Transformational leadership and post-acquisition performance in transitional economies

Purpose – The purpose of this paper is to explore the relationships between transformational leadership and post-acquisition performance, introducing into the analysis the mediating effect of employee attitudes toward changes, in the specific context of a transitional economy. Design/methodology/approach – The data were collected from 208 employees (including 91 managers) from ten acquired companies in Serbia. Using exploratory factor analysis, two dimensions of transformational leadership were identified in the context of a transitional economy: the first one refers to inspiring and stimulating the employees, and the second dimension refers to responding to employee problems. Multiple regression analysis was used to test the research hypotheses. Findings – The results of the analysis indicate that inspiring and stimulating employees has an indirect impact on post-acquisition performance through the mediating effect of employee attitudes toward changes, whereas responding to employee problems has both dir...

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