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Leadership impact on organizational commitment: the mediating role of management control systems choice

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  • Christian Kleine
  • Barbara Weißenberger

Abstract

The notion of organizational commitment has been intensively discussed in many fields of contemporary management research. Current literature in the field of leadership suggests that leadership styles of top management, i.e., CEOs and business unit heads, affect the level of commitment among middle- and lower-level managers. In a parallel vein, scholars in the field of management accounting and control argue that these effects are due to an organization’s management control system. This study is aimed at closing the gap between both strands of literature and examines how leadership and management control systems interact in the process of creating organizational commitment. Building on structural equation modeling, the study extends existing knowledge by analyzing whether the relations between top management’s leadership styles, i.e., initiating structure and consideration, and organizational commitment are mediated by the use of formal and informal management control elements. Based on a sample of 294 German firms, the results suggest that informal control elements, such as personnel and cultural controls, act as hinges through which top management is able to positively transmit leadership behaviors and affect the development of organizational commitment. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Christian Kleine & Barbara Weißenberger, 2014. "Leadership impact on organizational commitment: the mediating role of management control systems choice," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(3), pages 241-266, January.
    • Handle: RePEc:spr:metrik:v:24:y:2014:i:3:p:241-266
    DOI: 10.1007/s00187-013-0181-3
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    5. Jordan Gašper & Miglič Gozdana & Todorović Ivan & Marič Miha, 2017. "Psychological Empowerment, Job Satisfaction and Organizational Commitment Among Lecturers in Higher Education: Comparison of Six CEE Countries," Organizacija, Sciendo, vol. 50(1), pages 17-32, February.
    6. Rogério João Lunkes & Fabricia Silva da Rosa & Januário José Monteiro & Daiane Antonini Bortoluzzi, 2020. "Interactions among Environmental Training, Environmental Strategic Planning and Personnel Controls in Radical Environmental Innovation," Sustainability, MDPI, vol. 12(20), pages 1-13, October.
    7. Cheffi, Walid & Kaleem Zahir-ul-Hassan, Muhammad & Omer Farooq, Muhammad & Baqrain, Abdelrahman & Mohamed Habib Mansour, Mourad, 2023. "Ethical leadership, management control systems and circular economy in SMEs in an emerging economy, the UAE," Journal of Business Research, Elsevier, vol. 156(C).
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    More about this item

    Keywords

    Leadership styles; Management control systems; Organizational commitment; Structural equation modeling; M10; M40;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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