Effect of Transformational Leadership and Organizational Innovativeness on Motor Carrier Performance

Abstract

This dissertation developed a theoretical model of the relationship between transformational leadership, organizational innovativeness, and organizational performance, both operational and financial. To test the model, data were collected from upper management at motor carriers that provide for-hire transportation services within the continental United States. A survey was developed using existing, validated scales for each of the constructs. Contact data were collected for 500 motor carriers to include individual names, positions, and e-mail addresses. The survey was administered on-line using Qualtrics. Over 4,000 e-mails were sent directly to 1,959 desired points of contact with the link to the survey. The 158 usable responses represented an 8% individual response rate and a 32% company response rate. Analysis of the data using structural equation modeling revealed that all hypotheses were supported. The results of this study support a direct and indirect effect of transformational leadership on the bottom line performance of an organization. Two mediators, organizational innovativeness and operational performance, were tested and the amount of variance in financial performance accounted for by the hypothesized model was 38%. Implications for researchers and practitioners are discussed along with limitations and areas for future research.