Purpose-The aim of the study was to examine the relationship between transformational leadership and organizational cultural orientations, as well as the joint effect of transformational leadership and organizational culture on business unit performance. Design/methodology/approach-About 300 employees of a large financial organization in Greece filled in a number of questionnaires measuring organizational culture orientations and transformational leadership. The measurement of business unit performance was obtained by the organization under study. Findings-A path analysis showed that the achievement and adaptive cultural orientations had a direct effect on performance. Moreover, transformational leadership and humanistic orientation had an indirect positive impact on performance via achievement orientation. Research limitations/implications-A research limitation is that the causal direction of the relations between the predictors and the criteria has been partially established by controlling for the effect of past performance on the perceptions of organizational culture and leadership. Practical implications-On a practical level the findings suggest that constructive and positive social relations at work need to be accompanied by goal setting and task accomplishment if high organizational performance is to be achieved. Originality/value-The originality of this study concerns the finding that organizational culture mediates the effect of transformational leadership on business unit performance.

A review of the literature revealed four major self-report measures of organizational culture measuring organizational behavioral norms or values. This study set out to compare these different measures by correlational and factor analysis. The results of the correlational analysis showed the convergent validity of the questionnaires in a number of significant correlations among the overlapping subscales intended to measure the same theoretical construct in each of the four questionnaires. Finally, the factor analysis yielded six readily interpretable factors providing an eclectic framework of the organizational culture dimensions which is supported by the relevant literature. Results are discussed in terms of different frameworks and measures of organizational culture.

Purpose: The aim of this research was to investigate the effect of transformational leadership and transactional contingent reward as complementary, but distinct, forms of leadership on facets of organizational identification via the perception of innovation and goal organizational values.Design/Methodology/Approach: Three studies were carried out implementing either a measurement of mediation or experimental-causal-chain design to test for the hypothesized effects.Findings: The measurement of mediation study showed that transformational leadership had a positive direct and indirect effect, via innovation value orientation, on cognitive identification, whereas transactional contingent reward was more strongly related to affective, rather than cognitive, identification, and goal orientation was a mediator of their link. The findings of the two experimental-causal-chain studies further supported the hypothesized effects. Transformational leadership was found to lead subordinates to perceive the culture as more innovative compared to transactional contingent reward, whereas transactional contingent reward led employees to perceive the culture as more goal, than innovation, oriented. Finally, innovation, compared to goal, value orientation increased cognitive identification, while goal orientation facilitated affective, rather than cognitive, identification.Implications: The practical implications involve the development of strategies organizations can apply, such as leadership training programs, to strengthen their ties with their employees, which, in turn, may have a positive impact on in-role, as well as extra-role, behaviors.Originality/Value: The originality of this research concerns the identification of distinct mechanisms explaining the effect of transformational leadership and transactional contingent reward on cognitive and affective identification applying an organizational culture perspective and a combination of measurement and causal mediation designs.

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