Journal of Korean Society for Quality Management (품질경영학회지)

Korean Society for Quality Management (한국품질경영학회)
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The Effect of Small Firm CEOs' Transformational Leadership on Employees' Innovative Behavior

소기업 CEO의 변혁적 리더십이 직원의 혁신행동에 미치는 영향

  • Kim, Yong-Mook (Department of Business Administration, Graduate School of Soongsil University) ;
  • Shin, Ho-Chul (College of Business Administration, Soongsil University)
  • 김용묵 (숭실대학교 일반대학원 경영학과) ;
  • 신호철 (숭실대학교 경영대학 경영학부)
  • Received : 2019.02.07
  • Accepted : 2019.02.20
  • Published : 2019.03.31
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Abstract

Purpose: Despite the fact that the majority of domestic firms are small in size, there have been few studies conducted to understand the leadership effectiveness of small firm CEOs. Based on the upper echelon theory, this study attempts to demonstrate empirically that transformational leadership of small firm CEOs can increase the innovative behavior of employees. In addition, the present study examines mediating effects of CEO trust perceived by employees when transformational leadership affects employees' innovative behavior. Methods: The survey data of CEOs'transformational leadership, innovative behavior of employees, and perceived CEO trust were collected from 176 employees working in domestic small firms. Hierarchical regression analyses were performed to examine the main effects between transformation leadership and innovative behavior and mediating effects of CEO trust perceived by employees. Results: The results show that CEOs' transformational leadership is significantly related to the innovative behavior of employees in the current sample. Results also indicate that CEO trust perceived by employees reveals a mediating effect in the process of transformational leadership affecting innovative behavior. Conclusion: The results show that as suggested by the upper echelon theory, the leadership of small firm CEOs can have a significant impact on positive job-related behaviors and attitudes of employees. The results also contribute to expand on the understanding of the relationship between transformational leadership and innovative behavior by explaining that transformational leadership can mediate trust in CEOs in enhancing employees'innovative behavior. Theoretical and practical implications are reviewed, and limitations of the study and suggestions for future research are addressed.

Keywords

Table 1. Factor analysis results for variables

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Table 2. Descriptive statistics, correlations, and Cronbach’s alpha

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Table 3. Hierarchical regression analyses for main and mediating effects

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Table 4. The effect of Transformational Leadership on CEO’s Trust

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