Examining the effects of dual-level transformational leadership, LMX, and group cohesiveness on employee service performance
Authors: Liang-Chieh Weng, Yi-Chu Lai
Journal: Chiao Da Management Review. Jun. 2012, 32(1): 163-195.
Keywords: Dual-level transformational leadership; Leader-member exchange; Group cohesiveness; Hierarchical linear modeling
Abstract:
ln this study, we propose a multi-level
theoretical framework within which we
identify transformational leadership at
dual levels as the primary source of the
positive influence on employee service
performance through the mechanism of
leader-member exchange (LMX) and group
cohesiveness. Data are obtained from 23
branches of a large cornmercial bank in
central Taiwan, with the samples
collected from both managers and
employees forming 228 manager-employee
dyads, and thereby avoiding common method
variance. Our results reveal that both
levels of transformational leadership and
LMX have significantly positive effects
on employee service performance, with LMX
also playing a mediating role between
individual-focused transformational
leadership and service performance.
Group-focused transformational leadership
affects employee service perfomlance
through group cohesiveness.
Interestingly, group cohesiveness is
found to be an important moderator which
also enhances the relationship between
LMX and service performance. Our study
includes a discussion ofthe theoretical
and practical implications of our findings.