Books and journals Case studies Expert Briefings Open Access
Advanced search

Innovation and intellectual capital as intermediary variables among transformational leadership, transactional leadership, and organizational performance

Ala'aldin Alrowwad (Department of Business Management, The University of Jordan - Aqaba Campus, Aqaba, Jordan)
Shadi Habis Abualoush (Department of Management Information Systems, Irbid National University, Irbid, Jordan)
Ra'ed Masa'deh (Department of Management Information Systems, University of Jordan, Amman, Jordan)

Journal of Management Development

ISSN: 0262-1711

Publication date: 2 March 2020

Abstract

Purpose

The purpose of this paper is to examine the mediating effect of intellectual capital and innovation on the relationship between transformational and transactional leadership and organizational performance in Jordanian banks located in Irbid city.

Design/methodology/approach

A questionnaire that targeted 350 respondents resulted in 298 usable ones with a response rate of 85.14 percent. To test the research hypotheses, a structural equation model was conducted, in addition to descriptive statistics that provided background on the respondents.

Findings

The findings indicate that transformational and transactional leadership relate positively to organizational performance. The results also support the argument that intellectual capital and innovation played mediating roles in transformational and transactional leadership and organizational performance.

Practical implications

The present study provides managers with empirical proof that possessing strong intellectual capital in its three dimensions seems to help the banking sector in Jordan to reinforce their ability to generate both radical and incremental innovation. Also, applying an effective leadership style will motivate and lead to superior performance.

Originality/value

Although papers have shown that leadership style is an important factor influencing employees' performance and outcomes, this is one of the few studies that investigates the interrelationships between leadership styles, intellectual capital, and innovation on organization performance. Furthermore, it is the first to test the model on the banking sector in Jordan.

Keywords

  • Transformational leadership
  • Transactional leadership
  • Intellectual capital
  • Innovation
  • Organizational performance
  • Jordan

Citation

Alrowwad, A., Abualoush, S.H. and Masa'deh, R. (2020), "Innovation and intellectual capital as intermediary variables among transformational leadership, transactional leadership, and organizational performance", Journal of Management Development, Vol. 39 No. 2, pp. 196-222. https://doi.org/10.1108/JMD-02-2019-0062

Download as .RIS

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

Please note you do not have access to teaching notes

You may be able to access teaching notes by logging in via Shibboleth, Open Athens or with your Emerald account.
Login
If you think you should have access to this content, click the button to contact our support team.
Contact us

To read the full version of this content please select one of the options below

You may be able to access this content by logging in via Shibboleth, Open Athens or with your Emerald account.
Login
To rent this content from Deepdyve, please click the button.
Rent from Deepdyve
If you think you should have access to this content, click the button to contact our support team.
Contact us
Emerald Publishing
  • Opens in new window
  • Opens in new window
  • Opens in new window
  • Opens in new window
© 2021 Emerald Publishing Limited

Services

  • Authors Opens in new window
  • Editors Opens in new window
  • Librarians Opens in new window
  • Researchers Opens in new window
  • Reviewers Opens in new window

About

  • About Emerald Opens in new window
  • Working for Emerald Opens in new window
  • Contact us Opens in new window
  • Publication sitemap

Policies and information

  • Privacy notice
  • Site policies
  • Modern Slavery Act Opens in new window
  • Chair of Trustees governance statement Opens in new window
  • COVID-19 policy Opens in new window
Manage cookies

We’re listening — tell us what you think

  • Something didn’t work…

    Report bugs here

  • All feedback is valuable

    Please share your general feedback

  • Member of Emerald Engage?

    You can join in the discussion by joining the community or logging in here.
    You can also find out more about Emerald Engage.

Join us on our journey

  • Platform update page

    Visit emeraldpublishing.com/platformupdate to discover the latest news and updates

  • Questions & More Information

    Answers to the most commonly asked questions here