Does Transformational Leadership Better Predict Work-Related Outcomes Than Transactional Leadership in the NPO Context?
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RESEARCH PAPERS
Does Transformational Leadership Better Predict Work-Related Outcomes Than Transactional Leadership in the NPO Context? Evidence from Italy Mohammed Aboramadan1
•
Yasir Mansoor Kundi2
Accepted: 19 September 2020 Ó International Society for Third-Sector Research 2020
Abstract With limited studies on the relative effectiveness of different leadership styles in NPOs, the purpose of this paper is to propose a model in which work engagement mediates the effects of transformational leadership and transactional leadership simultaneously on affective commitment and organizational citizenship behavior among NPOs employees. Furthermore, the paper aims to investigate whether transformational leadership better explains work engagement and the aforesaid outcomes than transactional leadership. Relying on large scale data collected from employees working in two types of NPOs categories (human service organizations and charities) in the north of Italy, structural equation modeling was utilized to verify the aforesaid linkages. Among others, the indirect effect of transformational leadership on affective commitment and organizational citizenship behavior, through work engagement, was stronger than the indirect effect of transactional leadership. Implications, limitations, and future research are provided. Keywords Transformational leadership Transactional leadership Work engagement NPOs Affective commitment Organizational citizenship behavior Italy
& Mohammed Aboramadan [email protected] Yasir Mansoor Kundi [email protected]; [email protected] 1
Department of Economics, Management, and Statistics, University of Milano Bicocca, Piazza dell’Ateneo Nuovo, 20126 Milan, Italy
2
Graduate School of Management – IAE, CERGAM, Aix Marseille University, Aix-En-Provence, France
Introduction There has been a considerable amount of research into transformational and transactional leadership in recent years as a result of the continual changes/challenges organizations face. As both human and financial resources have become more constrained, and the workplace has undergone significant changes, nonprofit organizations (NPOs) need leaders with greater creativity and innovation if organizational aims are to be achieved (Golensky 2011). Bass and Avolio (1994, 2004) investigated the ways in which leadership can be separated into transactional or transformational styles. With transformational leadership, leaders create and model inspiring visions for the future, thereby making their followers experience higher levels of motivation and positive emotions (Bass 1997). Transactional leadership, however, is dependent on a series of detailed transactions between leaders and followers (Bass 1985). NPOs are organizations that promote a social cause, pursue activities to promote interest of poor, undertake community development, and provide social services to people and community (Shiva and Suar 2012). According to Li (2019), NPOs are run as one-man-show along with a bunch of professionals and
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