Revisiting the mediating role of trust in transformational leadership effects: Do different types of trust make a difference?

This study examines the mediating effects of cognitive and affective trust on the relationship between follower perceptions of transformational leadership behavior and their work outcomes. Using data obtained from 318 supervisor–subordinate dyads from a manufacturing organization located in mainland China, structural equation modeling results revealed that affective trust fully mediated the relationships between transformational leadership and the work outcomes of followers, including their affective organizational commitment, organizational citizenship behaviors (OCBs), and job performance. In contrast, cognitive trust negatively mediated the relationship between transformational leadership and follower job performance, and had insignificant effects on their affective organizational commitment and organizational citizenship behaviors. These findings highlight the importance of affective trust as a mechanism which translates transformational leadership into positive work outcomes for the organization.     

Do leadership role occupancy and transformational leadership share the same genetic and environmental influences?

Using data collected from 107 pairs of identical and 89 pairs of fraternal female twins, this study examined the genetic and environmental associations between transformational leadership and leadership role occupancy. Results show that 78% of the covariance between the two leadership variables was attributable to overlapping genetic factors, while 22% of the covariance to overlapping environmental factors. In particular, 13% (2%) of the variance in leadership role occupancy was accounted for by the same genetic (environmental) factors related to transformational leadership. Unique sets of genetic and environmental variables, which are not associated with transformational leadership, explained 16% and 69% of the variance in leadership role occupancy, respectively. The results suggest that multiple manifestations of leadership (i.e., transformational leadership and leadership role occupancy) are differentially heritable. Although the association between these two variables is largely due to overlapping genetic rather than environmental factors, unique (i.e., non-overlapping) genetic and environmental influences still play an important role in impacting these leadership variables.     

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.     

Same difference? Exploring the differential mechanisms linking servant leadership and transformational leadership to follower outcomes

This paper aimed to provide insights into the different mediating mechanisms through which servant leadership (SL) and transformational leadership (TFL) affect followers. We also investigated environmental uncertainty as a moderator of the effects of servant leadership and transformational leadership. Based on the results of two experimental studies and one field study, we concluded that both SL and TFL were related to organizational commitment and work engagement; however, the manner in which they exerted their influence differed. SL worked primarily through follower need satisfaction, whereas TFL worked mainly through perceived leadership effectiveness. The moderating influence of uncertainty was inconsistent across the studies.     

What Does Hollywood Think Nonprofit CEOs Do All Day? Screen Depictions of NGO Management

This article explores the cinematic image of chief executive officers (CEOs) of nonprofit organizations in the U.S. Movie CEOs head a broad range of the nongovernmental organizations, including hospitals, colleges, social service agencies, prep schools, labor unions, legal aid, faith-based and youth-serving. They are predominantly white males. Their professional backgrounds include medicine, teaching, union organizing, social activism, clergy, law and environmental activism. Movie audiences see nonprofit CEOs involved in the mundane and inspirational elements of day-to-day management. One of their primary responsibilities consists of overseeing line functions, including fund raising, media relations, managing volunteers and board relations. But, nonprofit managers are also responsible for broader concerns, such as protecting the organization's values and equilibrium. Some movie nonprofit CEOs are shown multitasking and trying to balance competing demands from multiple stakeholders.     

CEO transformational leadership and organizational outcomes: The mediating role of human–capital-enhancing human resource management

Using a field survey and company data of 170 firms in Singapore, we tested an integrated theoretical model relating CEO transformational leadership (TL), human–capital-enhancing human resource management (HRM), and organizational outcomes, including subjective assessment of organizational performance, absenteeism, and average sales. We found that human–capital-enhancing HRM fully mediates the relationship between CEO transformational leadership and subjective assessment of organizational outcomes and partially mediates the relationship between CEO transformational leadership and absenteeism. We discuss practical and theoretical implications.     

The moderating role of leader and follower sex in dyads on the leadership behavior–leader effectiveness relationships

Transformational leadership (TL) and leader–member exchange (LMX) literatures provide theoretical frameworks and accompanying empirical evidence for studying the relationship between leader behavior and effectiveness. Although prior attention has been given to gender differences in leadership style and leader effectiveness, the moderating effects of the sex of the leader and subordinate on the leadership–leader effectiveness relationship have not been investigated. In a field study of employees from a manufacturing plant, we examined whether leader and subordinate sex, and the sex composition of the leader–subordinate dyad, moderated the linkages of each set of leader behaviors (i.e., TL and LMX) with actual evaluations of leader effectiveness provided by the leader's subordinates and direct supervisor. Although female leaders were rated as more effective than male leaders overall, a fine-grained analysis of leader–subordinate dyads revealed that the male leaders benefited more than the female leaders from the use of transformational leadership in the leader behavior–leader effectiveness relationship. Implications and future research directions are discussed.     

Do women directors contribute to R&D? The role of critical mass and expert power

Journal of Management and Governance - The paper provides insights into the implications for innovation input of having women on company boards. It sheds light on the effects of critical mass and...     

Do remittances to emerging countries improve their economic development? Understanding the contingent role of culture

We contribute to extant research that has largely focused on foreign direct investment by examining how an under-studied type of financial inflow (remittances) influences the economic development of recipient Emerging Market Countries (EMCs). We do so by explaining how variations in the cultural context of recipient EMCs influence the value-generating effects of remittances. Our study helps us understand why certain nations can use remittances to improve their economic development (whereas others fail to do so) and the role that cultural contingencies play in determining such outcomes. The empirical analysis of 28 EMCs reveals an interesting pattern, showing that masculinity and power distance increase the economic effects of remittances, whereas uncertainty avoidance and individualism decrease such effects.     

Do emotionally perceptive leaders motivate higher employee performance? The moderating role of task interdependence and power distance

Extant emotional intelligence research has examined the relationship between employees' emotional intelligence and their job performance. We developed theory to extend this line of research to the domain of leader–employee relationships. Integrating emotional intelligence research with social exchange theory, we contended that leaders' emotion perceptions enhance employees' job performance. Drawing from social impact theory, we further argued that the strength of this relationship depends upon two contextual variables: within-group task interdependence and power distance. We tested our hypotheses using a sample of 350 employee nested in 74 workgroups. Hierarchical linear modeling results supported the hypothesized relationships between leaders' emotion perceptions and employees' job performance, and revealed that this relationship was strengthened by task interdependence and attenuated by power distance.     

Does power corrupt the mind? The influence of power on moral reasoning and self-interested behavior

We test whether leaders' power shapes their reasoning about moral issues and whether such moral reasoning subsequently influences leaders' display of self-interested behavior. We use an incentivized experiment to manipulate two components of leader power: power over more versus fewer followers and power to enforce one's will by having discretion over more versus fewer payout options to allocate between oneself and one's followers. We find that having power over more followers decreased leaders' principled moral reasoning, whereas having higher power to enforce one's will enabled leaders to engage in self-interested behavior. We also find suggestive evidence that power over increases self-interested behavior by decreasing principled moral reasoning; the effect of power to was not mediated by moral reasoning. These results illustrate that power activates self-interest within and outside the context in which power is held. They also show that moral reasoning is not a stable cognitive process, but that it might represent an additional path via which power affects self-interested behavior.     

Do Foreigners Cushion Native Jobs? The Case of European Regions in the 1990s

Abstract. This paper investigates whether foreigners cushion native labour during the phases of the economic cycle. The theoretical model, based on the work of Blanchard and Katz (Brookings Papers on Economic Activity 0(1): 1–75, 1992), assumes that foreigners supply labour with a higher wage elasticity than natives. The empirical analysis, based on an unbalanced panel of 161 European regions during 1988–97, shows that following a labour demand shock the variability of native employment growth is lower the higher the proportion of foreign citizens in the local labour force. These results suggest that foreigners absorb some of the effects of the shock, shielding natives from its full impact. The analysis also reveals that the main channel mediating this ‘cushioning’ effect is the inter‐regional migration of foreign workers, followed (as a far distant second) by their higher/lower unemployment rates.     

Do exits proxy a liability of foreignness?: The case of Japanese exits from the US

Progress in understanding the liability of foreignness requires accurate measurement of this concept. This paper investigates whether exits of foreign affiliates from a given host market provide a reliable measure. We tackle this question by investigating 32 exits of Japanese manufacturing affiliates from the US. Our goal is to assess the extent to which exits are driven by a liability of foreignness and thus whether exits can serve as a reliable measurement of this liability. We find that less than half of our exits are attributable to a liability of foreignness. We conclude that while the data confirm a liability of foreignness for Japanese early entrants into the US, the presence of many other motives for exit suggests caution when inferring such a liability from exits, especially when exit costs are low.     

Does it pay to be eco? The mediating role of competitive benefits and the effect of ISO14001

Eco-innovation has become an important instrument to help companies reduce their environmental impact and gain a competitive advantage in increasingly competitive environments. Despite recent research conducted in this field, findings concerning the relationship between eco-innovation and firm performance remain conflicting, inconclusive and incomplete. This study aimed to clarify this relationship by incorporating competitive benefits as a mediator between eco-innovation and firm performance. Three core questions are examined: How does eco-innovation influence competitive benefits and firm performance? Do competitive benefits mediate the relationship between eco-innovation and firm performance? How does ISO14001 influence competitive benefits and firm performance? The study finds that competitive benefits mediate and strengthen the relationship between eco-innovation and firm performance. In addition, the results reveal that ISO14001 positively affects competitive benefits and thus leads to greater competitive benefits, while the association between ISO14001 and firm performance is not found to be statistically significant. The paper concludes with a discussion of implications for policy makers and companies, limitations, and future research directions.     

The changing role of the supervisory board chairman: the case of the Netherlands (1997–2007)

Over the last ten years, the corporate governance context in most Western countries has changed as a result of irregularities, increased regulation, heightened societal expectations and shareholder activism. This paper examines the impact of the changing context on the role of chairmen of supervisory boards in the Netherlands. Based on a combination of thirty semi-structured interviews with board members of leading Dutch corporations and secondary data on the position of supervisory board chairmen at the top-100 listed firms in the Netherlands, the study reveals that board chairmen have become increasingly involved in both their control and service roles. While the demographics (i.e., age, tenure, gender and nationality) of chairmen have hardly changed over the last decade, chairmen are spending considerably more time on boards and committees, have reduced the number of board interlocks and have become more active on the forefront of the corporate governance discussion. The paper highlights several implications for scholars and practitioners.     

Correction to: Do women directors contribute to R&D? The role of critical mass and expert power

Journal of Management and Governance - An amendment to this paper has been published and can be accessed via the original article.     

Shifting the Goalposts? Analysing Changes to Performance Peer Groups Used to Determine the Remuneration of FTSE 100 CEOs

This paper examines year‐on‐year changes to the composition of performance peer groups used for relative performance evaluation in setting CEO pay in FTSE 100 companies and finds evidence of peer selection bias. The authors find that firms keep their peer groups weak by excluding relatively stronger performing peers. They also show that peer selection bias is less pronounced in firms with higher institutional investor ownership, which suggests that institutional investors might be aware of the risks of peer selection bias. The results suggest that peer group modifications can be viewed, at least in part, as an expression of managerial rent‐seeking.     

When do leaders matter? Ownership,governance and the influence of CEOs on firm performance

Leadership and strategic management research suggests that the extent to which CEOs influence performance largely depends on the presence or absence of certain factors. These factors may include the characteristics of the task at hand, subordinates, the organization itself or the external environment. Among these factors, a fundamental contingency that has received little empirical attention is an organization's ownership and governance structure—that is, who owns and monitors the organization. In this paper, we outline how different ownership and governance structures can present the opportunity for, or limit, leader influence and empirically examine the extent to which CEO effects on financial performance depend on these structures. Examining organizations in the same industry but with different ownership and governance structures, our results suggest that these structures are closely aligned with the degree to which CEOs influence firm performance. Our findings support the notion that leaders matter most when ownership and governance structures correspond with a weak or ambiguous institutional logic. This study contributes new insight into the “opportunity structure” of CEO influence, that is, the organizational factors that shape leader discretion and, hence, condition the CEO's level of influence over firm performance.