Purpose This paper aims to provide more knowledge on antecedent conditions of organizational capacity for change by examining the mediating role of employee trust in relationship between transformational leadership (TL) and two components of organizational change capacity (OCC) (innovative culture and capable champions) in Chinese firms. Design/methodology/approach Survey data were collected from 269 participants at 65 Chinese firms. Structural equation modeling was used to test hypotheses in the proposed research model. Findings The research findings indicate that within the Chinese context, TL and two dimensions of employee trust in leadership (cognition-based trust and affect-based trust) are positively related to innovative culture and capable champions. Moreover, the two dimensions of employee trust act as the mediating roles between TL and components of OCC. Research/limitations implications The results and benchmarks in this paper are appropriate for a particular context of Chinese firms. Future research should examine other contexts to provide a clearer picture of the relationship between the constructs. Practical implications The study highlights the importance of practicing TL style to build employee trust in leadership aimed at fostering innovative culture and capable champions. Originality/value The paper has provided theoretical and managerial initiatives in the field of organizational behavior and change management that can clarify the relationship between TL, employee trust and OCC. These initiatives might help firms to identify a right pathway for promoting OCC and adapting more quickly and effectively to the change of business environment.
Innovation capability is widely accepted as an important means to attain sustain competitive advantage for firms before the rapidly changing of business environment and increasingly competitive pressure. The main goal of this study is to explore an effective way to successfully improving innovation capability for firms based on examining the relationship between transformational leadership style, interpersonal trust, and innovation capability of Vietnamese firms. The authors apply Structural Equations Modeling (SEM) to test the impacts of transformational leadership, interpersonal trust on innovation capability by using data collected from 195 participants in Vietnamese firms. The result revealed that transformational leadership and interpersonal trust significantly affect innovation capability. In addition, interpersonal trust mediates the relationship between transformational leadership and innovation capability. The findings highlights the need of practicing transformational leadership to foster employee trust and finally to enhance innovation capability for firms. The findings of this study contribute to filling the theoretical gaps which call for research on antecedent factors of innovation capability.
We examined the mediating effects of optimism and self-efficacy in the relationship between transformational leadership and knowledge sharing in a Chinese context. Survey data were collected from 365 participants employed by 80 Chinese firms. The findings indicated that self-efficacy and optimism—2 dimensions of an individual's psychological capital—mediated the relationship between transformational leadership and knowledge sharing highlighting the importance of practicing transformational leadership to influence employees' positive psychological capital so that they engage in knowledge collecting and knowledge donating. We discuss theoretical and managerial initiatives in the fields of psychology and organizational behavior, to help managers of firms promote knowledge sharing among employees in their organization.
Innovation is the key and fundamental forces for firms to survive and grow in a competitive environment. The paper aims to examine the correlation between Transformational Leadership (TL) and employees' psychological sources and how they affect an organization's Innovation Capability (IC). Structural Equations Modeling (SEM) is utilized to elaborate the relationship among the proposal factors using survey data gathered from 315 participants of 65 medium and small-sized firms in Vientiane, Laos. The findings show that employees' psychological sources, namely optimism and self-efficacy, act as mediating roles in the effects of TL on IC. The findings revealed that TL's Idealized Influence (TII) brings employees greater optimism, while individualized consideration creates a stronger self-efficacy among employees. In addition, it highlighted the extreme importance of self-efficacy in stimulating IC compared with optimism's effect. From a practical view, the paper highlights the importance and need to apply TL style in organization management to develop employees' positive psychological capital and improve IC actively. The paper's findings also bring deeper understanding and theoretical initiatives that can be applied to clarify the correlation among TL, forms of employees' psychological capital, and IC.
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