Leadership in young firms
Project Description
Since firms exist, there is the need to lead employees. The main target in leading employees is the realization of an effective leadership. In the 80ies, Bernhard M. Bass developed the Full-Range-Leadership model and started a new era in the leadership research. The model consists of three different leadership behaviors (laissez-faire, transactional and transformational leadership). Laissez-faire describes a leader who does not take responsibility of his position to lead. Compared with that, transactional leadership is based on an exchange e.g. on a target agreement among leader and employees. Transformational leaders influence employees by compelling visions, personal credibility and change of values.
In the past 20 years, basic conceptual and empirical findings on the Full-Range-Leadership model were developed. Several empirical studies have proven that a positive relationship between transformational and transactional leadership and performance exists. However, the research results at the organizational level are contradictory. Several studies could show a direct link between leadership behavior and the company's performance, while others have failed to support this connection. The differences in the findings can be connected to diverse causes or limitations. Repeatedly postulated, but often neglected, is that leadership success is significantly influenced by the context of the corporate environment.
Addressing this research gap and based on the Full-Range Leadership model, the main objective of this research is an empirical examination of the leadership behavior in young companies. Specifically, the connection between leadership behavior and firm performance will be estimated and empirically evaluated.
In the past 20 years, basic conceptual and empirical findings on the Full-Range-Leadership model were developed. Several empirical studies have proven that a positive relationship between transformational and transactional leadership and performance exists. However, the research results at the organizational level are contradictory. Several studies could show a direct link between leadership behavior and the company's performance, while others have failed to support this connection. The differences in the findings can be connected to diverse causes or limitations. Repeatedly postulated, but often neglected, is that leadership success is significantly influenced by the context of the corporate environment.
Addressing this research gap and based on the Full-Range Leadership model, the main objective of this research is an empirical examination of the leadership behavior in young companies. Specifically, the connection between leadership behavior and firm performance will be estimated and empirically evaluated.
