The emerging role of transformational leadership

Abstract

This paper presents a literature review of leadership over the years and the emerging role of transformational leadership. We also argue that this form of leadership is appropriate in the context of globalized markets, where there is increasing diffusion of goods, services, values and technologies globally, which results in the convergence of societies toward a uniform pattern of economic, political and cultural organization. There are various issues and consideration existing in the leadership literature as “the core of the criticism in the literature is that organisations of all sorts (corporations, government agencies, and not-for-profit organisations) tend to be over-managed (and/or over-administrated) and under-led” (Mills 2005, p.19). Mills (2005) highlights the vital importance of leadership in both political and business areas, and argues that organisations in both areas, in the absence of effective leadership, are not capable of effectively implementing changes at the organisational level. This paper adopts a conceptual approach aiming to convey the importance of transformational leadership amongst other styles. In this paper, we review the role of leadership in the business area and establish the need to investigate transformational leadership, as an ideal leadership form in enabling firms to accomplish sustainable competitiveness as they operate in global markets. Based on the various leadership theories discussed be further argued that leadership is highly essential for business organisations to achieve a sustained change and eventually higher degree of effectiveness, especially when operating in global markets. Transformational leadership, comprising characteristics of idealised influence, individualised consideration, intellectual stimulation, and inspirational motivation has been found to have implications for higher leadership effectiveness in new market environments and production locations. Various empirical studies highlighted transformational leadership as an enabler of innovation. To demonstrate the role of transformational leadership in organizational innovation, it can be argued that these leaders facilitate the generation of new knowledge and ideas through applying intellectual stimulation aspect that motivates employees to approach organizational problems in a more novel approach. Accordingly, we establish the appropriateness of transformational leadership as a managerial-based, output-based as market-based competency for firms in globalized markets. We conclude by providing suggestions and scope for empirical investigation into local organizations to evaluate the extent of transformational leadership apparent and how effective they can be in globalized markets. The findings from empirical studies could provide managerial and research implications on a Nation’s competitiveness in today’s dynamic and globalized environments.

The Impact of Transformational Leadership Style on Organizational Performance: Evidence from Jordan

“…While this basic definition of leadership has consistently been used as a foundation for evaluating this process, scholars have developed various frameworks aimed at understanding the theoretical foundations of leadership in practice (Ghasabeh, Reaiche, & Sossay, 2015). Trait, behavioral, situational, transactional, and transformational leadership styles are just a few of the theories that have been proposed to evaluate the rudiments of leader behavior and the basis for motivation and influence (Ghasabeh et al, 2015).…”

“…As described by Ghasabeh et al (2015) transformational leadership focuses on satisfying the basic and higher-order needs of followers through inspiration to achieved desired goals. Transformational leadership is often juxtaposed against transactional leadership in which transactions form the basis of follower motivation (Kim & Yoon, 2015).…”

The Myth of the Additive Effect of The Transformational Leadership Model

“…The related literature claims that the reviewed model identifies the distinctive influence on organizational performance from each of the four variables and that the joint influence of these variables characterizes the influence of transformational leadership. Such a model focuses on the effects of possessing each of the four I's (Avolio, 2011;Bass & Avolio, 1990;Erkutlu, 2008;Gellis, 2001;Ghasabeh, Reaiche, & Soosay, 2015;Hall et al, 2015). The additive effect of transformational leadership claimed by earlier research shows the powerful joint outcomes of the four I's: performance beyond expectations.…”

Discovering Servant Leader Relations with New Followers in Nonprofit Organizations: Does a Servant Leader Always Serve First?

“…The transformational theory was originally developed by Burns in 1978 and expanded upon by Bass in 1985 to develop a method to increase collective productivity in an organization by emphasizing the individual (Ghasabeh, Reaiche, & Soosay, 2015). Transformational leaders motivate followers to operate in a first-rate manner for the good of the organization (van Dierendonck, Stam, Boersma, de Windt, & Alkema, 2014).…”

“…Van Dierondonck combined 44 different characteristics of servant leader studies down to six characteristics of the theory and actions of a servant leader which are as follows: the elements of empowerment, humbleness, genuineness, relational approval, guidance, and social responsibility (van Dierendonck, 2011). This list of characteristics and elements of a servant leader distinguish this leadership theory from other similar leadership theories, such as transformational leadership theory (Ghasabeh, Reaiche, & Soosay, 2015).…”