Home Business & Finance Distance Leadership in International Corporations: Why Organizations Struggle when Distances Grow
Summary of statistical analyses
The following paragraph provides a thorough summary of all hypotheses tested in this work. A graphical summary of hypotheses is illustrated in Figure 14.
Figure 14. Summary of Hypotheses
Note. The solid lines represent direct relations, dashed lines represent moderation or mediation influences
Hypotheses were separated into two sequences. The first sequence was concerned with direct effects of perceived leadership behavior on follower self-leadership and performance. First, transformational and transactional leadership were projected to predict positive follower self-leadership, whereas passive leadership was expected to result in negative self-leadership. Calculations revealed that transactional leadership had a direct positive influence on self-leadership as the only predictor of FRL. Neither transformational nor passive leadership gave indications for any direct effect. Transformational and transactional leadership were further projected to lead to positive follower performance yet it was expected that passive leadership would result in a decrease in follower performance. This hypothesis was completely rejected as none of the three FRL dimensions showed any direct effect on follower individual performance. It was later hypothesized that follower self-leadership strategies have a direct positive influence on individual follower performance. Findings revealed that this was true, especially for individuals pursuing natural reward and social self-leadership strategies.
The second and imperative sequence of hypotheses for this work was concerned with the effects of distance dimensions on the influence of Full Range Leadership on follower self-leadership and performance. In particular, the leader-follower relationship was uncovered in terms of three distance dimensions: (1) physical distance, (2) relationship quality, and (3) interaction frequency. All three distance dimensions were projected to have some influence on the effects of leadership behavior on work-related outcomes. Physical distance, for example, was predicted to negatively moderate the influence of perceptions of transformational, transactional, and passive leadership on follower self-leadership and performance. For follower selfleadership strategies, transformational and passive leadership behavior were moderated by physical distance. For very close and very distant followers, transformational leadership predicted self-leadership positively. For the group that was moderately distant, physical distance revealed no influence. Effects of passive leadership on follower self-leadership were further moderated by physical distance. For close and moderately distant followers, physical distance showed no effects, whereas for very distant followers, physical distance negatively moderated the influence. Testing moderating effects of physical distance on performance outcomes, hypotheses had to be rejected as physical distance failed to intervene. For direct effects on relationship quality, physical distance did seem to matter. In other words, followers who were more physically distant from their leaders perceived the relationship with their leader to be lower in quality. In the following, perceptions of relationship quality were assumed to mediate the effects of leadership behavior on follower performance. Outcomes revealed that the influence of transformational leadership on follower performance was mediated by followers’ perceptions of relationship quality. In other words, the relationship between transformational leadership and follower performance may be explained by the quality of relationship between leader and follower. Similar findings were retrieved for influences of transactional and passive leadership. For all three FRL behaviors, relationship quality did mediate the impact of leadership on follower performance. Finally, the third distance dimension, interaction frequency, was tested for moderation. Transformational leadership provided evidence that interaction frequency might play a moderating role affecting the extent of follower individual performance. Particularly, for those followers interacting frequently with their leaders, transformational leadership revealed significant influence on follower performance. With less interaction, the influence of transformational leadership on performance diminished. Outcomes of hypotheses tests are illustrated in Table 28.
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