Investigating the relationship between transformational leadership and organizational performance (Case Study: Firooz Hygienic Group)
Subject Areas :
Organizational Development Management
Vadood Javan Amani
1
,
Hamid Akbari
2
1 - Department of Business Administration, Islamic Azad University, Firoozkooh Branch.
2 - Department of English Translation, Imam Reza International University of Mashhad
Received: 2021-04-30
Accepted : 2021-08-09
Published : 2021-05-22
Keywords:
innovation,
performance,
Flexibility,
Transformational Leadership,
Moderation,
Abstract :
Transformational organizational performance is one of the important prerequisites for achieving organizational flexibility and innovation. Accordingly, the purpose of this study is to investigate the impact of transformational leadership on organizational performance. The method of the present research is practical based on the purpose of study and in terms of nature and methodology is among the causal researches. To select the sample, a simple random sampling method and the standardized questionnaire measurement tool in Cui et al., (2020) study were used to collect data. Thus, the sample size was determined 227 employees of Firooz Hygienic Group as the statistical population of the study based on Cochran's formula. Formal and structural validity were used to determine the validity of research and Cronbach's alpha coefficient was calculated to assess the reliability of the questionnaire. The required research data were completed and collected using the descriptive statistics techniques with SPSS22 software and inferential statistics techniques with Smart PLS3 statistical software through structural equation modeling. Research findings indicate that transformational leadership has a positive effect on organizational performance. As a result, it is suggested that the company managers should provide conditions for managers to move from traditional management styles to transformational styles and improve employee performance in today's changing world.
References:
Akbari, M., allah Karnema, A., & Molla Hossaini, A. (2013). The Study of the Relation between Transformational Leadership and Organization Performance (Sampling: Government Organizations of Kerman Province). Police Organizational Development, 10 (45), 63-86. http://pod.jrl.police.ir/article_9280_7988e1f4dc4bb8b72ff00b713a6c256a.pdf (In Persian)
Argyris, C. (2010). Organizational traps: Leadership, culture, organizational design (M. Kazemi Movahed, Trans.; 15 ed.). Oxford University Press
Avolio, B., Bass, B., & Jung, D. (2004). MLQ: Multifactor leadership questionnaire. Redwood City. CA: Mind Garden.
Becker, B. E., & Huselid, M. A. (2006). Strategic human resources management: where do we go from here? Journal of management, 32(6), 898-925. https://doi.org/http://dx.doi.org/10.1177/0149206306293668.
Çekmecelioğlu, H. G., & Özbağ, G. K. (2019). The Impact Transformational Leadership in Developing Psychological Empowerment. International Journal of Humanities and Social Science (IJHSS), 9(8), 136-144. http://dx.doi.org/10.30845/ijhss.v9n8p1
Cui, W., Shen, H., Yan, Y. Q., & Shi-zheng, H. (2020). The Impact of E-service quality in P2P accommodations on Customer Behavior Intention: Evidence from Chinese Customers. Revista Argentina de Clínica Psicológica, 29(5), 296-319. https://doi.org/dx.doi.org/10.24205/03276716.2020.1031
Dehghani Ghahnavieh, A., & Naderi Bani, M. (2015). A Study of the Role of Transformational Leadership in Innovation and Organizational Performance Fourth International Conference on Accounting and Management and First Conference on Entrepreneurship and Open Innovation, Tehran. https://civilica.com/doc/476274 (In Persian)
Elenkov, D. S. (2002). Effects of leadership on organizational performance in Russian companies. Journal of business research. 55(6), 467-480.
Fang, N., Yuli, Z., & Hongzhi, X. (2009 ). Acquisition of resources, formal organization and entrepreneurial orientation of new ventures. Journal of Chinese Entrepreneurship, 1 (1), 40-52. http://dx.doi.org/10.1108/17561390910916877
Farhadi Nejad, M., Alikarami, S., & Abdi, M. (2019). Examining the Impact of Green Transformational Leadership on Green Behaviors Considering the Mediating Role of Environmental Attitudes. Transformation Management Journal, 11(2), 29-52. https://dx.doi.org/10.22067/pmt.v11i2.74034 (In Persian)
Ferrell, O. C., & Fraedrich, J. (2016). Business ethics: Ethical decision making & cases (10 ed.). Cengage learning.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50. https://doi.org/https://doi.org/10.2307/3151312
García‐Morales, V. J., Lloréns‐Montes, F. J., & Verdú‐Jover, A. J. (2008). The effects of transformational leadership on organizational performance through knowledge and innovation. British journal of management, 19(4), 299-319. https://doi.org/http://dx.doi.org/10.1111/j.1467-8551.2007.00547.x
Golmohammadi, E., Kafcheh, P., & Soltanpanah, H. (2013). Leadership Styles and Strategic Thinking in Organizational Level. Journal of Strategic Management Studies, 4(15), 93-114. http://www.smsjournal.ir/article_88789.html?lang=en (In Persian)
Gumusluoglu, T., & ILsev, A. (2009) Roles of internal & external support for innovation leadership and organizational innovation. The Journal of Product Innovation Management, 26(3), 264-277. https://doi.org/doi.org/10.1111/j.1540-5885.2009.00657.x.
Hancott, D. E. (2005). The relationship between transformational leadership and organizational performance in the largest public companies in Canada. Capella University.
HEJAZI, R., & RAMSHEH, M. (2013). EXPLORING THE RELATIONSHIPS BETWEEN STRATEGY, INNOVATION, AND MANAGEMENT CONTROL SYSTEMS. 2(7), 61-74. https://jmaak.srbiau.ac.ir/m/article_7500.html?lang=en
Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic management journal, 20(2), 195-204. https://doi.org/https://doi.org/10.1002/(SICI)1097-0266(199902)20:2%3C195::AID-SMJ13%3E3.0.CO;2-7
Jeong, S., Hsiao, Y. Y., Song, J. H., Kim, J., & Bae, S. H. (2016). The moderating role of transformational leadership on work engagement: The influences of professionalism and openness to change. Human Resource Development Quarterly, 27(4), 489-516. https://doi.org/http://dx.doi.org/10.1002/hrdq.21265.
Jung, D. D., Wu, A., & Chow, C. W. (2008). Towards understanding the direct and indirect effects of CEOs' transformational leadership on firm innovation. The leadership quarterly, 19(5), 582-594. https://doi.org/http://dx.doi.org/10.2139/ssrn.921300
Keeble‐Ramsay, D., & Armitage, A. (2010). Total quality management meets human resource management: perceptions of the shift towards high performance working. The TQM Journal, 22(1), 5-25. https://doi.org/http://dx.doi.org/10.1108/17542731011009595
Khaki, G. (2020). Research Methodology (with dissertation approach) (20 ed.). Fuzhan Press. (In Persian)
Khedrvaisi, H., Rangriz, H., Salavati, A., & Soltanpanah, H. (2019). Identifying and Investigating the Effect of Effective Components on Transformational Organizational Performance. Innovation Management in Defense Organizations, 2(1), 135-158. (In Persian)
Kim, M., Beehr, T. A., & Prewett, M. S. (2018). Employee responses to empowering leadership: A meta-analysis. Journal of Leadership & Organizational Studies, 25(3), 257-276. https://doi.org/http://dx.doi.org/10.1177/1548051817750538
Mavrinac, M. A. (2005). Transformational leadership: Peer mentoring as a values-based learning process. portal: Libraries and the Academy, 5(3), 391-404. https://doi.org/http://dx.doi.org/10.1353/pla.2005.0037
Mirkamali, S. M., & Choupani, H. (2011). An Investigation of the relationship between transformational leadership and organizational innovation in insurance company. Iranian Journal of Insurance Research, 26(3), 155-181. (In Persian)
Mohammad Hosseini, Y., & Ghazipour, T. (2018). Transformational Leadership Style and Change Management (1 ed.). Peyke Moshaver Press. (In Persian)
Mortazavi, S., & Nazemi, S. (2005). An empirical study of the relationship between emotional intelligence and leadership style (transformational-transactional). Management Research in Iran, 9(20), 167-190. http://mri.modares.ac.ir/article-19-6621-en.html (In Persian)
Mullah, R., & Ghojavand, A. (2015). Role-Playing of Strategic Leadership in Improving organizational performance (Case Study: Electric Power Industry of Isfahan Province). The Journal of Modern Thoughts in Education, 10(4), 117-130. https://jmte.riau.ac.ir/article_894.html?lang=en (In Persian)
Özer, F., & Tınaztepe, C. (2014). Effect of strategic leadership styles on firm performance: A study in a Turkish SME. Procedia-Social and Behavioral Sciences, 150, 778-784. http://dx.doi.org/10.1016/j.sbspro.2014.09.059
Pourdehndeh, A. (2020). Transformational Leadership Second National Conference on New Ideas and Applied Research in Humanities, Rasht. https://civilica.com/doc/1035212/ (In Persian)
Samad, S. (2012). The influence of innovation and transformational leadership on organizational performance. Procedia-Social and Behavioral Sciences, 57, 486-493. https://doi.org/http://dx.doi.org/10.1016/j.sbspro.2012.09.1215
Sarmad, Z., Bazargan Herandi, A., & Hejazi, E. (2019). Research Methods in Behavioral Sciences (32 ed.). Agah Press. (In Persian)
Sing, S. K. (2008). Role of leadership in knowledge management: a study Journal of Knowledge Management 12(4), 3-15. https://doi.org/10.1108/13673270810884219
Singh, S. K., & Singh, A. P. (2019). Interplay of organizational justice, psychological empowerment, organizational citizenship behavior, and job satisfaction in the context of circular economy. Management Decision, 57(4), 937-952. http://dx.doi.org/10.1108/MD-09-2018-0966
Thompson, M., & Heron, P. (2005). The difference a manager can make: organizational justice and knowledge worker commitment. The International Journal of Human Resource Management. 16(3), 383-404. http://dx.doi.org/10.1080/0958519042000339561
Yaghobi, N. M., Shukuhy, J., Raiisi, H., & Sayydi, F. (2016). Influences of ladership styles on organizational performance with mediating role of organizational learning and innovation. Transformation Management Journal, 7(14), 32-56. (In Persian)
Zali, M. R. (2004). Transformational Leadership. Journal of the Faculty of Humantimies 13(52), 175-197. http://noo.rs/wVtzv
Zomorodian, A. (2020). Transformation Management (New Strategies, Applications and Models) (13 ed.). Industrial Management Institute Press. (In Persian)
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Akbari, M., allah Karnema, A., & Molla Hossaini, A. (2013). The Study of the Relation between Transformational Leadership and Organization Performance (Sampling: Government Organizations of Kerman Province). Police Organizational Development, 10 (45), 63-86. http://pod.jrl.police.ir/article_9280_7988e1f4dc4bb8b72ff00b713a6c256a.pdf (In Persian)
Argyris, C. (2010). Organizational traps: Leadership, culture, organizational design (M. Kazemi Movahed, Trans.; 15 ed.). Oxford University Press
Avolio, B., Bass, B., & Jung, D. (2004). MLQ: Multifactor leadership questionnaire. Redwood City. CA: Mind Garden.
Becker, B. E., & Huselid, M. A. (2006). Strategic human resources management: where do we go from here? Journal of management, 32(6), 898-925. https://doi.org/http://dx.doi.org/10.1177/0149206306293668.
Çekmecelioğlu, H. G., & Özbağ, G. K. (2019). The Impact Transformational Leadership in Developing Psychological Empowerment. International Journal of Humanities and Social Science (IJHSS), 9(8), 136-144. http://dx.doi.org/10.30845/ijhss.v9n8p1
Cui, W., Shen, H., Yan, Y. Q., & Shi-zheng, H. (2020). The Impact of E-service quality in P2P accommodations on Customer Behavior Intention: Evidence from Chinese Customers. Revista Argentina de Clínica Psicológica, 29(5), 296-319. https://doi.org/dx.doi.org/10.24205/03276716.2020.1031
Dehghani Ghahnavieh, A., & Naderi Bani, M. (2015). A Study of the Role of Transformational Leadership in Innovation and Organizational Performance Fourth International Conference on Accounting and Management and First Conference on Entrepreneurship and Open Innovation, Tehran. https://civilica.com/doc/476274 (In Persian)
Elenkov, D. S. (2002). Effects of leadership on organizational performance in Russian companies. Journal of business research. 55(6), 467-480.
Fang, N., Yuli, Z., & Hongzhi, X. (2009 ). Acquisition of resources, formal organization and entrepreneurial orientation of new ventures. Journal of Chinese Entrepreneurship, 1 (1), 40-52. http://dx.doi.org/10.1108/17561390910916877
Farhadi Nejad, M., Alikarami, S., & Abdi, M. (2019). Examining the Impact of Green Transformational Leadership on Green Behaviors Considering the Mediating Role of Environmental Attitudes. Transformation Management Journal, 11(2), 29-52. https://dx.doi.org/10.22067/pmt.v11i2.74034 (In Persian)
Ferrell, O. C., & Fraedrich, J. (2016). Business ethics: Ethical decision making & cases (10 ed.). Cengage learning.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50. https://doi.org/https://doi.org/10.2307/3151312
García‐Morales, V. J., Lloréns‐Montes, F. J., & Verdú‐Jover, A. J. (2008). The effects of transformational leadership on organizational performance through knowledge and innovation. British journal of management, 19(4), 299-319. https://doi.org/http://dx.doi.org/10.1111/j.1467-8551.2007.00547.x
Golmohammadi, E., Kafcheh, P., & Soltanpanah, H. (2013). Leadership Styles and Strategic Thinking in Organizational Level. Journal of Strategic Management Studies, 4(15), 93-114. http://www.smsjournal.ir/article_88789.html?lang=en (In Persian)
Gumusluoglu, T., & ILsev, A. (2009) Roles of internal & external support for innovation leadership and organizational innovation. The Journal of Product Innovation Management, 26(3), 264-277. https://doi.org/doi.org/10.1111/j.1540-5885.2009.00657.x.
Hancott, D. E. (2005). The relationship between transformational leadership and organizational performance in the largest public companies in Canada. Capella University.
HEJAZI, R., & RAMSHEH, M. (2013). EXPLORING THE RELATIONSHIPS BETWEEN STRATEGY, INNOVATION, AND MANAGEMENT CONTROL SYSTEMS. 2(7), 61-74. https://jmaak.srbiau.ac.ir/m/article_7500.html?lang=en
Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic management journal, 20(2), 195-204. https://doi.org/https://doi.org/10.1002/(SICI)1097-0266(199902)20:2%3C195::AID-SMJ13%3E3.0.CO;2-7
Jeong, S., Hsiao, Y. Y., Song, J. H., Kim, J., & Bae, S. H. (2016). The moderating role of transformational leadership on work engagement: The influences of professionalism and openness to change. Human Resource Development Quarterly, 27(4), 489-516. https://doi.org/http://dx.doi.org/10.1002/hrdq.21265.
Jung, D. D., Wu, A., & Chow, C. W. (2008). Towards understanding the direct and indirect effects of CEOs' transformational leadership on firm innovation. The leadership quarterly, 19(5), 582-594. https://doi.org/http://dx.doi.org/10.2139/ssrn.921300
Keeble‐Ramsay, D., & Armitage, A. (2010). Total quality management meets human resource management: perceptions of the shift towards high performance working. The TQM Journal, 22(1), 5-25. https://doi.org/http://dx.doi.org/10.1108/17542731011009595
Khaki, G. (2020). Research Methodology (with dissertation approach) (20 ed.). Fuzhan Press. (In Persian)
Khedrvaisi, H., Rangriz, H., Salavati, A., & Soltanpanah, H. (2019). Identifying and Investigating the Effect of Effective Components on Transformational Organizational Performance. Innovation Management in Defense Organizations, 2(1), 135-158. (In Persian)
Kim, M., Beehr, T. A., & Prewett, M. S. (2018). Employee responses to empowering leadership: A meta-analysis. Journal of Leadership & Organizational Studies, 25(3), 257-276. https://doi.org/http://dx.doi.org/10.1177/1548051817750538
Mavrinac, M. A. (2005). Transformational leadership: Peer mentoring as a values-based learning process. portal: Libraries and the Academy, 5(3), 391-404. https://doi.org/http://dx.doi.org/10.1353/pla.2005.0037
Mirkamali, S. M., & Choupani, H. (2011). An Investigation of the relationship between transformational leadership and organizational innovation in insurance company. Iranian Journal of Insurance Research, 26(3), 155-181. (In Persian)
Mohammad Hosseini, Y., & Ghazipour, T. (2018). Transformational Leadership Style and Change Management (1 ed.). Peyke Moshaver Press. (In Persian)
Mortazavi, S., & Nazemi, S. (2005). An empirical study of the relationship between emotional intelligence and leadership style (transformational-transactional). Management Research in Iran, 9(20), 167-190. http://mri.modares.ac.ir/article-19-6621-en.html (In Persian)
Mullah, R., & Ghojavand, A. (2015). Role-Playing of Strategic Leadership in Improving organizational performance (Case Study: Electric Power Industry of Isfahan Province). The Journal of Modern Thoughts in Education, 10(4), 117-130. https://jmte.riau.ac.ir/article_894.html?lang=en (In Persian)
Özer, F., & Tınaztepe, C. (2014). Effect of strategic leadership styles on firm performance: A study in a Turkish SME. Procedia-Social and Behavioral Sciences, 150, 778-784. http://dx.doi.org/10.1016/j.sbspro.2014.09.059
Pourdehndeh, A. (2020). Transformational Leadership Second National Conference on New Ideas and Applied Research in Humanities, Rasht. https://civilica.com/doc/1035212/ (In Persian)
Samad, S. (2012). The influence of innovation and transformational leadership on organizational performance. Procedia-Social and Behavioral Sciences, 57, 486-493. https://doi.org/http://dx.doi.org/10.1016/j.sbspro.2012.09.1215
Sarmad, Z., Bazargan Herandi, A., & Hejazi, E. (2019). Research Methods in Behavioral Sciences (32 ed.). Agah Press. (In Persian)
Sing, S. K. (2008). Role of leadership in knowledge management: a study Journal of Knowledge Management 12(4), 3-15. https://doi.org/10.1108/13673270810884219
Singh, S. K., & Singh, A. P. (2019). Interplay of organizational justice, psychological empowerment, organizational citizenship behavior, and job satisfaction in the context of circular economy. Management Decision, 57(4), 937-952. http://dx.doi.org/10.1108/MD-09-2018-0966
Thompson, M., & Heron, P. (2005). The difference a manager can make: organizational justice and knowledge worker commitment. The International Journal of Human Resource Management. 16(3), 383-404. http://dx.doi.org/10.1080/0958519042000339561
Yaghobi, N. M., Shukuhy, J., Raiisi, H., & Sayydi, F. (2016). Influences of ladership styles on organizational performance with mediating role of organizational learning and innovation. Transformation Management Journal, 7(14), 32-56. (In Persian)
Zali, M. R. (2004). Transformational Leadership. Journal of the Faculty of Humantimies 13(52), 175-197. http://noo.rs/wVtzv
Zomorodian, A. (2020). Transformation Management (New Strategies, Applications and Models) (13 ed.). Industrial Management Institute Press. (In Persian)
