The Leadership Arena-Reputation-Identity (LARI) Model: Distinguishing shared and unique perspectives in multisource leadership ratings

Abstract

Multisource leadership ratings rely on the assumption that –in addition to the leader’s self-evaluation– different rater groups (i.e., subordinates, peers and superiors) bring in unique perspectives and thus provide a more well-rounded analysis of the leader’s behavior. However, the way in which multisource data are typically treated in research offers little information about the precise levels of overlap and uniqueness that are encapsulated in these different perspectives. Drawing on the Trait-Reputation-Identity (TRI) model, we propose a model that conceptualizes these shared and unique perspectives in terms of latent factors reflecting respectively (i) the consensus about the leader (i.e., the Leadership Arena), (ii) the impressions conveyed to others that are distinct from self-perceptions (i.e., the leader’s Reputation), and (iii) the unique self-perceptions of the leader (i.e., the leader’s Identity). This Leadership Arena-Reputation-Identity (LARI) model is formalized by means of bifactor modeling, which allows to statistically decompose the variance captured by multisource ratings. The LARI model was tested against five alternative models in two large multisource samples (N1 leaders = 537, N1 observers = 7,337; N2 leaders = 1,255, N2 observers = 15,777), each using different leadership instruments. In both samples, the LARI bifactor model outperformed the alternative models. A subsequent variance decomposition showed that each rater source indeed provides unique information about the target’s behavior, although in varying degree. Across all leadership dimensions in both samples, superiors consistently provided the largest share of unique information among the three observer groups. Implications and future directions are discussed.