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Inclusive leadership and team climate: the role of team power distance and trust in leadership

Ibrahim Oluwapelumi Orekoya (Department of Entrepreneurship and Strategy, Management School, Lancaster University, Lancaster, UK)

Leadership & Organization Development Journal

ISSN: 0143-7739

Article publication date: 7 November 2023

Issue publication date: 5 February 2024

1935

Abstract

Purpose

The purpose of this paper is to investigate the effect of inclusive leadership on team climate. Drawing on the social exchange theory (SET), this study proposes a theoretical model in which (1) inclusive leadership enhances team climate, (2) the moderating effect of team power distance and trust in leadership in the relationship between inclusive leadership and team climate.

Design/methodology/approach

A quantitative research method was applied, with a survey of 247 Nigerian employees nested in 59 teams in multiple small manufacturing firms across diverse industries widely distributed into textile, furniture, bakery and palm oil production firms. The partial least square structural equation modelling was used to test the study's proposed hypotheses.

Findings

The results revealed that inclusive leadership has a positive and direct effect on team climate. Also, this study found that (1) team power distance positively influences the relationship between inclusive leadership and team climate; and (2) trust in leadership positively influences the relationship between inclusive leadership and team climate.

Research limitations/implications

This study affirms the explanatory power of SET to investigate inclusive leadership and team climate at the team level. Also, the study utilised the SET to confirm the significance and value of team power distance and trust in leadership in the relationship between inclusive leadership and team climate at the team level in the Nigerian context.

Practical implications

The paper examined the relationship between inclusive leadership and team climate with team power distance and trust in leadership as moderators. The findings suggest that inclusive leadership play a paramount role in understanding team climate among small manufacturing firms. Moreover, the findings can be applied in organisations by creating different assessment mechanisms, e.g. webinars and training sessions, to encourage effective inclusive leadership behaviours in fostering a team climate for creativity and innovation.

Originality/value

The main contribution of this current research to knowledge is on the examination of the distinctive leadership style that influences team climate. The study indicates that when team members are allowed to fully contribute to the team, inclusion is promoted among group members, and trust in leadership is strengthened, which increases their perception of team climate within organisations.

Keywords

Acknowledgements

This research was supported by the author’s Lancaster University Management School Doctoral Studentship Award. The author also thanks Olufunmilola (Lola) Dada and Danny Soetanto for their guidance and supervision in writing this article.

Citation

Orekoya, I.O. (2024), "Inclusive leadership and team climate: the role of team power distance and trust in leadership", Leadership & Organization Development Journal, Vol. 45 No. 1, pp. 94-115. https://doi.org/10.1108/LODJ-03-2023-0142

Publisher

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Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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