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.     

Does valuing androgyny and femininity lead to a female advantage? The relationship between gender-role,transformational leadership and identification

The notion of ‘think manager–think male’ has been demonstrated in many studies. The current study examines whether leaders are perceived as more effective when they have ‘feminine’, ‘masculine’ or ‘androgynous’ characteristics, and how this relates to the leader's and followers' sex. Using carefully matched samples of 930 employees of 76 bank managers, we studied the relationship between managers' gender-role identity (perceived ‘femininity’, ‘masculinity’ and ‘androgyny’) and how this relates to leadership effectiveness in terms of transformational leadership and personal identification with the leader. Our findings show that among both male and female leaders, ‘androgyny’ was more strongly related to transformational leadership and followers' identification than ‘non-androgyny’, and that leaders' ‘femininity’ was more strongly related to leadership effectiveness than ‘masculinity’. Furthermore, the results show that women paid a higher penalty for not being perceived as ‘androgynous’ (mixing ‘femininity’ and ‘masculinity’), in comparison to men with regard to personal identification. When examining same- versus cross-sex relationships, we found that ‘non-androgynous’ male managers were rated higher by their male employees than by their female employees. Our findings suggest that women and men who are interested in being perceived as effective leaders may be well advised to blend ‘feminine’ and ‘masculine’ behaviors, and even more so when they are in situations of non-congruency (i.e., women in leadership roles and leading in cross-sex relationships). We discuss the implications of these findings for both theory and practice.     

Do trust and distrust in coopetition matter to performance?

It is widely acknowledged that firms intensely engage in coopetition (i.e., simultaneous cooperation and competition) and obtain unique benefits from such relationships. However, limited knowledge exists about how and when coopetition intensity leads to superior performance. Building on the theoretical work documenting that both trust and distrust are critical for enhancing performance in interfirm relationships, we address the aforementioned gap by looking into the distinct yet beneficial roles of trust and distrust in coopetition. More specifically, we argue that whereas trust likely serves as an intervening mechanism through which coopetition intensity enhances relationship performance, distrust positively influences the association between coopetition intensity and relationship performance. We test our hypotheses on a sample of 225 Swedish firms engaged in coopetition, and provide empirical evidence that trust and distrust play distinct yet important roles in achieving superior performance from coopetition.     

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.     

Does shared and differentiated transformational leadership predict followers' working conditions and well-being?

Transformational leadership has been widely researched and is associated with followers' performance, attitudes, and subjective well-being at the individual level. Less research has focused on transformational leadership as a group phenomenon. In a survey study (425 followers and 56 leaders), we examined how group-level and differentiated transformational leadership shape followers' perceptions of their working conditions and individual subjective well-being. There was stronger evidence that differentiated transformational leadership's relationships with indicators of well-being was mediated by perceptions of working conditions, in that 10 out of 20 tests for mediation using differentiated transformational leadership were significant, compared to just three out of 20 for group-level transformational leadership. The results suggest that transformational leadership needs to be studied as a group phenomenon considering how group-level perceptions may impact on followers' well-being and that leaders need to realize that there is an “I” in groups and addition to a “we” in groups.     

Is there potential in assessing for high-potential? Evaluating the relationships between performance ratings,leadership assessment data,designated high-potential status and promotion outcomes in a global organization

While leadership is a critical component of organizational success, organizations need to be more effective at classifying talent based on future potential vs current performance. This need raises the question as to whether the assessment of leadership potential is truly adding value or enhancing the talent review and classification process. Data from 9,784 participants in PepsiCo’s Leadership Assessment and Development (LeAD) program—a multi-trait, multi-method (MTMM) assessment and development process—are used to examine relationships between individual performance, assessed potential, organizationally designated potential, and promotion rates post assessment. Results from the analyses indicate that assessed potential provides unique variance above performance alone in determining process outcomes (i.e., designated potential and promotions), and therefore can be useful for making more informed talent management decisions. The applications of these measures within the current organization as well as limitations of the study and areas for future research are discussed.     

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.     

Is there such a thing as leadership skill? – A replication and extension of the relationship between high school leadership positions and later-life earnings

This paper replicates and extends Kuhn and Weinberger's (2005) “Leadership Skills and Wages”. The original article found that those white males who were club presidents and team captains in high school earned significantly more eleven years later. As the empirical relationship between leadership positions and subsequent earnings includes those characteristics that predate high school and those that are developed because of leadership activity participation in high school, the original study cannot differentiate between leadership skills developed earlier and those developed in high school. We employ propensity score matching on leadership exposure in high school to control for potential endogenous observable selection and provide estimates from instrumental variable regressions to assess the robustness of the original effects to other omitted causes. To investigate the generalizability of the original findings, we also extend the sample by including females and non-white males. Lastly, we investigate how an extension of the initial (11-year) time horizon to almost 50 years affects the coefficient estimates. We can corroborate the original effect that those who occupied leadership positions as captains and presidents earn more 11 years after high school and report higher income some 50 years after high school. We fail, however, to find effects for those who occupied only a role as captain or president solely. Moreover, the findings do not generalize to the samples of females and non-white males. Our findings provide important insights into later-life benefits of early leadership exposure and have implications for those designing leadership training programs and those taking on (or refraining from) leadership positions in early life.     

Operant leadership and employee citizenship: A question of trust?

The present study replicates and extends previous research examining the relationship between operant leader behavior and organizational citizenship behavior (OCB). Drawing on recent theory proffering trust as an important explanatory mechanism, we hypothesized that employee trust mediates the relationship between operant leader behaviors and OCB. Further, we argue that the valences associated with reward and punishments augment the effects of both contingent and non-contingently administered behaviors. Using data collected from 475 employees of a United States manufacturing firm, results indicate that trust fully mediates the relationship between operant leadership and OCB. Further, results confirmed that contingently based reward and punishment leader behaviors are more constructive in engendering trust and citizenship than non-contingent leader behaviors.     

Are transformational leaders fair? A multi-level study of transformational leadership,justice perceptions,and organizational citizenship behaviors

This study examined the psychological processes that might underlie the relationship between transformational leadership (i.e., individualized consideration and charisma) and individual- and group-level multifocal organizational citizenship behaviors (OCBs). In doing so, we focused on the potential mediating role of individual- and group-level justice perceptions of a follower(s) in transformational leadership processes. Specifically, we hypothesized that at the individual level, a leader's individualized consideration relates to leader-directed OCBs through interpersonal justice, whereas at the group level, a leader's charisma relates to group-directed OCBs through procedural justice climate. The individual- and group-level models as well as the various alternative models were tested using a sample of 159 employees (including 40 supervisors and their immediate subordinates) embedded in 40 groups from 25 branches of a large, multinational bank in Korea. The results supported our hypothesized relationships, suggesting that individual- and group-level justice perceptions play important roles in the linkage between transformational leadership behaviors and OCBs at both the individual and the group levels.     

‘Let's share!’ The mediating role of employees' self-determination in the relationship between transformational and shared leadership and perceived knowledge sharing among peers

Building on social-exchange and self-determination theory, this study aimed to contribute to the scholarly literature on leadership and knowledge sharing by simultaneously testing how shared and transformational leadership and their interrelatedness may foster employees' perceptions of knowledge sharing behaviour among peers. Additionally, we investigated the mediating role of employees' basic psychological needs satisfaction (in terms of autonomy, competence and relatedness, respectively) as an additional explanatory mechanism to reveal how shared and transformational leadership may foster individuals' perceptions of knowledge sharing behaviour among peers. We employed PLS structural equation modelling to analyse survey data obtained from professionals in an R&D unit of a knowledge-intensive firm. We found shared leadership to be the most important factor enhancing employees' perceptions of knowledge sharing among peers, both directly and indirectly through employees' satisfaction of the need for autonomy. Transformational leadership was found to foster employees' knowledge sharing ultimately, through shared leadership and the need for autonomy satisfaction. We concluded that shared forms of leadership supplemented with transformational leadership on the part of formal leaders are important in contemporary work environments as they can foster employees' perceptions of knowledge sharing among peers and contribute towards employees' self-determination, which ultimately enhances perceptions of knowledge sharing among peers.     

The missing link? Investigating organizational identity strength and transformational leadership climate as mechanisms that connect CEO charisma with firm performance

In this paper, we suggest that CEO charisma is related to firm performance via its effect on two important mediators. First, charismatic CEOs are expected to raise the transformational leadership climate within an organization. Second, both CEO charisma and transformational leadership climate are proposed to increase a firm’s organizational identity strength (OIDS), which in turn, relates positively to firm performance. We tested these propositions on a sample of 150 German companies (20,639 employees) with a three-path mediation model at the organizational level of analysis, utilizing four independent data sources. Our study helps open the black box of organizational leadership and organizational performance by demonstrating top-level leadership’s (CEO charisma) cascading effect on the TFL climate throughout the organization and by showing that OIDS mediates both leadership levels’ relationships with firm performance. Further, our study is the first to investigate the relationship between OIDS and performance at the organizational level of analysis.     

Culture specific and cross-culturally generalizable implicit leadership theories: Are attributes of charismatic/transformational leadership universally endorsed?

This study focuses on culturally endorsed implicit theories of leadership (CLTs). Although cross-cultural research emphasizes that different cultural groups likely have different conceptions of what leadership should entail, a controversial position is argued here: namely that attributes associated with charismatic/transformational leadership will be universally endorsed as contributing to outstanding leadership. This hypothesis was tested in 62 cultures as part of the Global Leadership and Organizational Behavior Effectiveness (GLOBE) Research Program. Universally endorsed leader attributes, as well as attributes that are universally seen as impediments to outstanding leadership and culturally contingent attributes are presented here. The results support the hypothesis that specific aspects of charismatic/transformational leadership are strongly and universally endorsed across cultures.     

Embedded leadership: How do a leader's superiors impact middle-management performance?

This study uses a low-fidelity simulation to test the effect superiors can have on the leadership style and cognition of their subordinates who also are leaders. These leaders within the organization, often referred to as middle managers, occupy an important, albeit overlooked position within an organization. In order to emphasize the leadership that occurs at the middle levels of management the term ‘embedded leader’ is used. Using a sample of 224 undergraduates, three variables were manipulated to examine their effects on participant sensemaking, confidence, and participative leadership. The variables manipulated were the severity of individual level consequences (high vs. low), the severity of organizational consequences (high vs. low), and the superior's motivational strategy (coercive vs. supportive vs. passive style). It was found that a leader's superior can influence their leadership behaviors in a complex manner. Participant sensemaking was higher when their superior emphasized low levels of individual (or personal) consequences. Participative leadership was higher when the supervisor framed organizational level consequences as being high. Findings for participant confidence were complex, but generally suggest that one's superiors can promote or hinder confidence in a variety of situations.     

Efficiency and stock performance of EU banks: Is there a relationship?

The purpose of this paper is to examine whether the stock performance of EU listed banks is related to their efficiency. Our sample consists of 171 banks operating in 15 EU markets over the period 2002–2006. First, we use stochastic frontier analysis to estimate the cost and profit efficiency of banks, while controlling for environmental factors. Then, we investigate if changes in profit and cost efficiency are reflected in changes in stock prices. Our results indicate that the change in profit efficiency has a positive and significant impact on stocks prices; however, there is no relationship between changes in cost efficiency and stock returns.     

Public Versus Private Job Satisfaction. Is there a Trade-off between Wages and Stability?

Public Organization Review - This paper examines the differences in job satisfaction in the public and private sector using the Spanish Survey of Life Quality at Work throughout the period...     

What explains cultural differences in leadership styles? On the agricultural origins of participative and directive leadership

Why do we observe either participative or directive leadership in organizations? I test an evolutionary-informed theory suggesting that organizational leadership is currently less participative (i.e., close supervision, rare delegation) among societies that used intensive forms of agriculture in the past. Intensification caused increased social complexity and skewed power distribution, promoting the emergence of directive leaders and eventually shaping followers' preferences for and perceptions of leadership. Combining evidence, secondary data, and methods developed in economics, anthropology, and applied psychology, I document a negative relationship between traditional agricultural intensity and followers' participative leadership prototypes. I then study the link between traditional agriculture and reliance on delegation to subordinates across firms. I discuss competing hypotheses, explore the interplay between traditional agriculture and organizational-level factors, and show that traditional agricultural intensity does not predict most other leadership prototypes and management practices. Implications for leadership theory–with a focus on evolutionary approaches–are finally discussed.     

Out of sight and out of mind? A literature review of occupational safety and health leadership and management of distributed workers

Distributed workers – those who work autonomously and remotely from their organisation’s main locations for at least some of their work-time – are an important and growing proportion of the workforce that share common characteristics of temporal and spatial distance. Yet, many leadership styles and management practices assume face-to-face interaction, potentially rendering them less helpful in trying to ensure good occupational safety and health (OSH) outcomes for distributed workers. We conducted a systematic literature review to examine the leadership and management of OSH for distributed workers. Twenty-three papers were identified. Eleven papers identified established leadership styles, including leader-member exchange, (safety specific) transformational and considerate leadership. Twenty papers examined management. Findings from these 20 papers were interpreted as representing resources, deployed through management and utilised by managers to ensure OSH for distributed workers, including communication technologies, social support and a good safety climate. Despite limited research in this area, findings indicate the importance of both leadership and management in ensuring OSH for distributed workers. Findings suggest a fertile area for future enquiry.     

Is there a physician union in your future?

Physician unions are in the news. Patient management and patient care decisions are increasingly being taken out of the hands of physicians and put into the hands of "The Suits." To take their case for a return to physician-driven patient care to the people, some physicians are joining unions. Some are even collectively bargaining for salary and other issues that are historically more closely associated with unions. The simple fact is that physician unions exist and the number of physicians joining them is expected to increase. What are the pros and cons of unionization? What motivates physicians to join unions, and what potential negative and positive factors are associated with physician unionization? This article reviews the pros and cons and the issues related to physician unions, for physicians attempting to answer the question, "Is there a union in my future?"     

Is a loosely specified regulatory intervention effective in disciplining management commentary? The case of performance indicator disclosure

This paper offers a contribution to the call for research on the effectiveness of regulatory interventions governing management commentary disclosure. Specifically, we focus on the mandatory requirement concerning performance indicator disclosure introduced by the Modernisation Directive (2003/51/EC). In keeping with other regulators, the European legislator opted to implement a regulatory approach based on a rule with loose specifications. To understand the effects of this Directive, we have investigated the Italian context, in which neither the national legislator nor the standard setter have supported companies with detailed specifications or guidelines aimed at integrating the European provision. We have compared companies’ disclosure practices before and after the adoption of the Directive, investigating the number of disclosed indicators and also their modalities of presentation, as they are considered essential to guaranteeing the quality of this disclosure. Our results document that a mandatory intervention, even if based on loose specifications, is associated with an increase in disclosure practices. Nevertheless, such regulation does not seem able to guarantee high quality disclosure practices. In fact, before and after the regulation, companies primarily disclose common financial measures. Moreover, the usefulness of such disclosure is undermined by a limited compliance with the international guidelines concerning the modalities of presentation. These results reveal some weaknesses in the European approach to performance indicator regulation. In general, the EU legislator fails to explain the purpose and the objective of performance indicator disclosure and does not take into account the differences between financial and non-financial indicators. Furthermore, it does not provide firms with clear guidelines concerning the presentation modalities.