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

Modern Applied Science; Vol. 12, No. 11; 2018

28 Pages Posted: 31 Dec 2018

See all articles by Dr. Bader Yousef Obeidat

Dr. Bader Yousef Obeidat

University of Jordan

Razan Nofal

University of Jordan - Department of Business Management

Ra'ed Masa'deh

The University of Jordan

Date Written: December 12, 2018

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.

Keywords: transformational leadership, organizational learning capability, entrepreneurial orientation, Jordanian commercial banks

JEL Classification: M

Suggested Citation

Obeidat, Dr. Bader Yousef and Nofal, Razan and Masa'deh, Ra'ed, The Effect of Transformational Leadership on Entrepreneurial Orientation: The Mediating Role of Organizational Learning Capability (December 12, 2018). Modern Applied Science; Vol. 12, No. 11; 2018 , Available at SSRN: https://ssrn.com/abstract=3300274

Dr. Bader Yousef Obeidat (Contact Author)

University of Jordan ( email )

Amman
Jordan

Razan Nofal

University of Jordan - Department of Business Management

Jordan

Ra'ed Masa'deh

The University of Jordan ( email )

The University of Jordan
Jordan
Amman, Amman 11962
Jordan

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