A model of transformational leadership and organisational performance in state-owned enterprises in Zimbabwe
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Date
2020
Authors
Badarai, Edson
Journal Title
Journal ISSN
Volume Title
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.
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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.
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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
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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.
Description
Keywords
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)