Research Article
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Review of Leadership Styles in Perspective of Dynamic Capabilities: An Empirical Research on Managers in Manufacturing Firms

Year 2020, Volume: 18 Issue: 36, 389 - 407, 23.03.2020
https://doi.org/10.35408/comuybd.681427

Abstract

Firms need to adapt to
changes in both their internal and external environments and create new systems
that let them focus on new trends, identify improvements, try to guess their
potential impact on their management and manufacturing system.  They try to learn quickly how to implement
changes to their standard operating procedures. A wide range of factors affects
this procedure. To achieve this, they should be managed by modern leaders. The
purpose of this research is to investigate the leadership dimensions and a
related framework for assessing leadership styles, in relation to the context
in which the leader works in dynamic environment. Furthermore, the purpose of
this study was to examine the relative impact of different types of leadership
on firms’ dynamic capabilities. Research is reported on data from a large
sample of leaders and managers (n 214) from a range of private manufacturing
organizations in West of Turkey. Content analyses, one of the methods of  quality analysis,  and
MAXMaps were performed in context of top-down &bottom-up confirmation
method. SPSS and Maxqda analyses program was used to analyze data. The
results show that agile and transformational leaders can enhance firms’ dynamic
capabilities indirectly or indirectly by creating an organizational atmosphere
where employees and followers are encouraged, motivated, inspired to be a role
model, open to change, and innovation. However, it was found that the link
between dynamic capabilities of a firm and hubristic and autocratic leadership
was slightly positive.

References

  • Alsudairy, M. A. T., & Vasista, T. G. K. (2014, May). CRASP—a strategic methodology perspective for sustainable value chain management. In Proceedings of the 23rd IBIMA Conference.
  • Avolio, B. J. (1999). Full leadership development: Building the vital forces in organizations. Sage.
  • Bass, B. M. (1985). Leadership: Good, better, best. Organizational dynamics, 13(3), 26-40. Waldman, D. A., Bass, B. M., & Yammarino, F. J. (1990). Adding to contingent-reward behavior: The augmenting effect of charismatic leadership. Group & Organization Studies, 15(4), 381-394.
  • Bass, B. M. (1990). Bass and Stogdill’s handbook of leadership: Theory, research and managerial applications. New York: Free Press.
  • Bass, B. M. (1997). Does the transactional–transformational leadership paradigm transcend organizational and national boundaries?. American psychologist, 52(2), 130-139.
  • Bass, B. M. (1998). Transformational leadership: Industry, military, and educational impact. Mahwah, NJ: Erlbaum.
  • Bass, B. M., & Avolio, B. J. (1994). Shatter the glass ceiling: Women may make better managers. Human resource management, 33(4), 549-560.
  • Bass, B. M., & Avolio, B. J. (2002). Developing leadership across a full range of leadership. Human Resource Management Journal, 41, 507-509.
  • Bezci, H. İ.(2015) Dinamik Kabiliyetlere Sahip İşletmelerin İnovasyon Hızı, Gebze Teknik Üniversitesi, Sosyal Bilimler Enstitüsü, GEBZE, KOCAELİ
  • Bhatti, N., Maitlo, G. M., Shaikh, N., Hashmi, M. A., & Shaikh, F. M. (2012). The impact of autocratic and democratic leadership style on job satisfaction. International Business Research, 5(2), 192-201.
  • Bonner, N. A. (2010). Predicting Leadership Success in Agile Environments: An Inquiring Systems Approach. Academy of Information & Management Sciences Journal, 13(2).
  • Cartwright, D., & Zander, A. (1968). Group dynamics: Theory and research. New York: Harper & Row.
  • Carver, C. S., Sinclair, S., & Johnson, S. L. (2010). Authentic and hubristic pride: Differential relations to aspects of goal regulation, affect, and self-control. Journal of Research in Personality, 44, 698–703
  • Chen, Y. S., & Chang, C. H. (2013). The determinants of green product development performance: Green dynamic capabilities, green transformational leadership, and green creativity. Journal of business ethics, 116(1), 107-119.
  • Clark, W. W. (2007). Partnerships in creating agile sustainable development communities. Journal of Cleaner Production, 15(3), 294-302.
  • Claxton, G., Owen, D., & Sadler-Smith, E. (2015). Hubris in leadership: A peril of unbridled intuition?. Leadership, 11(1), 57-78.
  • Collingwood, H. (2001). Personal histories. Harvard Business Review, 27-38.
  • Conger, J. A., Kanungo, R. N., Menon, S. T., & Mathur, P. (1997). Measuring charisma: dimensionality and validity of the Conger‐Kanungo scale of charismatic leadership. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration, 14(3), 290-301.
  • De Cremer, D. (2006). Affective and motivational consequences of leader self-sacrifice: The moderating effect of autocratic leadership. The Leadership Quarterly, 17(1), 79-93.
  • Dittrich, Y., Pries-Heje, J., & Hjort-Madsen, K. (2005, May). How to Make Government Agile to Cope with Organizational Change. In IFIP International Working Conference on Business Agility and Information Technology Diffusion (pp. 333-351). Springer, Boston, MA.
  • Dixon, S. E., Meyer, K. E., & Day, M. (2010). Stages of organizational transformation in transition economies: A dynamic capabilities approach. Journal of Management Studies, 47(3), 416-436.
  • Dulewicz, V., & Higgs, M. (2005). Assessing leadership styles and organisational context. journal of Managerial Psychology, 20(2), 105-123.
  • García-Morales, V. J., Jiménez-Barrionuevo, M. M., & Gutiérrez-Gutiérrez, L. (2012). Transformational leadership influence on organizational performance through organizational learning and innovation. Journal of business research, 65(7), 1040-1050.
  • Gastil, J. (1994). A definition and illustration of democratic leadership. Human Relations, 47(8), 953-975.
  • Hayward MLA and Hambrick DC (1997) Explaining the premiums paid for large acquisitions: Evidence of CEO hubris. Administrative Science Quarterly 42: 103–127
  • Higgs, M., & Rowland, D. (2001). Developing change leaders: Assessing the impact of a development programme. Journal of Change Management, 2(1), 47-64.
  • Highsmith, J. R. (2009). Agile project management: creating innovative products. Pearson Education.
  • Hogan, R. (2002). Leadership: What do we know. Presentation for MDC, New Zealand.
  • Hunt, J. G., Boal, K. B., & Dodge, G. E. (1999). The effects of visionary and crisis-responsive charisma on followers: An experimental examination of two kinds of charismatic leadership. The Leadership Quarterly, 10(3), 423-448.
  • Joiner, B., & Josephs, S. (2007). Developing agile leaders. Industrial and commercial training, 39(1), 35-42.
  • Kara, M., Kara, D., & Kara, P. (2017). The Effects Of Gender, Age, Income And Tv Watching Duration On The Consumers Purchasing Decisions. Journal of International Scientific Publications: Economy & Business, 11(1), 443-457.
  • Kouzes, J. M., & Posner, B. Z. (1999). Encouraging the heart: A leader's guide to rewarding and recognizing others (Vol. 133). John Wiley & Sons.
  • Lees, K. A. (1995). Advancing democratic leadership through critical theory. Journal of School Leadership, 5(3), 220-230.
  • Li J and Tang Y (2010) CEO hubris and firm risk taking in China: The moderating role of managerial discretion. Academy of Management Journal 53(1): 45–68.
  • Mergel, I., Gong, Y., & Bertot, J. (2018). Agile government: Systematic literature review and future research. 35, 291–298.
  • Parker, R. I., & Vannest, K. J. (2012). Bottom-up analysis of single-case research designs. Journal of Behavioral Education, 21(3), 254-265.
  • Peterson, R. S. (1997). A directive leadership style in group decision making can be both virtue and vice: Evidence from elite and experimental groups. Journal of Personality and Social Psychology, 72(5), 1107-1121.
  • Raelin, J. A. (2012). Dialogue and deliberation as expressions of democratic leadership in participatory organizational change. Journal of Organizational Change Management.
  • Russell G (2011) Psychiatry and politicians: The ‘Hubris Syndrome’. The Psychiatrist 35: 140–145.
  • Sadler-Smith, E., Akstinaite, V., Robinson, G., & Wray, T. (2017). Hubristic leadership: A review. Leadership, 13(5), 525-548.
  • Sadler-Smith, E., Robinson, G., Akstinaite, V., & Wray, T. (2018). Hubristic leadership: Understanding the hazard and mitigating the risks. Organizational Dynamics.
  • Shipman, A. S., & Mumford, M. D. (2011). When confidence is detrimental: Influence of overconfidence on leadership effectiveness. The Leadership Quarterly, 22(4), 649-665.
  • Tayşir, E. A., & Pazarcık, Y. (2013). Business ethics, social responsibility and corporate governance: Does the strategic management field really care about these concepts?. Procedia-Social and Behavioral Sciences, 99, 294-303.
  • Teece, D. (2007), “Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance”, Strategic Management Journal, Vol. 28 No. 13, pp. 1319–1350.
  • Teece, D. J. (2012). Dynamic capabilities: Routines versus entrepreneurial action. Journal of management studies, 49(8), 1395-1401.
  • Teece, D. J. (2016). Dynamic capabilities and entrepreneurial management in large organizations: Toward a theory of the (entrepreneurial) firm. European Economic Review, 86, 202-216.
  • Tracy, J. L., Cheng, J. T., Robins, R. W., & Trzesniewski, K. H. (2009). Authentic and hubristic pride: The affective core of self-esteem and narcissism. Self and Identity, 8, 196–21
  • Weick, K. E. (1995). Sense making in organizations (Vol. 3). Sage, London
  • Yukl, G. (1999). An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. The leadership quarterly, 10(2), 285-305.

Review of Leadership Styles in Perspective of Dynamic Capabilities: An Empirical Research on Managers in Manufacturing Firms

Year 2020, Volume: 18 Issue: 36, 389 - 407, 23.03.2020
https://doi.org/10.35408/comuybd.681427

Abstract

Firms need to adapt to changes in both their internal and external environments and create new systems that let them focus on new trends, identify improvements, try to guess their potential impact on their management and manufacturing system. They try to learn quickly how to implement changes to their standard operating procedures. A wide range of factors affects this procedure. To achieve this, they should be managed by modern leaders. The purpose of this research is to investigate the leadership dimensions and a related framework for assessing leadership styles, in relation to the context in which the leader works in dynamic environment. Furthermore, the purpose of this study was to examine the relative impact of different types of leadership on firms’ dynamic capabilities. Research is reported on data from a large sample of leaders and managers (n 214) from a range of private manufacturing organizations in West of Turkey. Content analyses, one of the methods of quality analysis, and MAXMaps were performed in context of top-down &bottom-up confirmation method. SPSS and Maxqda analyses program was used to analyze data. The results show that agile and transformational leaders can enhance firms’ dynamic capabilities indirectly or indirectly by creating an organizational atmosphere where employees and followers are encouraged, motivated, inspired to be a role model, open to change, and innovation. However, it was found that the link between dynamic capabilities of a firm and hubristic and autocratic leadership was slightly positive.

References

  • Alsudairy, M. A. T., & Vasista, T. G. K. (2014, May). CRASP—a strategic methodology perspective for sustainable value chain management. In Proceedings of the 23rd IBIMA Conference.
  • Avolio, B. J. (1999). Full leadership development: Building the vital forces in organizations. Sage.
  • Bass, B. M. (1985). Leadership: Good, better, best. Organizational dynamics, 13(3), 26-40. Waldman, D. A., Bass, B. M., & Yammarino, F. J. (1990). Adding to contingent-reward behavior: The augmenting effect of charismatic leadership. Group & Organization Studies, 15(4), 381-394.
  • Bass, B. M. (1990). Bass and Stogdill’s handbook of leadership: Theory, research and managerial applications. New York: Free Press.
  • Bass, B. M. (1997). Does the transactional–transformational leadership paradigm transcend organizational and national boundaries?. American psychologist, 52(2), 130-139.
  • Bass, B. M. (1998). Transformational leadership: Industry, military, and educational impact. Mahwah, NJ: Erlbaum.
  • Bass, B. M., & Avolio, B. J. (1994). Shatter the glass ceiling: Women may make better managers. Human resource management, 33(4), 549-560.
  • Bass, B. M., & Avolio, B. J. (2002). Developing leadership across a full range of leadership. Human Resource Management Journal, 41, 507-509.
  • Bezci, H. İ.(2015) Dinamik Kabiliyetlere Sahip İşletmelerin İnovasyon Hızı, Gebze Teknik Üniversitesi, Sosyal Bilimler Enstitüsü, GEBZE, KOCAELİ
  • Bhatti, N., Maitlo, G. M., Shaikh, N., Hashmi, M. A., & Shaikh, F. M. (2012). The impact of autocratic and democratic leadership style on job satisfaction. International Business Research, 5(2), 192-201.
  • Bonner, N. A. (2010). Predicting Leadership Success in Agile Environments: An Inquiring Systems Approach. Academy of Information & Management Sciences Journal, 13(2).
  • Cartwright, D., & Zander, A. (1968). Group dynamics: Theory and research. New York: Harper & Row.
  • Carver, C. S., Sinclair, S., & Johnson, S. L. (2010). Authentic and hubristic pride: Differential relations to aspects of goal regulation, affect, and self-control. Journal of Research in Personality, 44, 698–703
  • Chen, Y. S., & Chang, C. H. (2013). The determinants of green product development performance: Green dynamic capabilities, green transformational leadership, and green creativity. Journal of business ethics, 116(1), 107-119.
  • Clark, W. W. (2007). Partnerships in creating agile sustainable development communities. Journal of Cleaner Production, 15(3), 294-302.
  • Claxton, G., Owen, D., & Sadler-Smith, E. (2015). Hubris in leadership: A peril of unbridled intuition?. Leadership, 11(1), 57-78.
  • Collingwood, H. (2001). Personal histories. Harvard Business Review, 27-38.
  • Conger, J. A., Kanungo, R. N., Menon, S. T., & Mathur, P. (1997). Measuring charisma: dimensionality and validity of the Conger‐Kanungo scale of charismatic leadership. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration, 14(3), 290-301.
  • De Cremer, D. (2006). Affective and motivational consequences of leader self-sacrifice: The moderating effect of autocratic leadership. The Leadership Quarterly, 17(1), 79-93.
  • Dittrich, Y., Pries-Heje, J., & Hjort-Madsen, K. (2005, May). How to Make Government Agile to Cope with Organizational Change. In IFIP International Working Conference on Business Agility and Information Technology Diffusion (pp. 333-351). Springer, Boston, MA.
  • Dixon, S. E., Meyer, K. E., & Day, M. (2010). Stages of organizational transformation in transition economies: A dynamic capabilities approach. Journal of Management Studies, 47(3), 416-436.
  • Dulewicz, V., & Higgs, M. (2005). Assessing leadership styles and organisational context. journal of Managerial Psychology, 20(2), 105-123.
  • García-Morales, V. J., Jiménez-Barrionuevo, M. M., & Gutiérrez-Gutiérrez, L. (2012). Transformational leadership influence on organizational performance through organizational learning and innovation. Journal of business research, 65(7), 1040-1050.
  • Gastil, J. (1994). A definition and illustration of democratic leadership. Human Relations, 47(8), 953-975.
  • Hayward MLA and Hambrick DC (1997) Explaining the premiums paid for large acquisitions: Evidence of CEO hubris. Administrative Science Quarterly 42: 103–127
  • Higgs, M., & Rowland, D. (2001). Developing change leaders: Assessing the impact of a development programme. Journal of Change Management, 2(1), 47-64.
  • Highsmith, J. R. (2009). Agile project management: creating innovative products. Pearson Education.
  • Hogan, R. (2002). Leadership: What do we know. Presentation for MDC, New Zealand.
  • Hunt, J. G., Boal, K. B., & Dodge, G. E. (1999). The effects of visionary and crisis-responsive charisma on followers: An experimental examination of two kinds of charismatic leadership. The Leadership Quarterly, 10(3), 423-448.
  • Joiner, B., & Josephs, S. (2007). Developing agile leaders. Industrial and commercial training, 39(1), 35-42.
  • Kara, M., Kara, D., & Kara, P. (2017). The Effects Of Gender, Age, Income And Tv Watching Duration On The Consumers Purchasing Decisions. Journal of International Scientific Publications: Economy & Business, 11(1), 443-457.
  • Kouzes, J. M., & Posner, B. Z. (1999). Encouraging the heart: A leader's guide to rewarding and recognizing others (Vol. 133). John Wiley & Sons.
  • Lees, K. A. (1995). Advancing democratic leadership through critical theory. Journal of School Leadership, 5(3), 220-230.
  • Li J and Tang Y (2010) CEO hubris and firm risk taking in China: The moderating role of managerial discretion. Academy of Management Journal 53(1): 45–68.
  • Mergel, I., Gong, Y., & Bertot, J. (2018). Agile government: Systematic literature review and future research. 35, 291–298.
  • Parker, R. I., & Vannest, K. J. (2012). Bottom-up analysis of single-case research designs. Journal of Behavioral Education, 21(3), 254-265.
  • Peterson, R. S. (1997). A directive leadership style in group decision making can be both virtue and vice: Evidence from elite and experimental groups. Journal of Personality and Social Psychology, 72(5), 1107-1121.
  • Raelin, J. A. (2012). Dialogue and deliberation as expressions of democratic leadership in participatory organizational change. Journal of Organizational Change Management.
  • Russell G (2011) Psychiatry and politicians: The ‘Hubris Syndrome’. The Psychiatrist 35: 140–145.
  • Sadler-Smith, E., Akstinaite, V., Robinson, G., & Wray, T. (2017). Hubristic leadership: A review. Leadership, 13(5), 525-548.
  • Sadler-Smith, E., Robinson, G., Akstinaite, V., & Wray, T. (2018). Hubristic leadership: Understanding the hazard and mitigating the risks. Organizational Dynamics.
  • Shipman, A. S., & Mumford, M. D. (2011). When confidence is detrimental: Influence of overconfidence on leadership effectiveness. The Leadership Quarterly, 22(4), 649-665.
  • Tayşir, E. A., & Pazarcık, Y. (2013). Business ethics, social responsibility and corporate governance: Does the strategic management field really care about these concepts?. Procedia-Social and Behavioral Sciences, 99, 294-303.
  • Teece, D. (2007), “Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance”, Strategic Management Journal, Vol. 28 No. 13, pp. 1319–1350.
  • Teece, D. J. (2012). Dynamic capabilities: Routines versus entrepreneurial action. Journal of management studies, 49(8), 1395-1401.
  • Teece, D. J. (2016). Dynamic capabilities and entrepreneurial management in large organizations: Toward a theory of the (entrepreneurial) firm. European Economic Review, 86, 202-216.
  • Tracy, J. L., Cheng, J. T., Robins, R. W., & Trzesniewski, K. H. (2009). Authentic and hubristic pride: The affective core of self-esteem and narcissism. Self and Identity, 8, 196–21
  • Weick, K. E. (1995). Sense making in organizations (Vol. 3). Sage, London
  • Yukl, G. (1999). An evaluation of conceptual weaknesses in transformational and charismatic leadership theories. The leadership quarterly, 10(2), 285-305.
There are 49 citations in total.

Details

Primary Language English
Journal Section Research Article
Authors

Bülent Akkaya 0000-0003-1252-9334

Publication Date March 23, 2020
Submission Date January 28, 2020
Published in Issue Year 2020 Volume: 18 Issue: 36

Cite

APA Akkaya, B. (2020). Review of Leadership Styles in Perspective of Dynamic Capabilities: An Empirical Research on Managers in Manufacturing Firms. Yönetim Bilimleri Dergisi, 18(36), 389-407. https://doi.org/10.35408/comuybd.681427

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