||A Study of the Relationship between Transformational Leadership and Firm Performance: The Awareness-Motivation-Capability
||Institute of International Management (IIMBA--Master)(on the job class)
Building on the competitive dynamics perspective, or specifically the awareness-motivation-capability (AMC) perspective, this study examines the effect of the interplay between transformational leadership (as a manifestation of capability) and competitive awareness on learning climate (as a manifestation of motivation), which in turn brings about heterogeneous financial advantage for the branches of a bank. Research results based on the large data collected from a commercial bank’s national branches support most of our hypotheses. Specifically, transformational leadership can advance a learning climate which in turn promotes financial performance of bank branches. Although competitive awareness does not play a moderating role, it produces a direct effect on learning climate. The study extends the AMC perspective and competitive dynamics theory by examining unit performance of a bank within the broad contexts of executive leadership, collective learning and sense-making on the business environment.
TABLE OF CONTENTS IV
LIST OF TABLE VII
LIST OF FIGURES VIII
CHAPTER ONE INTRODUCTION 1
1.1 Research Background and Motives. 1
1.2 Research Objective. 4
1.3 Research Procedure. 4
CHAPTER TWO LITERATURE REVIEW 6
2.1 Theoretical Background: AMC Perspective. 6
2.2 Research Variables. 9
2.2.1 Competitive Awareness. 9
2.2.2 Learning Climate as a Manifestation of Competitive Motivation. 10
2.2.3 Transformational Leadership as a Manifestation of Competitive Capability. 11
2.2.4 Unit Performance. 13
2.3 Relationship among Research Constructs. 15
2.3.1 Transformational Leadership and Learning Climate. 15
2.3.2 Competitive Awareness, Transformational Leadership and Learning Climate. 15
2.3.3 Learning Climate and Unit Performance. 16
2.3.4 Transformational Leadership and Unit Performance. 16
2.3.5 Learning Climate, Transformational Leadership and Unit Performance. 17
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 18
3.1 Conceptual Framework. 18
3.2 Hypotheses to be Tested. 19
3.3 Construct Measurement and Questionnaire Design. 19
3.3.1 Transformational Leadership. 19
3.3.2 Learning Climate. 20
3.3.3 Competitive Awareness. 21
3.3.4 Unit Performance. 22
3.3.5 Questionnaire Design. 23
3.4 Sampling and Statistical Analysis 23
3.5 Data Analysis. 24
3.5.1 Reliability Test. 24
3.5.2 Interrater Reliability Test. 24
3.5.2 Validity Analysis. 25
CHAPTER FOUR RESEARCH RESULT 28
4.1 Correlation Analysis. 28
4.2 Results of Hierarchical Regression Analysis. 29
4.2.1 Relationships among Competitive Awareness, Transformational Leadership and Learning Climate. 29
4.2.2. Relationships among Transformational Leadership, Learning Climate and Unit Performance. 30
CHAPTER FIVE CONCLUSION AND SUGGESTION 33
5.1 Discussion of Research Results. 33
5.1.1. Test of Research Hypotheses. 33
5.1.2 Discussion of Major Findings. 34
5.2 Theoretical Implications. 36
5.3 Managerial and Practical Implications. 37
5.4 Limitations and Future Directions. 38
5.4.1 Limitations. 38
5.4.2 Future Directions. 39
Appendix 1: Questionnaire for Chinese Version 43
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