||Bridging Transformational Leadership and Employee Psychological Ownership: The Roles of Leader-Member Exchange and Procedural Justice
||Institute of International Management (IIMBA--Master)(on the job class)
Leader-Member Exchange (LMX)
The direct relationships between transformational leadership and individual-level outcomes have been largely explored, yet the mechanisms in-between the relationships have received limited attention thus far. To fill in the gaps in the literature, the study employs the social exchange theory to examine the effect of transformational leadership on employees’ psychological ownership through the mediation of procedural justice and the moderation of leader-member exchange (LMX).
Research results based on a sample collected from 223 respondents in different industries in Taiwan show that transformational leadership exerts a positive effect on procedural justice and psychological ownership, respectively. Procedural justice also produces a positive effect on employees’ psychological ownership, and plays a partial meditating role in the relationship between transformational leadership and procedural justice. Moreover, leader-member exchange (LMX) is shown to positively moderate the relationship between transformational leadership and procedural justice.
The research contributes to the transformational leadership literature by employing the social exchange theory to explore the mechanisms that can convert leadership behaviors into positive employee attitude. This study also can help managers to think about how to keep their talents. Future directions and implications are discussed as well.
TABLE OF CONTENTS IV
LIST OF TABLES VII
LIST OF FIGURES VIII
CHAPTER ONE INTRODUCTION 1
1.1 Research Background and Motivation. 1
1.2 Research Objectives and Contributions. 3
1.3 Research Procedure. 4
1.4 Paper Structure. 5
CHAPTER TWO LITERATURE REVIEW 7
2.1 Theoretical Background. 7
2.1.1 Social Exchange Theory. 8
2.2 Definitions of Relevant Research Variables. 9
2.2.1 Psychological Ownership. 9
2.2.2 Transformational Leadership. 11
2.2.3 LMX: Leader-Member Exchange. 12
2.2.4 Procedural Justice. 13
2.3 Development of Research Hypotheses. 14
2.3.1 The Relationship between Transformational Leadership and Procedural Justice. 14
2.3.2 The Relationship between Procedural Justice and Psychological Ownership. 15
2.3.3 The Role of Leader-Member Exchange (LMX) on the Relationship between Transformational Leadership and Procedural Justice. 15
2.3.4 The Relationship between Transformational Leadership and Psychological Ownership. 16
2.3.5 The Associations between Transformational Leadership, Procedural Justice, and Psychological Ownership. 17
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 18
3.1 Conceptual Model. 18
3.2 Construct Measurement and Definitions of Variables. 19
3.3 Summary of Hypotheses. 19
3.4 Sampling Plan. 20
3.5 Measurement Scale of Variables. 20
3.5.1 Transformational Leadership. 20
3.5.2 Psychological Ownership. 21
3.5.3 Procedural Justice. 22
3.5.4 Leader-Member Exchange (LMX). 23
3.6 Control Variables. 24
3.6.1 Gender. 24
3.6.2 Age. 24
3.6.3 Martial Status. 25
3.6.4 Level of Position. 25
3.6.5 Education. 26
3.7 Method of Analysis. 26
3.7.1 Confirmatory Factor Analysis (CFA). 26
3.7.2 Reliability Test. 26
3.7.3 Pearson Correlation. 27
3.7.4 Hierarchical Regression Analyses. 27
3.7.5 Common Method Variance. 27
CHAPTER FOUR RESEARCH RESULTS 28
4.1 Data Collection. 28
4.2 Confirmatory Factor Analysis. 28
4.3 Reliability Test and Validity Test. 32
4.4 Mean, Standard Deviation, and Pearson Correlation. 34
4.5 Hierarchical Regression. 36
4.6 Common Method Variance. 39
CHAPTER FIVE CONCLUSION AND SUGGESTIONS 40
5.1 Discussion and Conclusion. 40
5.1.1 Theoretical Implications. 41
5.1.2 Managerial Implications. 44
5.2 Research Limitation and Suggestion for Future Research. 45
Appendix 1: Research Questionnaire in Chinese. 53
Appendix 2: Research Questionnaire in English. 56
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