Transformational and Transactional Leadership and Salesperson Performance

Abstract

This study examines the impact of transformational and transactional leader behaviors on the sales performance and organizational citizenship behaviors of salespeople, as well as the mediating role played by trust and role ambiguity in that process. Measures of six forms of transformational leader behavior, two forms of transactional leader behavior, trust, and role ambiguity were obtained from 477 sales agents working for a large national insurance company. Objective sales performance data were obtained for the agents, and their supervisors provided evaluations of their citizenship behaviors. The findings validate not only the basic notion that transformational leadership influences salespeople to perform “above and beyond the call of duty” but also that transformational leader behaviors actually have stronger direct and indirect relationships with sales performance and organizational citizenship behavior than transactional leader behaviors. Moreover, this is true even when common method biases are controlled. The implications of these findings for future research are discussed.

A Theory Based Model of Interpersonal Leadership: An Integration of the Literature

“…The theoretical framework for this study was based on transactional and transformational leadership (MacKenzie, Podsakoff, & Rich, 2001;Podsakoff, Todor, Grover, & Huber, 1984). Leadership management style plays an important role in how a change is received by others.…”

“…Followers' performance is expected to be consistent with their values, as opposed to expecting a reward for their efforts (MacKenzie et al, 2001). Transformational leaders help their followers do this by providing a clear vision for all to follow, being a role model in their behavior, creating group goals, providing individual support and intellectual stimulation to followers, and expecting followers to perform at high levels (MacKenzie et al, 2001).…”

Leadership models and behaviors for sales executives. What drives success and the best results?

“…Sales executives who are perceived by their sales force as transformational leaders positively influence the performance of their sales force (Shannahan et al, 2013;Smith, 2012;Schwepker et al, 2010;MacKenzie et al, 2001). Therefore, it is important for leaders in order to achieve the best results, that their team perceives their leader as a transformational or charismatic leader.…”

“…In the field of sales, several studies have shown that a combination of both leadership styles can achieve the best results. As a successful sales executive, one should be perceived as a transformational executive by one's sales force while still maintaining transactional behavior (Schwepker et al, 2010;MacKenzie et al, 2001). In the following, we will describe the transformational leadership style and the relationship to sales leadership.…”

“…Shannahan et al (2013) proved that sales forces show a better performance if their subordinator is perceived as a transformational leader (Shannahan et al, 2013). Additional studies show that the combination of both leadership styles is an even more effective way to improve the performance of a sales force (Schwepker et al, 2010;MacKenzie et al, 2001). It can be said that most scientists agree that sales executives that are perceived as transformational leaders are more successful in managing a sales force (Shannahan et al, 2013;Smith, 2012;Schwepker et al, 2010;MacKenzie et al, 2001).…”