This is the third in a series of studies evaluating how transformational leadership is associated with related variables such as job satisfaction, change commitment, leadership trust, cooperative conflict management, and market orientation. The present paper evaluates the effects of transformational leadership and cooperative conflict management along with their mediating and moderating of leadership trust in the life insurance industry for two sample groups, sales managers and sales employees. The main effect of leadership trust was mediated and moderated by cooperative conflict management. Cooperative conflict management made a more important contribution than transformational leadership or the moderating effect (interaction), but these three together were the most important variables predicting highest leadership trust. Transformational leadership has an indirect influence on leadership trust. This work summarizes the specific contribution and importance of building successful leadership trust associations with employees in relation to leadership and satisfaction with change commitment.
Get full access to this article
View all access options for this article.
References
1.
AlperS.TjosvoldD.LawK. S. (2000) Conflict management, efficacy, and performance in organizational teams. Personnel Psychology, 53, 625–642.
2.
AvolioB. J.ZhuW.KohW.BhatiaP. (2004) Transformational leadership and organizational commitment: mediating role of psychological empowerment and moderating role of structural distance. Journal of Organizational Behavior, 25, 951–968.
3.
BabinB. J.HairJ. F.BolesJ. S. (2008) Publishing research in marketing journals using structural equation modeling. Journal of Marketing Theory and Practice, 16, 279–285.
4.
BaronR. M.KennyD. A. (1986) The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51, 1173–1182.
5.
BassB. M. (1985) Leadership and performance beyond expectations.New York: Free Press.
6.
BassB. M.AvolioB. J. (1990) The implications of transactional and transformational leadership for individual, team, and organizational development. Research in Organizational Change and Development, 4, 231–272.
7.
BassB. M.AvolioB. J.JungD. I.BersonY. (2003) Predicting unit performance by assessing transformational and transactional leadership. Journal of Applied Psychology, 88, 207–218.
BradfordD. L.CohenA. R. (1984) Managing for excellence: a guide to developing high performance in contemporary organizations.New York: Wiley.
10.
BrislinR. W. (1980) Translation and content analysis of oral and written material. In TriandisH. C.BerryJ. W. (Eds.), Handbook of cross-cultural psychology.Vol. 2. Needham Heights, MA: Allyn & Bacon. Pp. 349–444.
11.
CarlessS.A.WearingA. J.MannL. (2000) A short measure of transformational leadership. Journal of Business and Psychology, 14, 389–405.
12.
ChangS. J.WitteloostuijnA.EdenL. (2010) From the editors: common method variance in international business research. Journal of International Business Studies, 41, 178–184.
13.
ChaopingL.BaoT.KanS. (2006) Transformational leadership and employee work attitudes: the mediating effects of multidimensional psychological empowerment. Acta Psychologica Sinica, 38, 297–307.
14.
CohenJ. (1988) Statistical power analysis for the behavioral sciences. (2nd ed.) Mahwah, NJ: Erlbaum.
15.
CollinsC. J.SmithK. G. (2008) Knowledge exchange and combination: the role of human resource practices in the performance of high-technology firms. Academy of Management Journal, 49, 544–560.
16.
CostiganR. D.IlterS. S.BermanJ. J. (1998) A multi-dimensional study of trust in organizations. Journal of Managerial Issues, 10, 303–317.
17.
DeshpandeR.FarleyJ. U.WebsterF. E. (1993) Corporate culture, customer orientation, and innovativeness in Japanese firms: a quadrant analysis. Journal of Marketing, 57, 23–37.
18.
DionneS. D.YammarinoF. J.AtwaterL. E.SpanglerW. D. (2004) Transformational leadership and team performance. Journal of Organizational Change Management, 17, 177–193.
19.
DorfmanP. W.HowellJ. P.HibinoS.LeeJ. K.TateU.BautistaA. (1997) Leadership in Western and Asian countries: commonalities and differences in effective leadership process across cultures. Leadership Quarterly, 8, 233–274.
20.
DovingE.GooderhamP. N. (2008) Dynamic capabilities as antecedents of the scope of related diversification: the case of small firm accountancy practices. Strategic Management Journal, 29, 841–857.
21.
EndersC. K. (2005) An SAS macro for implementing the modified Bollen-Stine Bootstrap for missing data: implementing the Bootstrap using existing structural equation modeling software. Structural Equation Modeling, 12, 620–641.
22.
HempelP. S.ZhangZ. X.TjosvoldD. (2009) Conflict management between and within teams for trusting relationships and performance in China. Journal of Organizational Behavior, 30, 41–65.
23.
HeroldD.FedorD.CaldwellS.LiuY. (2008) The effects of transformational and change leadership on employees' commitment to a change: a multilevel study. Journal of Applied Psychology, 93, 346–357.
24.
HerscovitchL.MeyerJ. P. (2002) Commitment to organizational change: extension of a three-component model. Journal of Applied Psychology, 87, 474–487.
25.
HowellJ. P.DorfmanP. W.KerrS. (1986) Moderator variables in leadership research. Academy of Management Review, 11, 88–102.
26.
HsuF. L. K. (1982) Americans and Chinese: passage to differences.Honolulu, HI: Univer. of Hawaii Press.
27.
HughesL. W.AveyJ. B. (2009) Transforming with levity: humor, leadership, and follower attitudes. Leadership & Organization Development Journal, 30, 540–562.
28.
JaccardJ.TurrisiR. (2003) Interaction effects in multiple regression.CA: Sage.
29.
JamesR. L.DemareeR. G.WolfG. (1984) Estimating within-group interrater reliability with and without response bias. Journal of Applied Psychology, 69, 85–98.
30.
JamesR. L.DemareeR. G.WolfG. (1993) An assessment of within-group interrater agreement. Journal of Applied Psychology, 78, 306–309.
31.
JolsonM. A.DubinskyA. J.YammarinoR. J.ComerL. B. (1993) Transforming the sales force with leadership. Sloan Management Review, 34, 95–106.
32.
JudgeT. A.PiccoloR. F. (2004) Transformational and transactional leadership: a meta-analytic test of their relative validity. Journal of Applied Psychology, 89, 755–768.
33.
JungD.YammarinoF. J.LeeJ. K. (2009) Moderating role of subordinates' attitudes on transformational leadership and effectiveness: a multi-cultural and multi-level perspective. Leadership Quarterly, 20, 586–603.
34.
KouzesJ. M.PosnerB. Z. (1987) The leadership challenge: how to get extraordinary things done in organizations.San Francisco: Jossey-Bass.
35.
KrasnikovA.JayachandranS.KumarV. (2009) The impact of customer relationship management implementation on cost and profit efficiencies: evidence from the U.S. commercial banking industry. Journal of Marketing, 73, 61–76.
36.
LiuJ.SiuO. L.ShiK. (2010) Transformational leadership and employee well-being: the mediating role of trust in the leader and self-efficacyJournal of Applied Psychology, 59, 454–479.
37.
MackenzieS. B.PodsakoffP. M.RichG. A. (2001) Transformational and transactional leadership and salesperson performance. Journal of the Academy of Marketing Science, 29, 115–134.
38.
MacKinnonD. P.LockwoodC. M.HoffmanJ. M.WestS. G.SheetsV. (2002) A comparison of methods to test mediation and other intervening variable effects. Psychological Methods, 7, 83–104.
39.
MengucB.AuhS. (2008) Conflict, leadership, and market orientation. Internal Journal of Research in Marketing, 25, 34–45.
40.
NunnallyJ. C. (1978) Psychometric theory.New York: McGraw-Hill.
41.
OsbornR. N.MarionR. (2009) Contextual leadership, transformational leadership and the performance of international innovation seeking alliances. The Leadership Quarterly, 20, 191–206.
42.
PillaiR.SchriesheimC. A.WilliamsE. S. (1999) Fairness perceptions and trust as mediators for transformational and transactional leadership: a two-sample study. Journal of Management, 25, 897–933.
43.
PodsakoffP. M.MackenzieS. B. (1997) The impact of organizational citizenship behavior on organizational performance: a review and suggestions for future research. Human Performance, 10, 133–151.
44.
PodsakoffP. M.MacKenzieS. B.BommerW. H. (1996) Transformational leader behaviors and substitutes for leadership as determinants of employee satisfaction, commitment, trust, and organizational citizenship behaviors. Journal of Management, 22, 259–298.
45.
PodsakoffP. M.MackenzieS. B.MoormanR. H.FetterR. (1990) Transformational leader behaviors and their effects on followers: trust in leader, satisfaction, and organizational citizenship behaviors. The Leadership Quarterly, 1, 107–142.
RyanT. P. (1997) Modern regression methods. New York: Wiley.
48.
SchaubroeckJ.LamS. S. K.ChaS. E. (2007) Embracing transformational leadership: team values and the impact of leader behavior on team performance. Journal of Applied Psychology, 92, 1020–1030.
49.
SchoormanF.MayerR.DavisJ. (2007) An integrative model of organizational trust: past, present, and future. Academy of Management Review, 32, 344–354.
50.
SchumackerR. E.LomaxR. G. (1996) A beginner's guide to structural equation modeling. Hillsdale, NJ: Erlbaum.
51.
ShouZ.GuoR.ZhangQ.SuC. (2011) The many faces of trust and guanxi behavior: evidence from marketing channels in China. Industrial Marketing Management, 40, 503–509. DOI: 10.1016/j.indmarman.2010.12.006.
52.
SnellR. S.TjosvoldD.SuF. S. (2006) Resolving ethical conflicts at work through cooperative goals and constructive controversy in the People's Republic of China. Asia Pacific Journal of Management, 23, 319–343.
53.
SomechA.DesivilyaH. S.LidogosterH. (2009) Team conflict management and team effectiveness: the effects of task interdependence and team identification. Journal of Organizational Behavior, 30, 359–378.
54.
TabachnickB.FidellL. (2007) Using multivariate statistics. Boston, MA: Allyn & Bacon.
55.
TichyNDevannaM. A. (1986) The transformational leader. New York: Wiley.
56.
TjosvoldD. (2008) The conflict-positive organization. Journal of Organizational Behavior, 29, 19–28.
57.
TsuiA. S.NifadkarS. S.OuA. Y. (2007) Cross-national, cross-cultural organizational behavior research: advances, gaps, and recommendations. Journal of Management, 33, 426–478.
58.
WilliamsM. (2001) In whom we trust: group membership for an affective context for trust development. Academy of Management Review, 26, 377–396.
59.
YangY. F. (2011a) Leadership and change commitment in the life insurance service context in Taiwan: the mediating-moderating role of job satisfaction. Perceptual and Motor Skills, 112, 889–914.
60.
YangY. F. (2011b) Leadership and satisfaction in change commitment. Psychological Reports, 108, 717–736.
61.
YenD. A.BarnesB. R.WangC. (2011) The measurement of guanxi: introducing the GRX model. Industrial Marketing Management, 40, 97–108.
62.
YuklG. (2010) Leadership in organizations. Englewood Cliffs, NJ: Prentice Hall.
63.
YungY. F.BentlerP. M. (1996) Bootstrapping techniques in analysis of mean and covariance structures. In MarcoulidesG. A.SchumackerR. E. (Eds.), Advanced structural equation modeling: issues and techniques. Mahwah, NJ: Erlbaum. Pp. 195–226.
64.
ZeinabadiH.RastegarpourH. (2010) Factors affecting teacher trust in principal: testing the effect of transformational leadership and procedural justice. Procedia: Social and Behavioral Sciences, 5, 1004–1008.
65.
ZhangX.CaoQ.TjosvoldD. (2011) Linking transformational leadership and team performance: a conflict management approach. Journal of Management Studies, 48, 156–1611. DOI: 10.1111/J.1467-6486.2010.00974.X.
