A model of transformational leadership and organisational performance in state-owned enterprises in Zimbabwe

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Date
2020
Authors
Badarai, Edson
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Publisher
University of the Free State
Abstract
A lack of leadership skills was cited as one of the reasons for poor performance in Zimbabwe’s state-owned enterprises (SOEs). In response to the highlighted leadership skills gap and poor performance in the state-owned enterprises, the present study sought to address this by developing a transformational leadership and organisational performance model. In pursuit of this aim, specific objectives set at the onset are: to develop a conceptual leadership and an organisational performance model for state-owned enterprises in Zimbabwe, to theoretically explain the relationships between variables in the proposed transformational leadership and organisational performance model using previous literature, and to determine the predictive validity of the proposed transformational leadership and organisational performance model in State-Owned Enterprises in Zimbabwe. A quantitative research approach was selected, with predictive research design being adopted. The study made use of four standard questionnaires, namely the Multifactor Leadership Questionnaire-5X (MLQ-5X) to assess transformational leadership, the Influence Behaviour Questionnaire (IBQ-G) to assess proactive influence tactics; the Leader-Member-Exchange Questionnaire (LMX-7) to assess the quality of leader follower relationships; and finally the Competing Values Questionnaire (CVQ) to assess organisational performance. The data was collected from managerial and nonmanagerial staff members representing 12 State Owned Enterprises (SOEs), as well as government officials from line Ministries in Zimbabwe using these questionnaires. A total of 302 respondents participated in the study, representing a 78% response rate. All four instruments used in the study demonstrated good reliability and validity. In the analysis of the data, descriptive statistics and inferential statistics are provided from SPSS and SmartPLS. The analysis was in the form of correlations, stepwise multiple regression and structural equation modelling. An observation from the findings is that only two of the independent variables are direct significant predictors of organisational performance; these are transformational leadership and soft proactive influence tactics. Transformational leadership explained 40% of the variance in organisational performance, while soft proactive influence tactics contributed 3.5% of organisational performance. Page v Meanwhile, the relationship between transformational leadership and organisational performance proved to be a complex one, beyond the direct relationship. In this regard, transformational leadership demonstrated that it could influence organisational performance through soft proactive influence tactics and the quality of leader follower relationships. Overall, the combined independent variables in the theoretical model explained 47% of the variance in organisational performance, a variance above that of individual independent variables on organisational performance. As anticipated, the findings of the study mostly concurred with previous studies, except for the path transformational leadership → quality of leader follower relationships that was statistically non-significant. Since the relationship between transformational leaders and the quality of leader follower relationships was not significant, it might be argued that soft proactive influence tactics probably mediated this relationship. In other words, a transformational leader could not directly influence the quality of leader follower relationships, but only through soft proactive influence tactics. Factoring good reliability and validity of instruments into the study, the statistically significant paths between independent variables and organisational performance, and the resultant contribution of 47% in organisational performance demonstrated the predictive validity of the theoretical model. These findings imply that theories of transformational leadership, proactive influence tactics, and the quality of leader follower relationships can be integrated to positively and significantly influence organisational performance in SOEs in Zimbabwe. This could be explained by the theoretical links between the variables in the model. In explaining the direct relationships, transformational leadership encourages followers and motivates and inspires followers to pursue higher goals, and this helps followers to improve organisational performance. Soft influence tactics, for example, rational persuasion, use reason to encourage follower commitment and persuade followers to carry out tasks. Likewise, inspirational appeals increase follower confidence in carrying out a task, thereby increasing organisational performance. This is attributable to the fact that the inspirational appeals ignite enthusiasm in followers by appealing to values and ideals. In summary, the theoretical explanations supported the direct relationship between transformational leadership and organisational performance, as well as the relationship between proactive influence tactics and organisational performance. Page vi Regarding the more complex and indirect relationships; transformational leadership was also linked to soft proactive influence tactics (sPITS), for instance, inspirational appeals that include the leader’s requests based on follower values and ideals. These requests ignite an emotional response from the followers and create follower enthusiasm to carry out tasks or requests. Meanwhile, transformational leader’s inspirational motivation is where the leader motivates and inspires followers to reach towards a common vision and uses emotional persuasion to gain followers’ acceptance and commitment to the organisational goals. Thus, inspirational appeals resemble transformational leadership’s inspirational motivation, which explains the predictive relationship between transformational leadership and soft proactive influence tactics. The link between soft influence tactics and the quality of leader follower relationships is explained by considering that with consultation influence tactics, followers participate in tasks and provide ideas while the leader listens. Such a process helps in building mutual trust, improving follower commitment, and developing good quality relationships between the leader and followers. This forms part of the explanation for the predictive relationship between soft proactive influence tactics and the quality of leader follower relationships. Furthermore, in high-quality leader follower relationships, the leaders support followers, provide necessary resources and improve communication with followers. Consequently, followers experience job satisfaction, feel empowered, and reciprocate by working hard to achieve set goals and improve organisational performance. The linkages illustrated above demonstrate how transformational leadership can influence organisational performance through proactive influence tactics and the quality of leader follower relationships. Theoretically, the study added value by providing a new comprehensive framework beyond dual relationships that exist between variables. Moreover, the present study has empirical value as it provides critical evidence from the public sector in a developing South Saharan country. Meanwhile, the practical value includes potential utilisation of the present model to influence organisational performance in state-owned enterprises in Zimbabwe positively. Some of the noted limitations relate to the study being a cross-sectional one. In the future, longitudinal studies would also help to assess if transformational leaders Page vii consistently use sPITS on followers over time. To add on to the limitations, the present study focused on the public sector only. Future studies could also look at other organisational settings. The recommendations focus on the expansion of the present model to include other variables such as innovation and how this influences organisational performance. In addition, future research could include studies in other organisations beyond the public sector such as the private sector and not for profit organisations; the adoption of the theoretical model for use in state-owned enterprises; designing training programmes for employees to develop transformational leadership behaviour, identifying programmes on how to use soft influence tactics and how to build high quality leader follower relationships; and the application of the Competing Values Framework (CVF) as a uniform performance measure in state-owned enterprises.
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Thesis (PhD (Business Administration)) --University of the Free State, 2020, Poor performance -- State-owned enterprises (SOE's), Zimbabwe's -- State-owned enterprises (SOE's), Poor leadership skills -- Zimbabwe (SOE's), Organisational performance model -- Zimbabwe (SOE's)
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