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The Effect of Transformational Leadership on Entrepreneurial Orientation: The Mediating Role of Organizational Learning Capability

Author

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  • Bader Obeidat
  • Razan Nofal
  • Ra’ed Masa’deh

Abstract

This study aims to investigate the effect of transformational leadership on entrepreneurial orientation in Jordanian commercial banks, and whether organizational learning capability mediates the effect of transformational leadership on entrepreneurial orientation. Adopting a quantitative research design, data were collected by means of a questionnaire-based survey of employees in Jordanian commercial banks. Based on 330 usable responses, the results revealed the significant effect of transformational leadership and two of its dimensions (inspirational motivation and intellectual stimulation) on entrepreneurial orientation. Two other dimensions (idealized influence and individualized consideration) did not contribute to entrepreneurial orientation. Additionally, the results showed that transformational leadership has a significant effect on organizational learning capability, and that organizational learning capability in turn affects entrepreneurial orientation. The findings confirm that organizational learning capability fully mediates the effect of transformational leadership on entrepreneurial orientation. A number of recommendations are advanced, the most important of which is that banks should improve and develop managers’ transformational attributes by training them on how to deal with employees in order to increase their entrepreneurial orientation. Banks should also consider improving their learning capability, as this plays a significant role in enhancing and supporting the effect of transformational leadership attributes on entrepreneurial orientation.

Suggested Citation

  • Bader Obeidat & Razan Nofal & Ra’ed Masa’deh, 2018. "The Effect of Transformational Leadership on Entrepreneurial Orientation: The Mediating Role of Organizational Learning Capability," Modern Applied Science, Canadian Center of Science and Education, vol. 12(11), pages 1-77, November.
    • Handle: RePEc:ibn:masjnl:v:12:y:2018:i:11:p:77
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    References listed on IDEAS

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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