Leaders are exhorted to espouse vision, but little is known about how vision is used by leaders in
INTRODUCTIONhe Australian retail industry is an industry of change with a dynamic and constantly evolving environment. Since 1998, strong consumer spending had produced booming sales and profits for retailers (Australian Centre for Retail Studies, 2006). However, a slowing market, an interest rate rise, and higher petrol prices brought about difficult trading conditions in 2005 (Australian Centre for Retail Studies, 2006). The retail slowdown in 2005 has placed on a number of businesses with many companies being acquired by larger retailers. There are also a number of challenges facing Australian retailers, including new retail formats, heavy discounting by major retailers, declines in the property market, high petrol prices, rising retail rents, and shortages of retail staff (Australian Centre for Retail Studies, 2006). Following the collapse of financial markets and rapid deterioration of the global economy through late 2008, 2009 has been the most difficult year in decades for Australian retail businesses (ANZ Industry Outlook, 2009). In such a challenging and constantly changing retail context, what kind of leadership is needed for Australian retail organizations, particularly smaller ones, to survive and remain competitive? To many writers, leadership with vision as a core component is the answer, with promulgating a vision frequently being seen as one of the essential tasks that top organizational leaders perform (Kantabutra, 2010). In response to the increasing pace of change, vision-based leaders prepare for future actions by creating a sense of urgency towards change, formulating and communicating vision to their followers (Kotter, 1996). This paper presents the results of a study examining hypothesized relationships between store manager passion, motivation of staff, use of vision as a guide among staff, and leadership outcomes of staff and customer satisfaction. Predictions were tested in Australian apparel stores, and the outcomes are presented and discussed below. Managerial implications and future research directions are also discussed.
VISIONClearly, the importance of vision has been emphasized by leadership scholars in both theoretical discussions and research (Kantabutra, 2010). There is no doubt that many leadership scholars have seen vision as