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In this study the Core4 model is proposed as a new model of leader behaviour.

Two independent samples were used to test the construct validity of this model in comparison to a seven-factor transformational/transactional leadership model. Next, convergent and discriminant validity of the Core4 model were examined. The Core4 Leadership Questionnaire was also tested for multigroup invariance. Predictive validity of the Core4 model was compared to that of a transformational/transactional model.

Results showed that the Core4 model better fitted the data than the transformational/transactional model. A seven-factor transformational/transactional model could not be established. The findings supported convergent and discriminant validity. The Core4 Leadership Questionnaire was not completely invariant across manufacturing and service organisations, but seems appropriate for application in different environments. The Core4 model was more strongly related to the criterion variables than a four-factor transformational/transactional leadership model.

This research shows that the Core4 model offers a valid alternative for the transformational/transactional model of leader behaviour.

The purpose of this paper is to investigate whether the generally positive impact of transformational leadership on organizational commitment in large organizations can be extended to small- and medium-sized businesses (SMEs) in the manufacturing and service industry. The authors investigate the possible moderator effects of a participative and directive leadership style.

The collected data from 588 employees who rated 93 supervisors within 35 Dutch SMEs in both manufacturing and service industry. The authors analyse the nested data by means of multilevel modelling.

Transformational leadership, defined as visionary leadership and development stimulation, was positively related to organizational commitment for service SMEs, but not for manufacturing SMEs. While a participative leadership style did not moderate the relationship between transformational leadership and organizational commitment in either industry, a directive leadership style strengthened the relationship between transformational leadership and organizational commitment in manufacturing SMEs.

Leaders in the service industry SMEs should engage in transformational leadership, whereas leaders in manufacturing industry SMEs should engage in other types of leadership. Future research should examine effective leadership in manufacturing.

As the results of this study suggest, a distinction should be made between manufacturing and service industry. The advice therefore needs to be twofold. Supervisors in manufacturing SMEs can best improve employees’ organizational commitment by intensifying transformational leader behaviour combined with a directive decision style. Supervisors in service SMEs do not have to combine transformational leader behaviour with a particular leader decision style, if they wish to be more effective.

Demonstrating transformational leader behaviour can be successful in both manufacturing and service SMEs. However, in manufacturing companies this will only be effective when combined with a directive leader decision style.

Although SMEs most of the time are considered as one similar group in comparison to large organizations, the authors follow Hughes and Wood (1999; see also Stonehouse and Pemberton, 2002) who argue that because of their different products, customers, and labour it is important to disaggregate research on SMEs and differentiate between manufacturing and service SMEs.

The purpose of this paper is to investigate the relationship between transformational and transactional leadership, and labour flexibility within small to medium‐sized enterprises (SMEs). Using a sample comprising 755 employees, rating 121 supervisors within 50 Dutch small and medium‐sized companies, the authors examined the relationship between transformational and transactional leadership on the one hand, and temporal and functional flexibility on the other. Further, to test whether the expected associations could be perceived as a social exchange between supervisor and employees, this study investigated the mediating role of affective organisational commitment.

Because data were nested, the authors used multilevel analysis for hypothesis testing.

Both dimensions of transformational leadership, visionary leadership and coaching, were positively related to temporal flexibility; also two dimensions of transactional leadership, contingent reward and active management by exception, were also positively associated with temporal flexibility. All of these associations were mediated by affective organisational commitment, indicating social exchange relationships. As opposed to expectations, passive management by exception, representing poor transactional leadership, was positively related to temporal and functional flexibility. Affective commitment did not mediate these relationships.

SMEs are therefore advised to improve visionary leadership, coaching skills, contingent reward, and active management by exception.

The paper shows that, remarkably, labour flexibility can be increased by both effective and poor leadership. On the one hand, effective leadership seems to promote temporal flexibility by creating employees’ commitment to the organisation. Poor leadership, on the other hand, does not call for people's affective commitment and thus seems to be forcing employees into demonstrating flexible behaviours, as a way of compensating for bad management.