Leadership variables and business performance

mediating and interaction effects

Fenwick Feng Jing, Gayle C. Avery*, Harald Bergsteiner

*Corresponding author for this work

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

Despite evidence that emotion-based leadership enhances firm performance, little is known about the variables mediating those effects. Adopting a multistakeholder, multimeasure approach, we examined the effects of three mediators (communicating/sharing a vision, organizational climate, and leader–follower trust) on the leadership–performance relationship and their interactive effects on performance in small professional service firms. Using four employee-perceived leadership paradigms (classical, transactional, visionary, and organic), we measured staff and customer satisfaction and financial performance. Findings confirm that the effects of the mediating variables on all performance measures vary with the prevailing leadership paradigm, and interactions between all variables strengthen their effects on performance.

Original languageEnglish
Pages (from-to)80-97
Number of pages18
JournalJournal of Leadership and Organizational Studies
Volume27
Issue number1
Early online date24 Jan 2019
DOIs
Publication statusPublished - 1 Feb 2020

Keywords

  • leadership style
  • organizational climate
  • performance
  • trust
  • vision

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