The Values, Leader-Member Exchange, And Leadership Effectiveness Of Chief Executive Officers In South Sumatra, Indonesia

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Date
2005-06
Authors
PERIZADE, BADIA
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Abstract
This research has the following objectives: a) to study the dominant values of CEOs and how these values influence the relationship between leader and members in medium and large firms in South Sumatra, Indonesia. b) to study the influence of LMX toward leadership effectiveness of CEOs in .South Sumatra, Indonesia, and c) to examine the mediating effect of LMX between values and leadership effectiveness, which is indicated by the members' Job satisfaction, members' commitment, and attitude to change. A research framework relating values to LMX and leadership effectiveness was developed. Three major hypotheses were formed: a) Leaders' values influence the leadermember exchange; b) Leader-member exchange influences leadership effectiveness; and c) Leader-member exchange~medlates-=-thecd"elationship between leaders' values and leadership effectiveness. Data was collected from 126 companies (CEOs) and 613 members (subordinates). Two sets of questionnaires were used to collect the data. The analysis of data was done using correlation analysis and regression analysis. The results showed that self-direction, self-enhancement (power and achievement), self-transcendence (universalism and benevolence) and conservation (security and conformity) are the dominant values. Hypothesis (a) was supported, but only conservation values had influence on LMX. Hypothesis (b) was supported, where LMX had influence on the leadership effectiveness, intrinsic and extrinsic job satisfaction, affective and normative commitment, and attitude to change. Hypothesis (c) was supported, conservation values were fully mediated by LMX toward the leadership effectiveness. From the above it maybe concluded that leaders' values have an important role in leadership effectiveness and also the quality of relationship between leader and members (LMX) contribute towards leadership effectiveness.
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The Values, Leader-Member Exchange, And Leadership Effectiveness , Of Chief Executive Officers In South Sumatra, Indonesia
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