master of Business Administration (MBA) study provided a forum for identity building of equal developmental value to the formal MBA curriculum. The implications for future HRD research are established and suggestions made for the re-design of HRD interventions to best enable identity-work.     

Bounded leadership: An empirical study of leadership competencies,constraints, and effectiveness

Contrary to the previous leadership theories, which focus on specific and narrow aspects of leadership such as employee characteristics, leader’s authenticity, or boundary spanning, the bounded leadership theory is a broad and complex concept. It takes simultaneously many constraints, which are related to activities on an individual, team, organization, and stakeholder level. This study applies the bounded leadership theory to analyze the leadership constraints as the mediator of the relationship between leadership competencies and effectiveness. Our findings show that leaders’ competencies are not enough for them to be effective. Specific competencies enable leaders to overcome the set of constraints and then to increase their effectiveness.     

When managers become leaders: The role of manager network centralities,social power,and followers' perception of leadership

We explore how formal managers' centralities in both positive and negative networks predict followers' perceptions of their leadership. By incorporating social networks and social ledger theory with implicit leadership theories (ILTs), we hypothesize that formally assigned group leaders (managers) who have more positive advice ties and fewer negative avoidance ties are more likely to be recognized as leaders by their followers. Further, we posit that managers' informal networks bring them greater social power, an important attribute differentiating leaders from non-leaders. We conducted two survey-based studies in student and field teams to test the hypotheses. Based on nested data in both studies, we found support for our hypotheses. These results remain robust across the two studies even though they used different designs (cross-sectional versus longitudinal), different samples (field versus students) across different countries (United States versus India), and a host of control variables at both the leader and follower levels. We find that managers who are central in the advice network are socially powerful and are seen as leaders by individual followers. In contrast, managers who are avoided by followers lack informal social power are not seen as leaders. We conclude by discussing the theoretical and practical implications of our findings and the ways in which our theory and results extend ILTs and social network theory.