Transformational Leadership And Organisational Performance Of Malaysian E&E Mncs: The Mediating Effect Of Teamwork Cohesion, Organisational Learning And Organisational Innovation
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Date
2016-09
Authors
Adel Tajasom
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Abstract
This research focuses on the relationship between transformational leadership, teamwork cohesion, organisational learning, organisational innovation and organisational performance of MNCs in the Malaysian E&E sector. Drawing on the resource-based view, this research aims to understand the direct relationship between transformational leadership (individualised consideration, intellectual stimulation, inspirational motivation, and idealised influence) and teamwork cohesion, organisational learning, and organisational innovation as well as the relationship with organisational performance (financial and non-financial). This research also examines the mediating effect of teamwork cohesion, organisational learning and organisational innovation on the relationship between transformational leadership and organisational performance. Data were collected from 169 registered MNCs in the Malaysian E&E sector. These MNCs are registered and listed on the Malaysian Investment Development Authority (MIDA) directory. Data collected were analysed using both SPSS and SmartPLS. The findings showed that individualised consideration, intellectual stimulation, and inspirational motivation have significant effect on teamwork cohesion. Also, intellectual stimulation and inspirational motivation were positively related to organisational learning. In addition, individualised consideration, intellectual stimulation, and
inspirational motivation were significantly related to organisational innovation. The findings affirmed that the relationship between transformational leadership and organisational performance are linked via the mediating variables. Teamwork cohesion and organisational innovation were positively related to financial and non-financial organisational performance, but organisational learning was negatively related to financial and non-financial organisational performance. Teamwork cohesion mediated only the relationship between inspirational motivation and non-financial organisational performance. However, organisational learning did not mediate the relationship between transformational leadership and organisational performance. Lastly, organisational innovation-mediated the relationships between individualised consideration and idealised influence and financial organisational performance. Organisational innovation also mediated the relationship between individualised consideration and inspirational motivation and non-financial organisational performance. Finally, this study provides a better understanding of the mediating role of teamwork cohesion, organisational learning and organisational innovation on the relationship between transformational leadership and organisational performance of MNCs in the Malaysian E&E sector. This study is significant for MNCs by highlighting the importance of transformational leadership, teamwork cohesion, and organisational innovation in influencing organisational performance in the Malaysian E&E sector. For policy makers and government, this study encourages the development of teamwork and organisational innovation in E&E sector conducive to long-term value creation in the Malaysian economic plan. It is hoped that the empirical evidence from this study can help the Malaysian E&E sector become more competitive.
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The relationship between transformational leadership, teamwork cohesion, organisational learning, organisational innovation , and organisational performance of MNCs in the Malaysian E&E sector.