Leadership style and organizational innovativeness drive motor carriers toward sustained performance

Purpose – The purpose of this study is to examine the complex relationships between transformational leadership, organizational innovativeness, and motor carrier performance.Design/methodology/approach – A covariance‐based structural equation model was developed, tested and validated to explain the effect of leadership style and innovativeness on motor carrier performance. The authors’ hypotheses were tested using responses from 158 North American motor carriers.Findings – The results support a direct as well as an indirect positive relationship between transformational leadership and organizational performance. Through the theoretical lens of dynamic capabilities theory, the results indicate that leaders motivate organizational change based on their own idiosyncrasies and perceptions of the environment.Research limitations/implications – This research was limited by its focus on the motor carrier industry and may limit the generalizability of the findings. While the sample of motor carriers was selected ...

[1]  E. Rogers.  Diffusion of Innovations , 1962 .

[2]  J. Hair.  Multivariate data analysis , 1972 .

[3]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[4]  L. Phillips.  Assessing Measurement Error in Key Informant Reports: A Methodological Note on Organizational Analysis in Marketing , 1981 .

[5]  B. Bass.  LEADERSHIP AND PERFORMANCE BEYOND EXPECTATIONS , 1985 .

[6]  P. M. Podsakoff,et al.  Self-Reports in Organizational Research: Problems and Prospects , 1986 .

[7]  James C. Anderson,et al.  STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH , 1988 .

[8]  A. Thomas.  Does leadership make a difference to organizational performance , 1988 .

[9]  Peter J. Frost,et al.  A laboratory study of charismatic leadership. , 1989 .

[10]  James Campbell Quick,et al.  Crafting an organizational culture: Herb's hand at Soutwest Airlines , 1992 .

[11]  Jane M. Howell,et al.  Transformational leadership, transactional leadership, locus of control, and support for innovation: key predictors of consolidated-business-unit performance , 1993 .

[12]  J. Farley,et al.  Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis , 1993 .

[13]  M. Arthur,et al.  The Motivational Effects of Charismatic Leadership: A Self-Concept Based Theory , 1993 .

[14]  B. Bass,et al.  Transformational Leadership And Organizational Culture , 1993 .

[15]  Richard M. Steers,et al.  The effects of transformational leadership on teacher attitudes and student performance in Singapore , 1995 .

[16]  Rick D. Hackett,et al.  Further assessments of Bass's (1985) conceptualization of transactional and transformational leadership. , 1995 .

[17]  Kevin B. Lowe,et al.  Effectiveness correlates of transformational and transactional leadership: A meta-analytic review of the mlq literature , 1996 .

[18]  R. Trent.  Understanding and Evaluating Cross-Functional Sourcing Team Leadership , 1996 .

[19]  E. Kelloway,et al.  Effects of Transformational Leadership Training on Attitudinal and Financial Outcomes: A Field Experiment , 1996 .

[20]  M. Taccetta-Chapnick.  Transformational leadership. , 1996, Nursing administration quarterly.

[21]  D. Teece,et al.  DYNAMIC CAPABILITIES AND STRATEGIC MANAGEMENT , 1997 .

[22]  Jin K. Han,et al.  Market Orientation and Organizational Performance: Is Innovation a Missing Link? , 1998 .

[23]  Wynne W. Chin.  The partial least squares approach for structural equation modeling. , 1998 .

[24]  G. Hult,et al.  Innovation, Market Orientation, and Organizational Learning: An Integration and Empirical Examination , 1998 .

[25]  Rex B. Kline,et al.  Principles and Practice of Structural Equation Modeling , 1998 .

[26]  G. Yukl.  An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. , 1999 .

[27]  Cornelia Dröge,et al.  THE EFFECT OF JUST-IN-TIME WITH CUSTOMERS ON ORGANIZATIONAL DESIGN AND PERFORMANCE , 1999 .

[28]  Marc Wouters,et al.  Identification of critical operational performance measures— a research note on a benchmarking study in the transportation and distribution sector , 1999 .

[29]  P. Bentler,et al.  Cutoff criteria for fit indexes in covariance structure analysis : Conventional criteria versus new alternatives , 1999 .

[30]  Kathleen M. Eisenhardt,et al.  DYNAMIC CAPABILITIES, WHAT ARE THEY? , 2000 .

[31]  T. Tremble,et al.  Transformational Leadership Effects at Different Levels of the Army , 2000 .

[32]  F. Graetz.  Strategic change leadership , 2000 .

[33]  L. Mann,et al.  A Short Measure of Transformational Leadership , 2000 .

[34]  R. N. Kanungo,et al.  Charismatic leadership and follower effects , 2000 .

[35]  M. Lindell,et al.  Accounting for common method variance in cross-sectional research designs. , 2001, The Journal of applied psychology.

[36]  Ralph E. Viator.  The Relevance of Transformational Leadership to Nontraditional Accounting Services: Information Systems Assurance and Business Consulting , 2001, J. Inf. Syst..

[37]  Michael H. Belzer,et al.  Technological innovation and the trucking industry: Information revolution and the effect on the work process , 2002 .

[38]  W. D. Murry,et al.  A Longitudinal Model of the Effects of Team Leadership and Group Potency on Group Performance , 2002 .

[39]  M. Mumford,et al.  Leading creative people: Orchestrating expertise and relationships , 2002 .

[40]  A. Rangaswamy,et al.  Technological Opportunism and Radical Technology Adoption: An Application to E-Business , 2002 .

[41]  Terry L. Esper,et al.  The electronic supply chain: Its impact on the current and future structure of strategic alliances, partnerships and logistics leadership , 2002 .

[42]  Detelin S. Elenkov.  Effects of leadership on organizational performance in Russian companies , 2002 .

[43]  Stanley E. Griffis,et al.  WEB‐BASED AND MAIL SURVEYS: A COMPARISON OF RESPONSE, DATA, AND COST , 2003 .

[44]  B. Bass,et al.  Predicting unit performance by assessing transformational and transactional leadership. , 2003, The Journal of applied psychology.

[45]  D. Jung,et al.  The role of transformational leadership in enhancing organizational innovation: Hypotheses and some preliminary findings , 2003 .

[46]  Crystal L. Hoyt,et al.  Transformational and Transactional Leadership in Virtual and Physical Environments , 2003 .

[47]  Diether Gebert,et al.  The Risks of Autonomy: Empirical Evidence for the Necessity of a Balance Management in Promoting Organizational Innovativeness , 2003 .

[48]  K. E. Barron,et al.  Testing Moderator and Mediator Effects in Counseling Psychology Research. , 2004 .

[49]  Kristina Jaskyte,et al.  Transformational Leadership, Organizational Culture, and Innovativeness in Nonprofit Organizations , 2004 .

[50]  Ronald F. Piccolo,et al.  Transformational and transactional leadership: a meta-analytic test of their relative validity. , 2004, The Journal of applied psychology.

[51]  Bruce J. Avolio,et al.  Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/job.283 Transformational leadership and , 2022 .

[52]  R. Voola,et al.  Emotional intelligence and competitive advantage: examining the relationship from a resource‐based view , 2004 .

[53]  Kenneth W. Green,et al.  Developing optimism to improve performance: an approach for the manufacturing sector , 2004, Ind. Manag. Data Syst..

[54]  G. Hult,et al.  Innovativeness: Its antecedents and impact on business performance , 2004 .

[55]  Fred O. Walumbwa,et al.  The role of collective efficacy in the relations between transformational leadership and work outcomes , 2004 .

[56]  Detmar W. Straub,et al.  A Practical Guide To Factorial Validity Using PLS-Graph: Tutorial And Annotated Example , 2005, Commun. Assoc. Inf. Syst..

[57]  V. Pucik,et al.  Relationship between innovativeness, quality, growth, profitability, and market value , 2005 .

[58]  K. W. Green,et al.  Using a just-in-time selling strategy to strengthen supply chain linkages , 2005 .

[59]  William D. Spangler,et al.  CEO transformational leadership and organizational outcomes: The mediating role of human–capital-enhancing human resource management , 2005 .

[60]  L. Fredendall,et al.  Purchasing's Internal Service Performance: Critical External and Internal Determinants , 2005 .

[61]  Susan K. Lippert,et al.  Utilization of information technology: examining cognitive and experiential factors of post-adoption behavior , 2005, IEEE Transactions on Engineering Management.

[62]  T. Judge,et al.  Making Sense of Motivational Leadership: The Trail from Transformational Leaders to Motivated Followers , 2006 .

[63]  N. Ashkanasy,et al.  The Impact of Leadership and Change Management Strategy on Organizational Culture and Individual Acceptance of Change During a Merger , 2006 .

[64]  H. Keskin.  Market Orientation, Learning Orientation and Innovation Capabilities in SMEs: An extended Model , 2006 .

[65]  Naresh K. Malhotra,et al.  Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research , 2006, Manag. Sci..

[66]  N. Turner,et al.  Apologies and Transformational Leadership , 2006 .

[67]  Z. Dörnyei,et al.  A New Approach to Assessing Strategic Learning: The Case of Self-Regulation in Vocabulary Acquisition , 2006 .

[68]  Ronald F. Piccolo,et al.  Transformational Leadership and Job Behaviors: The Mediating Role of Core Job Characteristics. , 2006 .

[69]  Louise A. Nemanich,et al.  Transformational leadership in an acquisition: A field study of employees , 2007 .

[70]  P. Barrett.  Structural equation modelling : Adjudging model fit , 2007 .

[71]  S. Rogelberg,et al.  Introduction Understanding and Dealing With Organizational Survey Nonresponse , 2007 .

[72]  S. Boerner,et al.  Follower Behavior and Organizational Performance: The Impact of Transformational Leaders , 2007 .

[73]  Brian R. Chabowski,et al.  Leadership, the buying center, and supply chain performance: A study of linked users, buyers, and suppliers , 2007 .

[74]  Margaret C. McKee,et al.  Transformational leadership and psychological well-being: the mediating role of meaningful work. , 2007, Journal of occupational health psychology.

[75]  G. Hooley,et al.  Customer orientation and innovativeness: Differing roles in New and Old Europe , 2008 .

[76]  Jean S. K. Lee,et al.  Effects of leadership and leader‐member exchange on innovativeness , 2008 .

[77]  E. Hansen,et al.  Assessing innovativeness in the North American softwood sawmilling industry using three methods , 2008 .

[78]  K. Lai,et al.  Relational stability and alliance performance in supply chain , 2008 .

[79]  R. Keller,et al.  Transformational Leadership and the Performance of Research and Development Project Groups , 1992, IEEE Engineering Management Review.

[80]  Elias G. Carayannis,et al.  Measuring firm innovativeness: towards a composite innovation index built on firm innovative posture, propensity and performance attributes , 2008 .

[81]  Joseph C. Santora,et al.  Building a Climate for Innovation Through Transformational Leadership and Organizational Culture , 2008 .

[82]  D. van Knippenberg,et al.  Transformational leadership and team innovation: integrating team climate principles. , 2008, The Journal of applied psychology.

[83]  R. Friedmann,et al.  Market orientation, knowledge-related resources and firm performance , 2008 .

[84]  K. Bollen,et al.  An Empirical Evaluation of the Use of Fixed Cutoff Points in RMSEA Test Statistic in Structural Equation Models , 2008, Sociological methods & research.

[85]  Phillip L. Carter,et al.  SUPPLIER INNOVATIVENESS AND THE ROLE OF INTERORGANIZATIONAL LEARNING IN ENHANCING MANUFACTURER CAPABILITIES , 2008 .

[86]  Antonio J. Verdú-Jover,et al.  The Effects of Transformational Leadership on Organizational Performance through Knowledge and Innovation , 2008 .

[87]  Anne Nederveen Pieterse,et al.  Transformational and transactional leadership and innovative behavior : The moderating role of psychological empowerment , 2009 .

[88]  Mark Pagell,et al.  How Plant Managers' Experiences and Attitudes Toward Sustainability Relate to Operational Performance , 2009 .

[89]  R. Mitchell,et al.  A theoretical model of transformational leadership's role in diverse teams , 2009 .

[90]  Scott J. Grawe.  Logistics innovation: a literature‐based conceptual framework , 2009 .

[91]  L. Gumusluoglu,et al.  Transformational Leadership, Creativity, and Organizational Innovation , 2009 .

[92]  E. Hartmann,et al.  SUSTAINABLE GLOBAL SUPPLIER MANAGEMENT: THE ROLE OF DYNAMIC CAPABILITIES IN ACHIEVING COMPETITIVE ADVANTAGE , 2010 .

[93]  W. Reinartz,et al.  An Empirical Comparison of the Efficacy of Covariance-Based and Variance-Based SEM , 2009 .

[94]  Matthew A. Douglas,et al.  A multi‐dimensional construct of commercial motor vehicle operators' attitudes toward safety regulations , 2009 .

[95]  K. Makambi,et al.  An assessment of the CES-D scale factor structure in black women: The Black Women's Health Study , 2009, Psychiatry Research.

[96]  Véronique Ambrosini,et al.  Dynamic Capabilities: An Exploration of How Firms Renew Their Resource Base , 2009 .

[97]  John T. Mentzer,et al.  THE ROLE OF FOLLOWERS IN SUPPLY CHAINS , 2009 .

[98]  G. Mohr,et al.  Transformational Leadership, Team Goal Fulfillment, and Follower Work Satisfaction , 2009 .

[99]  Gaby Odekerken-Schröder,et al.  Using PLS path modeling for assessing hierarchial construct models: guidelines and impirical illustration , 2009 .

[100]  S. Zahra,et al.  The Evolving Firm: How Dynamic and Operating Capabilities Interact to Enable Entrepreneurship , 2009 .

[101]  Véronique Ambrosini,et al.  What are Dynamic Capabilities and are They a Useful Construct in Strategic Management? , 2009 .

[102]  The art of supply change management , 2009 .

[103]  Pierre J. Richard,et al.  Measuring Organizational Performance: Towards Methodological Best Practice , 2009 .

[104]  V. Narayanan,et al.  Building Organizational and Scientific Platforms in the Pharmaceutical Industry: A Process Perspective on the Development of Dynamic Capabilities , 2009 .

[105]  Marjorie A. Lyles,et al.  Dynamic Capabilities: Current Debates and Future Directions , 2009 .

[106]  Stephan M. Wagner,et al.  HANDLING NONRESPONSE IN LOGISTICS RESEARCH , 2010 .

[107]  Jaehoon Rhee,et al.  Drivers of innovativeness and performance for innovative SMEs in South Korea: Mediation of learning orientation , 2010 .

[108]  John T. Mentzer,et al.  LOGISTICS PERFORMANCE: EFFICIENCY, EFFECTIVENESS, AND DIFFERENTIATION , 2010 .

[109]  N. Schutte,et al.  Increasing transformational leadership through enhancing self‐efficacy , 2010 .

[110]  Victor E. Sower,et al.  Impact of RFID technology utilization on operational performance , 2010 .

[111]  Viara Popova,et al.  Modeling organizational performance indicators , 2010, Inf. Syst..

[112]  Peng Liu,et al.  Allocating Collaborative Profit in Less-than-Truckload Carrier Alliance , 2010 .

[113]  Jasmin A Tiro,et al.  Construct Validity of a Mammography Processes of Change Scale and Invariance by Stage of Change , 2010, Journal of health psychology.

[114]  T. Corsi,et al.  The Relationship between Motor Carrier Financial Performance and Safety Performance , 2010, Transportation Journal.

[115]  Regis Terpend,et al.  THE PURCHASING‐LOGISTICS INTERFACE: A “SCOPE OF RESPONSIBILITY” TAXONOMY , 2010 .

[116]  C. Chow,et al.  Chinese CEOs' Leadership Styles and Firm Performance , 2010 .

[117]  Fuming Wang,et al.  Effect of leadership style on organizational performance as viewed from human resource management strategy , 2010 .

[118]  Ing-Long Wu,et al.  Examining the diffusion of electronic supply chain management with external antecedents and firm performance: A multi-stage analysis , 2010, Decis. Support Syst..

[119]  V. Sambamurthy,et al.  Supply chain information technologies and organisational initiatives: complementary versus independent effects on agility and firm performance , 2010 .

[120]  Kee-hung Lai,et al.  An empirical study of transformational leadership, team performance and service quality in retail banks , 2011 .

[121]  Fenwick Feng Jing,et al.  Missing Links In Understanding The Relationship Between Leadership And Organizational Performance , 2011 .

[122]  Paul A. Pavlou,et al.  Understanding the Elusive Black Box of Dynamic Capabilities , 2011, Decis. Sci..

[123]  Paul P. Tallon,et al.  Competing Perspectives on the Link Between Strategic Information Technology Alignment and Organizational Agility: Insights from a Mediation Model , 2011, MIS Q..

[124]  Straub,et al.  Editor's Comments: An Update and Extension to SEM Guidelines for Administrative and Social Science Research , 2011 .

[125]  Detmar W. Straub,et al.  An Update and Extension to SEM Guidelines for Admnistrative and Social Science Research , 2011 .

[126]  Claartje J. Vinkenburg,et al.  An exploration of stereotypical beliefs about leadership styles: Is transformational leadership a route to women's promotion? , 2011 .

[127]  A. Azadegan.  BENEFITING FROM SUPPLIER OPERATIONAL INNOVATIVENESS: THE INFLUENCE OF SUPPLIER EVALUATIONS AND ABSORPTIVE CAPACITY , 2011 .

[128]  Stanley E. Fawcett,et al.  Information Technology as an Enabler of Supply Chain Collaboration: A Dynamic-Capabilities Perspective , 2011 .

[129]  R. A. Inman,et al.  Agile manufacturing: Relation to JIT, operational performance and firm performance , 2011 .

[130]  Marko Sarstedt,et al.  PLS-SEM: Indeed a Silver Bullet , 2011 .

[131]  Richard L. Priem,et al.  A Demand‐side Perspective on Supply Chain Management , 2012 .

[132]  Benjamin T. Hazen,et al.  Supply chain innovation diffusion: going beyond adoption , 2012 .

[133]  Malte Brettel,et al.  CEO experience as micro‐level origin of dynamic capabilities , 2012 .

[134]  Donna F. Davis,et al.  Grounding Supply Chain Management in Resource‐Advantage Theory: In Defense of a Resource‐Based View of the Firm , 2012 .

[135]  Marko Sarstedt,et al.  An assessment of the use of partial least squares structural equation modeling in marketing research , 2012 .

[136]  J. Barney.  Purchasing, Supply Chain Management and Sustained Competitive Advantage: The Relevance of Resource-based Theory , 2012 .

[137]  Malte Brettel,et al.  A Coalitional Perspective on the Role of the R&D Department within the Organization , 2012 .

[138]  Amydee M. Fawcett,et al.  PEEKING INSIDE THE BLACK BOX: TOWARD AN UNDERSTANDING OF SUPPLY CHAIN COLLABORATION DYNAMICS , 2012 .