MODERATING ROLE OF TECHNOLOGY ON THE RELATIONSHIP BETWEEN LEADERSHIP AND ORGANIZATIONAL PERFORMANCE
Abstract
Statement of the Problem: Leadership plays a critical role in developing interactions and relationships towards more effective performance at the organizational level. Organizations competing in the modern environment are focusing on the factors that increase performance and their competitive edge. Increased global and regional competitions have led firms to determine to create or sustain competitive edge by adopting breakthrough modern technologies. A fast-changing environment with constant abrupt changes makes it indispensable for firms to build up their technological ambidexterity by embracing the digital technologies. Today governmental and private organizations intend to enhance their service quality and this can only be achieved by adopting a suitable leadership in moving towards knowledge and technology advancement. Energy sector has also benefited immensely from the emerging digital technologies to facilitating efficiency in grid operation in the renewable energy.
Methodology: The study was anchored on the contingency theory and supported by Diffusion of innovation (DOI) theory. This study employed a cross-sectional survey design. The study population consisted of 68 institutions under the energy sector. These 68 institutions formed the target population for the study. The study used primary data. Primary data was obtained from the selected respondents using structured questionnaires. Descriptive analysis was used to analyze quantitative data through tabulations, percentages, and measure of central tendency.
Results: The study revealed a statistically significant relationship between leadership and organizational performance. Technology was found to moderate the relationship between leadership and organizational performance. The introduction of technology had an enhancing moderating effect on the relationship between leadership and performance.
Conclusion and Recommendation: The study concluded that managers in the energy sector should consider adoption of digital technology since they are very instrumental in optimization of the operations of an increasingly complex power system based on renewable energy. The paper recommends that managers in the energy sector should consider adoption of emerging technologies and digital technology since they are instrumental in optimization of efficiency in the operations and maintenance process and increasingly complex power system based on renewable energy.
Keywords: Leadership, Organizational Performance, Technology, Innovation, Digital Technology
References
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Aral, S., & Weill, P. (2007). IT assets, organizational capabilities, and firm performance: How resource allocations and organizational differences explain performance variation. Organization science, 18(5), 763-780.
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Arslan, A., & Staub, S. (2013). Theory X and theory Y type leadership behavior and its impact on organizational performance: Small business owners in the Şishane Lighting and Chandelier District. Procedia-social and behavioral sciences, 75, 102-111.
Asikhia, O. A., Magaji, N., & Muritala, A. S. (2019). Technological intelligence and organizational performance: moderating role of process innovation. Open Journal of Economics and Commerce, 2(1), 25-31.
Atmojo, M. (2015). The influence of transformational leadership on job satisfaction, organizational commitment, and employee performance. International research journal of business studies, 5(2).
Avci, U., Madanoglu, M., & Okumus, F. (2011). Strategic orientation and performance of tourism firms: Evidence from a developing country. Tourism Management, 32(1), 147-157.
Boal, K. B., & Hooijberg, R. (2000). Strategic leadership research: Moving on. The Leadership Quarterly, 11(4), 515-549.
Braun, S., Peus, C., Weisweiler, S., & Frey, D. (2013). Transformational leadership, job satisfaction, and team performance: A multilevel mediation model of trust. The leadership quarterly, 24(1), 270-283.
Charry, K. (2012). Leadership Theories-8 Major Leadership Theories. Retrieved from http:// psychology. about. com/od/leadership/p/leadtheories. htm.
Chen, X. P., Eberly, M. B., Chiang, T. J., Farh, J. L., & Cheng, B. S. (2014). Affective trust in Chinese leaders: Linking paternalistic leadership to employee performance. Journal of management, 40(3), 796-819.
Cheng, C. C., Yang, C. L., & Sheu, C. (2014). The link between eco-innovation and business performance: a Taiwanese industry context. Journal of cleaner production, 64, 81-90.
Christensen, C., & Raynor, M, (2003). The innovator’s solution. Boston, MA: Harvard Business School.
Danişman, Ş., Tosuntaş, Ş. B., & Karadağ, E. (2015). The effect of leadership on organizational performance. In Leadership and organizational outcomes (pp. 143-168). Springer, Cham.
Ebrahimi, P., Moosavi, S. M., & Chirani, E. (2016). Relationship between leadership styles and organizational performance by considering innovation in manufacturing companies of Guilan Province. Procedia-Social and Behavioral Sciences, 230, 351-358.
Fiedler, F. E. (1964). A contingency model of leadership effectiveness. In Advances in experimental social psychology, 1, 149-190.
Fiedler, F. E. (2006). The contingency model: A theory of leadership effectiveness. Small groups: Key readings, 369, 60051-9.
Flocy, J. (2017). Responsible leadership: A behavioural perspective. Singapore Management University (Singapore).
García-Sánchez, E., García-Morales, V. J., & Martín-Rojas, R. (2018). Influence of technological assets on organizational performance through absorptive capacity, organizational innovation and internal labour flexibility. Sustainability, 10(3), 770.
Habes, M., Alghizzawi, M., Ali, S., SalihAlnaser, A., & Salloum, S. A. (2020). The Relation among Marketing ads, via Digital Media and mitigate (COVID-19) pandemic in Jordan. International Journal of Advanced Science and Technology, 29(7), 12326-12348.
Harsh, H., & Prasad, A. (2020). Employment relations and perceived organizational performance: the moderating role of technological intensity. Employee Relations: The International Journal, 43 (1), 109-130.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2001). Strategic management: competitiveness and globalization, Cincinnati. Ohio: South-Western College Pub.
Hjort, J., & Poulsen, J. (2019). The arrival of fast internet and employment in Africa. American Economic Review, 109(3), 1032-79.
Ibrahim, A. U., & Daniel, C. O. (2019). Impact of leadership on organisational performance. International Journal of Business, Management and Social Research, 6(2), 367-374.
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Kaplan, R. S., & Norton, D. P. (2001). Transforming the balanced scorecard from performance measurement to strategic management: Part II. Accounting horizons, 15(2), 147-160.
Karada, E. (2015). Leadership and organizational outcomes: Meta-analysis of empirical studies. Eskisehir: Springer International Publishing, 1-273.
Keshtkar, M. M., & Nezad, S. (2018). Investigation of effective parameters on entropy generation in a square electronic package. Frontiers in Heat and Mass Transfer (FHMT), 10.
Kraft, M. H. G. (2018). Antecedents & perspectives of ambidextrous leadership. Marketing and Management of Innovations, 4, 5-13.
Lamb, R. (2013). How can Managers Use Participative Leadership Effectively? Retrieved March 17, 2014, from http://www.task.fm/participative-leadership.
Lear, L. W. (2012). The relationship between strategic leadership and strategic alignment in high-performance companies in South Africa.
Libert, B., Beck, M., & Wind, Y. (2016). Questions to ask before your next digital transformation. Harv. Bus. Rev, 60(12), 11-13.
Maharani, V., Troena, E. A., & Noermijati, N. (2013). Organizational citizenship behavior role in mediating the effect of transformational leadership, job satisfaction on employee performance: Studies in PT bank Syariah Mandiri Malang east Java. International Journal of Business and Management, 8(17), 1-12.
Markus, M. L., & Loebbecke, C. (2013). Commoditized digital processes and business community platforms: New opportunities and challenges for digital business strategies. Mis Quarterly, 37(2), 649-653.
Mehrabi, J., Roozbehani, M. T., Naseri, S., & Samangooei, B. (2012). Impact of Leadership Development on Employees' Performance. International Journal of Business, Humanities and Technology, 2(5).
Meindl, J. R., Ehrlich, S. B., & Dukerich, J. M. (1985). The romance of leadership. Administrative science quarterly, 78-102.
Mirkamali, S. M., Thani, F. N., & Alami, F. (2011). Examining the role of transformational leadership and job satisfaction in the organizational learning of an automotive manufacturing company. Procedia-Social and Behavioral Sciences, 29, 139-148.
Moore, G. C., & Benbasat, I. (1991). Development of an instrument to measure the perceptions of adopting an information technology innovation. Information systems research, 2(3), 192-222.
Naylor, J. (1999). Management. Harlow, England: Prentice Hall.
Nyambura, M. T. (2018). Moderating effect of information communication technology on supply chain risks and firm performance among manufacturing firms in Kenya. JKUAT.
Organization for Economic Co-operation and Development (OECD). (2018). Oslo manual: Guidelines for collecting and interpreting innovation data (4 ed.). Org. for Economic Cooperation & Development. Retrieved from https://www.oecd.org/science/oslo-manual-2018-9789264304604-en.htm
Ossai, E. C. (2021). Relationship between Leadership Style and Innovation Performance in Small-to-Medium-Scale Enterprises in Nigeria. Walden University.
Pagani, M. (2013). Digital business strategy and value creation: Framing the dynamic cycle of control points. Mis Quarterly, 617-632.
Peterson, R. S., Smith, D. B., Martorana, P. V., & Owens, P. D. (2003). The impact of chief executive officer personality on top management team dynamics: one mechanism by which leadership affects organizational performance. Journal of applied Psychology, 88(5), 795.
Pfeffer, J. (1977). The ambiguity of leadership. Academy of management review, 2(1), 104-112.
Ranta, V., Aarikka-Stenroos, L., & Väisänen, J. M. (2021). Digital technologies catalyzing business model innovation for circular economy-Multiple case study. Resources, Conservation and Recycling, 164, 105155.
Rogers, E.M. (2003). Diffusion of Innovations (5th ed.). New York: The Free Press.
Ryan, J. C., & Tipu, S. A. (2013). Leadership effects on innovation propensity: A two-factor full range leadership model. Journal of Business Research, 66(10), 2116-2129.
Saks, A. M., & Gruman, J. A. (2014). What do we really know about employee engagement?. Human resource development quarterly, 25(2), 155-182.
Serfontein, J. J. (2010). The impact of strategic leadership on the operational strategy and performance of business organisations in South Africa (Doctoral dissertation, Stellenbosch: University of Stellenbosch).
Wallace, E., de Chernatony, L., & Buil, I. (2013). Building bank brands: How leadership behavior influences employee commitment. Journal of Business Research, 66(2), 165-171.
Wang, H., Tsui, A. S., & Xin, K. R. (2011). CEO leadership behaviors, organizational performance, and employees' attitudes. The leadership quarterly, 22(1), 92-105.
Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading digital: Turning technology into business transformation. Harvard Business Press.
Yee, R. W., Yeung, A. C., & Cheng, T. E. (2010). An empirical study of employee loyalty, service quality and firm performance in the service industry. International Journal of Production Economics, 124(1), 109-120.
Youngs, P., & King, M. B. (2002). Principal leadership for professional development to build school capacity. Educational administration quarterly, 38(5), 643-670.
Zigan, K., & Zeglat, D. (2010). Intangible resources in performance measurement systems of the hotel industry. Facilities, 28 (13), 597-610.
Arachchi, J. I., & Managi, S. (2021). Preferences for energy sustainability: Different effects of gender on knowledge and importance. Renewable and Sustainable Energy Reviews, 141, 110767.
Aral, S., & Weill, P. (2007). IT assets, organizational capabilities, and firm performance: How resource allocations and organizational differences explain performance variation. Organization science, 18(5), 763-780.
Armstrong, M., & Taylor, S. (2020). Armstrong's handbook of human resource management practice. 357.
Arslan, A., & Staub, S. (2013). Theory X and theory Y type leadership behavior and its impact on organizational performance: Small business owners in the Şishane Lighting and Chandelier District. Procedia-social and behavioral sciences, 75, 102-111.
Asikhia, O. A., Magaji, N., & Muritala, A. S. (2019). Technological intelligence and organizational performance: moderating role of process innovation. Open Journal of Economics and Commerce, 2(1), 25-31.
Atmojo, M. (2015). The influence of transformational leadership on job satisfaction, organizational commitment, and employee performance. International research journal of business studies, 5(2).
Avci, U., Madanoglu, M., & Okumus, F. (2011). Strategic orientation and performance of tourism firms: Evidence from a developing country. Tourism Management, 32(1), 147-157.
Boal, K. B., & Hooijberg, R. (2000). Strategic leadership research: Moving on. The Leadership Quarterly, 11(4), 515-549.
Braun, S., Peus, C., Weisweiler, S., & Frey, D. (2013). Transformational leadership, job satisfaction, and team performance: A multilevel mediation model of trust. The leadership quarterly, 24(1), 270-283.
Charry, K. (2012). Leadership Theories-8 Major Leadership Theories. Retrieved from http:// psychology. about. com/od/leadership/p/leadtheories. htm.
Chen, X. P., Eberly, M. B., Chiang, T. J., Farh, J. L., & Cheng, B. S. (2014). Affective trust in Chinese leaders: Linking paternalistic leadership to employee performance. Journal of management, 40(3), 796-819.
Cheng, C. C., Yang, C. L., & Sheu, C. (2014). The link between eco-innovation and business performance: a Taiwanese industry context. Journal of cleaner production, 64, 81-90.
Christensen, C., & Raynor, M, (2003). The innovator’s solution. Boston, MA: Harvard Business School.
Danişman, Ş., Tosuntaş, Ş. B., & Karadağ, E. (2015). The effect of leadership on organizational performance. In Leadership and organizational outcomes (pp. 143-168). Springer, Cham.
Ebrahimi, P., Moosavi, S. M., & Chirani, E. (2016). Relationship between leadership styles and organizational performance by considering innovation in manufacturing companies of Guilan Province. Procedia-Social and Behavioral Sciences, 230, 351-358.
Fiedler, F. E. (1964). A contingency model of leadership effectiveness. In Advances in experimental social psychology, 1, 149-190.
Fiedler, F. E. (2006). The contingency model: A theory of leadership effectiveness. Small groups: Key readings, 369, 60051-9.
Flocy, J. (2017). Responsible leadership: A behavioural perspective. Singapore Management University (Singapore).
García-Sánchez, E., García-Morales, V. J., & Martín-Rojas, R. (2018). Influence of technological assets on organizational performance through absorptive capacity, organizational innovation and internal labour flexibility. Sustainability, 10(3), 770.
Habes, M., Alghizzawi, M., Ali, S., SalihAlnaser, A., & Salloum, S. A. (2020). The Relation among Marketing ads, via Digital Media and mitigate (COVID-19) pandemic in Jordan. International Journal of Advanced Science and Technology, 29(7), 12326-12348.
Harsh, H., & Prasad, A. (2020). Employment relations and perceived organizational performance: the moderating role of technological intensity. Employee Relations: The International Journal, 43 (1), 109-130.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2001). Strategic management: competitiveness and globalization, Cincinnati. Ohio: South-Western College Pub.
Hjort, J., & Poulsen, J. (2019). The arrival of fast internet and employment in Africa. American Economic Review, 109(3), 1032-79.
Ibrahim, A. U., & Daniel, C. O. (2019). Impact of leadership on organisational performance. International Journal of Business, Management and Social Research, 6(2), 367-374.
International Energy Agency, IEA (2017). Digitalisation and Energy. IEA, Paris. Retrieved from https://www.iea.org/reports/digitalisation-and-energy.
Kaplan, R. S., & Norton, D. P. (2001). Transforming the balanced scorecard from performance measurement to strategic management: Part II. Accounting horizons, 15(2), 147-160.
Karada, E. (2015). Leadership and organizational outcomes: Meta-analysis of empirical studies. Eskisehir: Springer International Publishing, 1-273.
Keshtkar, M. M., & Nezad, S. (2018). Investigation of effective parameters on entropy generation in a square electronic package. Frontiers in Heat and Mass Transfer (FHMT), 10.
Kraft, M. H. G. (2018). Antecedents & perspectives of ambidextrous leadership. Marketing and Management of Innovations, 4, 5-13.
Lamb, R. (2013). How can Managers Use Participative Leadership Effectively? Retrieved March 17, 2014, from http://www.task.fm/participative-leadership.
Lear, L. W. (2012). The relationship between strategic leadership and strategic alignment in high-performance companies in South Africa.
Libert, B., Beck, M., & Wind, Y. (2016). Questions to ask before your next digital transformation. Harv. Bus. Rev, 60(12), 11-13.
Maharani, V., Troena, E. A., & Noermijati, N. (2013). Organizational citizenship behavior role in mediating the effect of transformational leadership, job satisfaction on employee performance: Studies in PT bank Syariah Mandiri Malang east Java. International Journal of Business and Management, 8(17), 1-12.
Markus, M. L., & Loebbecke, C. (2013). Commoditized digital processes and business community platforms: New opportunities and challenges for digital business strategies. Mis Quarterly, 37(2), 649-653.
Mehrabi, J., Roozbehani, M. T., Naseri, S., & Samangooei, B. (2012). Impact of Leadership Development on Employees' Performance. International Journal of Business, Humanities and Technology, 2(5).
Meindl, J. R., Ehrlich, S. B., & Dukerich, J. M. (1985). The romance of leadership. Administrative science quarterly, 78-102.
Mirkamali, S. M., Thani, F. N., & Alami, F. (2011). Examining the role of transformational leadership and job satisfaction in the organizational learning of an automotive manufacturing company. Procedia-Social and Behavioral Sciences, 29, 139-148.
Moore, G. C., & Benbasat, I. (1991). Development of an instrument to measure the perceptions of adopting an information technology innovation. Information systems research, 2(3), 192-222.
Naylor, J. (1999). Management. Harlow, England: Prentice Hall.
Nyambura, M. T. (2018). Moderating effect of information communication technology on supply chain risks and firm performance among manufacturing firms in Kenya. JKUAT.
Organization for Economic Co-operation and Development (OECD). (2018). Oslo manual: Guidelines for collecting and interpreting innovation data (4 ed.). Org. for Economic Cooperation & Development. Retrieved from https://www.oecd.org/science/oslo-manual-2018-9789264304604-en.htm
Ossai, E. C. (2021). Relationship between Leadership Style and Innovation Performance in Small-to-Medium-Scale Enterprises in Nigeria. Walden University.
Pagani, M. (2013). Digital business strategy and value creation: Framing the dynamic cycle of control points. Mis Quarterly, 617-632.
Peterson, R. S., Smith, D. B., Martorana, P. V., & Owens, P. D. (2003). The impact of chief executive officer personality on top management team dynamics: one mechanism by which leadership affects organizational performance. Journal of applied Psychology, 88(5), 795.
Pfeffer, J. (1977). The ambiguity of leadership. Academy of management review, 2(1), 104-112.
Ranta, V., Aarikka-Stenroos, L., & Väisänen, J. M. (2021). Digital technologies catalyzing business model innovation for circular economy-Multiple case study. Resources, Conservation and Recycling, 164, 105155.
Rogers, E.M. (2003). Diffusion of Innovations (5th ed.). New York: The Free Press.
Ryan, J. C., & Tipu, S. A. (2013). Leadership effects on innovation propensity: A two-factor full range leadership model. Journal of Business Research, 66(10), 2116-2129.
Saks, A. M., & Gruman, J. A. (2014). What do we really know about employee engagement?. Human resource development quarterly, 25(2), 155-182.
Serfontein, J. J. (2010). The impact of strategic leadership on the operational strategy and performance of business organisations in South Africa (Doctoral dissertation, Stellenbosch: University of Stellenbosch).
Wallace, E., de Chernatony, L., & Buil, I. (2013). Building bank brands: How leadership behavior influences employee commitment. Journal of Business Research, 66(2), 165-171.
Wang, H., Tsui, A. S., & Xin, K. R. (2011). CEO leadership behaviors, organizational performance, and employees' attitudes. The leadership quarterly, 22(1), 92-105.
Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading digital: Turning technology into business transformation. Harvard Business Press.
Yee, R. W., Yeung, A. C., & Cheng, T. E. (2010). An empirical study of employee loyalty, service quality and firm performance in the service industry. International Journal of Production Economics, 124(1), 109-120.
Youngs, P., & King, M. B. (2002). Principal leadership for professional development to build school capacity. Educational administration quarterly, 38(5), 643-670.
Zigan, K., & Zeglat, D. (2010). Intangible resources in performance measurement systems of the hotel industry. Facilities, 28 (13), 597-610.
Published
2021-10-21
How to Cite
Mudany, J. O., Kemei, D., Awuor, E., & Ogutu, M. (2021). MODERATING ROLE OF TECHNOLOGY ON THE RELATIONSHIP BETWEEN LEADERSHIP AND ORGANIZATIONAL PERFORMANCE. African Journal of Emerging Issues, 3(9), 70 - 86. Retrieved from https://ajoeijournals.org/sys/index.php/ajoei/article/view/234
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