Leadership Styles and Competitive Advantage: Does Employee Creativity Mediate The Relationship

Authors

  • Murshid Mohamed Obaid Almheiri School of Government (Public management), University Utara Malaysia, Malaysia
  • Abd Rahim Romle School of Government (Public management), University Utara Malaysia, Malaysia
  • Rusdi Omar School of Government (Public management), University Utara Malaysia, Malaysia

DOI:

https://doi.org/10.48165/sajssh.2022.3108%20

Keywords:

transformational leadership, transactional leadership, and autocratic leadership, competitive advantage

Abstract

Competitive advantage is considered as an element which is critical to achieve. This study argued that employee creativity is important for gaining competitive advantage. Likewise. the study also argued that leadership behavior play a significant role in developing creativity among employees. For the purpose of colleting the data three leadership behaviors which are supported by the literature in incorporating employee creativity for gaining competitive advantage have been chosen. The data for transformational leadership, transactional leadership, and autocratic leadership has been collected from the prior studies. The reliability and validity of the instrument has also been ensured and the data has been collected from department of Government housing programs in Abu Dhabi, Dubai, and Sharjah – UAE. The results of partial least square, structural equation modeling revealed that transformational leadership, transactional leadership, and autocratic leadership has a direct and significant positive impact over employee creativity as well as competitive advantage. The findings further ensured that employee creativity mediates the relationship between transformational leadership, transactional leadership, and autocratic leadership and competitive advantage. The findings have practical as well as theoretical significance. At the end some limitations and future recommendations are also mentioned.

References

Afonso, D. D. (2019). A Longitudinal Approach to Team Adaptation Through the Two-Phase Framework: The Role of Team Leadership, Coordination, Behavioral Interaction Patterns and Team Cognition on Team Adaptation when Facing Changes of Different Magnitude. Universidad Autónoma de Madrid.

Afsar, B., Badir, Y. F., Saeed, B. B., & Hafeez, S. (2017). Transformational and transactional leadership and employee’s entrepreneurial behavior in knowledge–Intensive industries. The International Journal of Human Resource Management, 28(2), 307-332. doi:https://doi.org/10.1080/09585192.2016.1244893

Al Marzouqi, S. (2019). The organisational capabilities and their effects on service innovation and service innovation process in the UAE public sector. International Journal of Management and Commerce Innovations, 7(1), 124-140.

Al Kahtani, N., Nawab, A., & Allam, Z. (2016). Unfair HRM practices in the telecom sector in Saudi Arabia: An empirical investigation of selected public and private sector companies. International Journal of Applied Business and Economic Research, 14(10), 6377-6396.

Alavi, S. T., Rabah, S., & Jones, A. (2021). Studying transactional and transformational leader and leadership in government and private organizations in UAE. International Journal of Management (IJM), 12(4), 808-820. doi:10.34218/IJM.12.4.2021.068

Ali, M. I. (2007). Workforce gender diversity: Is it a source of competitive advantage? In managing our intellectual and social capital: Proceedings of the 21st Australian and New Zealand academy of management conference (pp. 1-14). Promaco Conventions Pty Ltd,.

Allam, Z. (2019). Exploring ambient discriminatory HRM practices: An insight from Kingdom Telecom Company. The Journal of Social Sciences Research, 5(3), 646-654.

Amjed, A., & Tirmzi, S. H. S. (2016). Effect of humor on employee creativity with moderating role of transformational leadership behavior. Journal of Economics, Business and Management, 4(10), 594–598.

Asad, M., Altaf, N., Israr, A., & Khan, G. u. (2020). Data analytics and SME performance: A bibliometric analysis. 2020 International Conference on Data Analytics for Business and Industry: Way Towards a Sustainable Economy (ICDABI) (pp. 1-7). Sakhir: IEEE. doi:10.1109/ICDABI51230.2020.9325661

Asad, M., Kashif, M., Sheikh, U. A., Asif, M. U., George, S., & Khan, G. u. (2021). Synergetic effect of safety culture and safety climate on safety performance in SMEs: Does transformation leadership have a moderating role. International Journal of Occupational Safety and Ergonomics, 1-7. doi:10.1080/10803548.2021.1942657

Asad, M., Shabbir, M. S., Salman, R., Haider, S. H., & Ahmad, I. (2018). "Do entrepreneurial orientation and size of enterprise influence the performance of micro and small enterprises? A study on mediating role of innovation. Management Science Letters, 8 (10), 1015-1026. doi:10.5267/j.msl.2018.7.008

Asiya, S., Kazmi, Z., & Takala, J. (2012). Entrenching strategic competitive advantage through transformational leadership. In proceedings of the 2012 International conference on industrial engineering and operations management, (pp. 2517-2526).

Baig, S. A., Iqbal, S., Abrar, M., Baig, I. A., Amjad, F., Zia-ur-Rehman, M., & Awan, M. U. (2021). Impact of leadership styles on employees’ performance with moderating role of positive psychological capital. Total Quality Management & Business Excellence, 32(9- 10), 1085-1105. doi:https://doi.org/10.1080/14783363.2019.1665011

Banmore, O. O., Mudashiru, M., Oluwatooyin, G., Falilat, A., & Olufunke, O. (2019). Effect of strategic leadership on competitive advantage of selected quoted insurance companies in Nigeria. The Journal of Accounting and Management, 9(2).

Botes, M., & Pretorius, M. (2020). Exploring management perceptions of competitive versus transient advantage. Journal of Contemporary Management, 17(1), 41–63.

Burke, R. J. (2018). Leadership in hospitality organizations: achieving competitive advantage. In Handbook of Human Resource Management in the Tourism and Hospitality Industries. Edward Elgar Publishing.

Campbell, B. A., Coff, R., & Kryscynski, D. (2012). Rethinking sustained competitive advantage from human capital. Academy of Management Review, 37(3), 376-395.

Choi, S. B., Kim, K., & Kang, S.-W. (2017). Effects of transformational and shared leadership styles on employees’ perception of team effectiveness. Social Behavior and Personality: An International Journal, 45(3), 377–386.

Damer, N., Al-Znaimat, A. H., Asad, M., & Almansour, A. Z. (2021). Analysis of motivational factors that influence usage of Computer Assisted Audit Techniques (CAATs) auditors in Jordan. Academy of Strategic Management Journal, 20(Special Issue 2), 1-13.

DiLiello, T. C., & Houghton, J. D. (2006). Maximizing organizational leadership capacity for the future: Toward a model of self‐leadership, innovation and creativity. Journal of Managerial Psychology, 21(4), 319-337. doi:https://doi.org/10.1108/02683940610663114

Dong, Y., Bartol, K. M., Zhang, Z.-X., & Li, C. (2017). Enhancing employee creativity via individual skill development and team knowledge sharing: Influences of dual-focused transformational leadership. Journal of Organizational Behavior, 38(3), 439-458. doi:https://doi.org/10.1002/job.2134

Golden III, J. H., & Shriner, M. (2019). Examining relationships between transformational leadership and employee creative performance: the moderator effects of organizational culture. The Journal of Creative Behavior, 53(3), 363–376.

Gu, J., Wang, G., Liu, H., Song, D., & He, C. (2018). Linking authoritarian leadership to employee creativity: The influences of leader–member exchange, team identification and power distance. Chinese Management Studies, 12(2), 384-406. doi:https://doi.org/10.1108/CMS 10-2017-0294

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2013). Editorial - Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance. Long Range Planning, 46(1-2), 1-12.

Haloho, E., & Tawila, L. (2018). Increasing Organization Performance Through Competitive Advantage of Private University in Medan. 1st Economics and Business International Conference 2017 (EBIC 2017).

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135.

Hoogh, D., Annebel, H. B., & Hartog, D. N. (2009). Neuroticism and locus of control as moderators of the relationships of charismatic and autocratic leadership with burnout. Journal of Applied Psychology, 94(9), 1058–1067. doi:https://doi.org/10.1037/a0016253

III, J. H., & Shriner, M. (2019). Examining relationships between transformational leadership and employee creative performance: The moderator effects of organizational culture. The Journal of Creative Behavior, 53(3), 363-376. doi: https://doi.org/10.1002/jocb.216

Jia, J., Liu, H., Chin, T., & Hu, D. (2018). The continuous mediating effects of GHRM on employees’ green passion via transformational leadership and green creativity. Sustainability, 10(9). doi:https://doi.org/10.3390/su10093237

Jiang, Z., & Jia, Z.-R. (2018). Effects of Physical Education teachers’ leadership styles and classroom climate on learning motivation for basketball course. Eurasia Journal of Mathematics, Science and Technology Education, 14(4), 1351–1357.

Jony, M. T., Alam, M. J., Amin, M. R., & Jahangir, M. (2019). The impact of autocratic, democratic and laissez-faire leadership styles on the success of the organization: A study on the different popular restaurants of mymensingh, Bangladesh. Can. J. Bus. Inf. Stud, 1(6), 28-38.

Kark, R., Dijk, D. V., & Vashdi, D. R. (2018). Motivated or demotivated to be creative: The role of self-regulatory focus in transformational and transactional leadership processes. Applied Psychology, 67(1), 186-224. doi:https://doi.org/10.1111/apps.12122

Khajeh, E. H. (2018). Impact of leadership styles on organizational performance. Journal of Human Resources Management Research, 1-10. doi:DOI: 10.5171/2018.687849

Khalili, A. (2016). Linking transformational leadership, creativity, innovation, and innovation supportive climate. Management Decision.

Knezovic, E., & Musrati, M. A. (2018). Empowering leadership, psychological empowerment and employees’ creativity: A gender perspective. International Journal of Innovation, Creativity and Change, 4(2), 51-72.

Kurniawan, F. A., Utami, H. N., & Prasetya, A. (2019). The influence of transformational leadership on individual knowledge acquisition, and employee’s creativity in Pt. Pindad (Persero). The International Journal of Accounting and Business Society, 27(3), 79–105.

Kwak, D.-W., Seo, Y.-J., & Mason, R. (2018). Investigating the relationship between supply chain innovation, risk management capabilities and competitive advantage in global supply chains. International Journal of Operations & Production Management.

Liao, S.-H., Chen, C.-C., Hu, D.-C., Chung, Y., & Yang, M.-J. (2017). Developing a sustainable competitive advantage: absorptive capacity, knowledge transfer and organizational learning. The Journal of Technology Transfer, 42(6), 1431–1450.

Ma, X., & Jiang, W. (2018). Transformational leadership, transactional leadership, and employee creativity in entrepreneurial firms. The Journal of Applied Behavioral Science, 54(3), 302– 324.

Maziti, L., Chinyamurindi, W., & Marange, C. (2018). The relationship between strategic leadership, innovation performance and competitive advantage amongst a sample of small businesses in South Africa. Journal of Contemporary Management, 15(1), 368-394.

Mohiuddin, Z. A. (2017). Influence of leadership style on employees performance: Evidence from literatures. Journal of Marketing & Management, 8(1), 18-30.

Patel, T., Salih, A., & Hamlin, R. G. (2019). Perceived managerial and leadership effectiveness in UAE and Egypt: A comparison through the combined lenses of Islamic work ethics and Islamic leadership. European Management Review, 16(3), 647-666.

Pieterse, A. N., Knippenberg, D. v., Schippers, M., & Stam, D. (2010). Transformational and transactional leadership and innovative behavior: The moderating role of psychological empowerment. Journal of Organizational Behavior, 31(4), 609-623. doi:https://doi.org/10.1002/job.650

Resnick, M., & Robinson, K. (2017). Lifelong kindergarten: Cultivating creativity through projects, passion, peers, and play. MIT press.

Sadq, Z. M., Mohammed, H. O., Othman, B., & Saeed, V. H. (2020). Attitudes of Managers in the Knowledge Private University towards the impact of Human Capital in Achieving Competitive Advantages.

Saleem, M., & Mahmood, F. (2018). Transformational leadership and employees’ creativity: A multi-mediation model. Journal of Management and Research, 5(1), 1–21.

Samsir, S. (2018). The effect of leadership orientation on innovation and its relationship with competitive advantages of small and medium enterprises in Indonesia. International Journal of Law and Management, 60(2), 530-542. doi:ttps://doi.org/10.1108/IJLMA-01- 2017-0005

Sanda, A., & Arthur, N. A. (2017). Relational impact of authentic and transactional leadership styles on employee creativity: The role of work-related flow and climate for innovation. African Journal of Economic and Management Studies, 8(3), 274-295. doi:https://doi.org/10.1108/AJEMS-07-2016-0098

Semuel, H., & Siagian, H. (2015). The different impact between transformational leadership and transactional leadership on competitive advantage. Journal of Progressive Research in Social Sciences (JPRSS), 3(1), 146-153.

Suifan, T. S., Abdallah, A. B., & Janini, M. A. (2018). The impact of transformational leadership on employees’ creativity: The mediating role of perceived organizational support. Management Research Review, 41(1), 113-132. doi:https://doi.org/10.1108/MRR-02- 2017-0032

Tsai, C.-A., & Liao, M.-K. (2016). Examining Firms’ Strategies for Competitive Ad-vantages through Resource-based View and Dynamic Capability View under Different Environments. Management Review, 35(1), 47–72.

Tse, H. H., To, M. L., & Chiu, W. C. (2018). When and why does transformational leadership influence employee creativity? The roles of personal control and creative personality. Human Resource Management, 57(1), 145-157. doi:https://doi.org/10.1002/hrm.21855

Tung, F.-C. (2016). Does transformational, ambidextrous, transactional leadership promote employee creativity? Mediating effects of empowerment and promotion focus. International Journal of Manpower.

Wendy, R., Martin, O., & Methuselah, B. (2017). Mediating Effect of Stakeholder Roles on the Relationship between Destination Branding and Competitive Advantage in Kenya. Journal of Tourism and Hospitality Management, 5(1), 26–33.

Wiedemann, A. (2018). It governance mechanisms for devops teams-how incumbent companies achieve competitive advantages. Proceedings of the 51st Hawaii International Conference on System Sciences.

Yahaya, R., & Ebrahim, F. (2016). Leadership styles and organizational commitment: literature review. Journal of Management Development.

Yamin, M. (2020). Examining the role of transformational leadership and entrepreneurial orientation on employee retention with moderating role of competitive advantage. Management Science Letters, 10(2), 313-326.

Yasin, G., Nawab, S., Bhatti, K. K., & Nazir, T. (2014). Relationship of intellectual stimulation, innovations and SMEs performance: Transformational leadership a source of competitive advantage in SMEs. Middle-East Journal of Scientific Research, 19(1), 74-81. doi:10.5829/idosi.mejsr.2014.19.1.12458

Downloads

Published

2022-02-16

How to Cite

Almheiri, M.M.O., Romle, A.R., & Omar, R. (2022). Leadership Styles and Competitive Advantage: Does Employee Creativity Mediate The Relationship . South Asian Journal of Social Sciences and Humanities, 3(1), 106–124. https://doi.org/10.48165/sajssh.2022.3108