We examine the relationships and intervening mechanisms between founding CEOs' transformational/transactional leadership and the innovative behaviour of managers. We develop and test our hypotheses on a sample of 39 participating CEOs and 105 managers with the use of a multilevel structural equation model. The results show that both transformational and transactional leadership on the part of the CEO relate positively to managers' innovative behaviour. We also discover that firm's innovative climate mediates the relationship between transformational leadership and innovative behaviour. However, we fail to find the mediating effect of innovative climate between transactional leadership and innovative behaviour. Our findings contribute to an improved understanding of how founding CEOs' different leadership styles affect employees' innovative behaviour in start-ups and to what extent the innovative climate influences the relationship.
Research has shown that employees' affective and normative commitment to change (ACC and NCC, respectively) positively influence their behaviors supporting change; however, organizations are frequently unsuccessful in motivating appropriate levels of employee commitment to change. Using longitudinal, multilevel data collected from a large federal government agency implementing radical organizational change, we extend extant research related to antecedents of commitment to change by examining how employees' hierarchical distance (the number of reporting levels between an employee and the top management team) and the transformational leadership of their direct (immediate) manager both relate to their ACC and NCC. We also shed light on important mechanisms that explain these two relationships by examining the mediating role of employees' perceived effectiveness of top management's change-related communications (TMCs), including the top-down and bottom-up components of TMC. Taking advantage of a longitudinal field design, we tested these antecedents of commitment to change at Time 1 and the longitudinal effects of the Time 1 predictors on commitment to change 12 months later (Time 2). At Time 1, findings supported both the predicted direct and mediated effects. Hierarchical distance and perceived TMC remained significant predictors of ACC and NCC over a one-year follow-up period; however, direct managers' transformational leadership behaviors did not. The study extends previous findings related to antecedents of employee commitment to change and also shows the interplay between different levels of leadership in shaping employee affective and normative commitment to radical organizational change.
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