Role of Transformational Leadership Style of Accounting Professionals Towards Subordinates Performance, OCB, and Innovation: Mediating Effect of Integrity and Thriving

Authors

  • S M Shoaib Wasim Bahria University, Karachi, Pakistan. Author
  • Dr. Mustaghis Ur Rehman Bahria University, Karachi, Pakistan. Author

DOI:

https://doi.org/10.52633/jemi.v4i1.147

Keywords:

Transformational Leadership, Innovative Work Behavior, Organizational Citizenship Behavior, Accounting Professionals, PLS-SEM

Abstract

This study aims to examine the role of the transformational leadership (TL) style of accounting professionals towards subordinates’ performance, organizational citizenship behaviour (OCB), and innovation with the mediating role of integrity and thriving at the workplace in Karachi. A clustered sample of 471 accounting professionals has participated in the research based on the nonprobability convenience sampling method. A five-point Likert scale questionnaire was developed as a data collection instrument while the survey method was used to collect responses from the sample population. PLS-SEM has been employed in the study for data analysis using Smart PLS. The results demonstrate that integrity has a positive effect on performance, OCB has a negative but insignificant effect on performance whereas TL has a positive effect on integrity, integrity at the workplace (IWB), and thriving at the workplace. As far as mediation effects are concerned, it was found that TL has a positive effect on IWB with the mediation of thriving at the workplace, has a positive but insignificant effect on OCB with the mediation of thriving at the workplace, has a positive effect on performance with the mediation of integrity, has a positive but insignificant effect on performance with the sequential mediation of thriving at workplace and OCB, and has a positive effect on performance with the mediation of thriving at the workplace. Furthermore, thriving at the workplace has a positive effect on IWB and performance, and has a positive but insignificant effect on OCB as well as has a positive but insignificant relationship with the mediation of OCB and TL. The study findings propose that the managers should focus on developing a conducive network to help the organization strive. Moreover, the focus should be driven towards employees’ learning to share their views with fellow auditors whereas the controllers should discuss the intended primary purposes and nature of organizational financial targets.

Author Biographies

  • S M Shoaib Wasim, Bahria University, Karachi, Pakistan.

    Management Studies Department, Bahria University, Karachi, Pakistan.

  • Dr. Mustaghis Ur Rehman, Bahria University, Karachi, Pakistan.

    Sr. Professor, Management Studies Department, Bahria Business School, Bahria University, Karachi, Pakistan.

References

Abid, G. (2016). How does thriving matter at workplace. International Journal of Economics, 4(9), 521-527.

Abid, G., Zahra, I., & Ahmed, A. (2015). Mediated mechanism of thriving at work between perceived organization support, innovative work behavior and turnover intention. Pakistan Journal of Commerce and Social Sciences, 9(3), 982-998.

Afsar, B., & Umrani, W. A. (2020). Does thriving and trust in the leader explain the link between transformational leadership and innovative work behaviour? A cross-sectional survey. Journal of research in nursing, 25(1), 37-51.

Ahmad, N., Mohamad Nor, N. B. A., Ghazali, M., Abd Razak, S., & Moultone, N. H. (2019). Transformational leadership style and its relation to employees Integrity: findings from the study of government agency in Malaysia. Academic Journal of Business and Social Sciences (AJoBSS), 3, 1-13.

Ali, B. J., & Anwar, G. (2021). Strategic leadership effectiveness and its influence on organizational effectiveness. International Journal of Electrical, Electronics and Computers, 6(2).

Amankwaa, A., Gyensare, M. A., & Susomrith, P. (2019). Transformational leadership with innovative behaviour: Examining multiple mediating paths with PLS-SEM. Leadership & Organization Development Journal.

Brewer, B. (2008). Perception and content. John McDowell: Experience, norm, and nature, 15-31.

Christensen-Salem, A., Walumbwa, F. O., Hsu, C. I.-C., Misati, E., Babalola, M. T., & Kim, K. (2020). Unmasking the creative self-efficacy–creative performance relationship: the roles of thriving at work, perceived work significance, and task interdependence. International Journal of Human Resource Management, 1-27.

Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches (5th ed.). SAGE Publications.

Darus, M., & Muslim, S. (2020). TThe Moderating Effect Of Ethical Climate On The Relationship Of Transformational Leadership And Integrity: A Proposed Framework. PalArch's Journal of Archaeology of Egypt/Egyptology, 17(5).

Elahi, N. S., Abid, G., Arya, B., & Farooqi, S. (2020). Workplace behavioral antecedents of job performance: Mediating role of thriving. The Service Industries Journal, 40(11-12), 755-776.

Febrina, D., & Syamsir, S. (2020). The Influence of Integrity and Commitment Organizational on Employee Performance. International Journal of Research and Analytical Reviews (IJRAR), 7(1), 799-805.

Gefen, D., Straub, D., & Boudreau, M.-C. (2000). Structural equation modeling and regression: Guidelines for research practice. Communications of the association for information systems, 4(1), 7.

Ghani, M. A., & Suryani, A. W. (2020). Professional Skills Requirements for Accountants: Analysis of Accounting Job Advertisements. Jurnal ASET (Akuntansi Riset), 12(2), 212-226.

Ghazali, M. H., Ahmad, N., Nor, N. B. A. M., Abd Razak, S., & Moultone, N. H. (2019). Transformational Leadership Style and Its Relation To Employees Integrity: Findings From The Study of Government Agency in Malaysia. Academic Journal of Business and Social Sciences, 3(1), 1-13.

Goretzki, L., Strauss, E., & Weber, J. (2013). An institutional perspective on the changes in management accountants’ professional role. Management Accounting Research, 24(1), 41-63.

Guan, X., & Frenkel, S. (2020). Organizational support and employee thriving at work: exploring the underlying mechanisms. Personnel Review.

Hadi, P., & Saerang, D. P. (2020). The Influence of Transformational Leadership and Employee Integrity through Organizational Citizenship Behavior (OCB) on Employee Innovation in Regency/City Inspectorates. Journal of Business and Behavioural Entrepreneurship, 4(1), 81-90.

Hidayah, S., & Harnoto, H. (2018). Role of organizational citizenship behavior (OCB), perception of justice and job satisfaction on employee performance. JDM (Jurnal Dinamika Manajement), 9(2), 170-178.

Hoyle, R. H. (2012). Handbook of structural equation modeling. Guilford press.

Khan, N. A., Khan, A. N., Soomro, M. A., & Khan, S. K. (2020). Transformational leadership and civic virtue behavior: Valuing act of thriving and emotional exhaustion in the hotel industry. Asia Pacific Management Review, 25(4), 216-225.

Kim, J., Hatcher, C., & Newton, C. (2012). Professional identity of management accountants: leadership in changing environments [Research executive summary series, Volume 8, Issue 1].

Kleine, A. K., Rudolph, C. W., & Zacher, H. (2019). Thriving at work: A meta‐analysis. Journal of organizational behavior, 40(9-10), 973-999.

Kothari, C. R. (2004). Research methodology: Methods and techniques (2nd ed.). New Age International.

Li, H., Sajjad, N., Wang, Q., Muhammad Ali, A., Khaqan, Z., & Amina, S. (2019). Influence of transformational leadership on employees’ innovative work behavior in sustainable organizations: Test of mediation and moderation processes. Sustainability, 11(6), 1594.

Liborius, P. (2017). What does leaders' character add to transformational leadership? The Journal of psychology, 151(3), 299-320.

Liu, Y., Xu, S., & Zhang, B. (2020). Thriving at work: How a paradox mindset influences innovative work behavior. The Journal of Applied Behavioral Science, 56(3), 347-366.

Lyndon, S., Rawat, P., & Varghese, B. S. (2017). Effect of employee thriving on innovative work behaviour. 10th Annual Conference of the EuroMed Academy of Business,

Manoppo, V. P. (2020). Transformational leadership as a factor that decreases turnover intention: a mediation of work stress and organizational citizenship behavior. The TQM Journal.

Messmann, G., Evers, A., & Kreijns, K. (2021). The role of basic psychological needs satisfaction in the relationship between transformational leadership and innovative work behavior. Human Resource Development Quarterly.

Muhtasom, A., Mus, H. A. R., Bijang, J., & Latief, B. (2017). Influence of Servant Leadership, Organizational Citizenship Bahaviour on Organizational Culture and Employee Performance at Star Hotel in Makassar. Star, 486(206), 410.

Niessen, C., Mäder, I., Stride, C., & Jimmieson, N. L. (2017). Thriving when exhausted: The role of perceived transformational leadership. Journal of Vocational Behavior, 103, 41-51.

Niqab, M., Singh, S., & Shaikh, S. (2019). Fuzzy Based Principal's Leadership Skills Assessment Model for Secondary Schools. Journal of Independent Studies & Research: Management & Social Sciences & Economics, 17(2).

O Joe-Akunne, C., Stephen, E. I., & I Nnaebue, C. (2020). Leader-member Exchange and Transformational Leadership Style: A Prediction of Thriving at Work. Asian Journal of Advanced Research and Reports, 37-43.

Palanski, M. E., & Yammarino, F. J. (2011). Impact of behavioral integrity on follower job performance: A three-study examination. The Leadership Quarterly, 22(4), 765-786.

Pradhan, S., Jena, L. K., & Bhattacharyya, P. (2018). Transformational leadership and contextual performance: Role of integrity among Indian IT professionals. International Journal of Productivity and Performance Management.

Qazi, G. A. T. F., Ahmed, S., & Sarwar, K. (2020). How managerial coachingenables thrivig at work. Sequential mediation. Behavioral Determinants of Enterprise Development and Innovation, 16(2), 131.

Rezaee, B., Naderi, N., & Rostami, S. (2020). Developing a green entrepreneurship model in the agricultural sector (Case Study: Kermanshah County). Environmental Education and Sustainable Development, 9(1), 171-191.

Rosmi, R., & Syamsir, S. (2020). The Influence of Integrity and Work Experience on Employee Performance. International Journal of Research and Analytical Reviews (IJRAR), 7(1), 789-794.

Shah, S. I., Afsar, B., & Shahjehan, A. (2020). Unique Contextual Conditions Affecting Coworker Knowledge Sharing and Employee Innovative Work Behaviors. Revista de Psicología del Trabajo y de las Organizaciones, 36(2), 125-134.

Shahid, S., Muchiri, M. K., & Walumbwa, F. O. (2020). Mapping the antecedents and consequences of thriving at work: A review and proposed research agenda. International Journal of Organizational Analysis.

Stanescu, D. F., Zbuchea, A., & Pinzaru, F. (2020). Transformational leadership and innovative work behaviour: the mediating role of psychological empowerment. Kybernetes.

Tasi, R., & Syamsir, S. (2020). The Influence of Integrity and Loyalty on Employee Performance. International Journal of Research and Analytical Reviews (IJRAR), 7(1), 774-779.

Usman, M., Ghani, U., Islam, Z., U., Gul, H., & Mahmood, K. (2020). Ambidextrous leadership and innovative work behaviors: workplace thriving as a mediator. Journal of Public Affairs, e2321.

Wahyuni, R. S., & Syamsir, S. (2020). The Influence of Integrity and Human Resource Management towards Employee Performance. International Journal of Research and Analytical Reviews (IJRAR), 7(1), 780-785.

Walumbwa, F. O., Christensen-Salem, A., Perrmann-Graham, J., & Kasimu, P. (2020). An identification based framework examining how and when salient social exchange resources facilitate and shape thriving at work. Human Resource Development Review, 19(4), 339-361.

Xian, J., Li, B., & Huang, H. (2020). Transformational leadership and employees’ thriving at work: the mediating roles of challenge-hindrance stressors. Frontiers in Psychology, 11, 1400.

Xydias-Lobo, M., Tilt, C., & Forsaith, D. (2004). The future of management accounting: A South Australian perspective. Journal of Applied Management Accounting Research, 2(1), 55.

Zaib, M. J. (2018). Impact of Ethical Leadership on Innovative Work Behavior with Mediating Role of Thriving at Work and Moderating Role of Openness to Experience. Capital University.

Zainuddin, Z. N., & Sulaiman, S. (2016). Challenges faced by management accountants in the 21st century. Procedia Economics and Finance, 37, 466-470.

Zhang, J., Bal, P. M., Akhtar, M. N., Long, L., Zhang, Y., & Ma, Z. (2019). High‐performance work system and employee performance: the mediating roles of social exchange and thriving and the moderating effect of employee proactive personality. Asia Pacific Journal of Human Resources, 57(3), 369-395.

Published

30-01-2022

How to Cite

Role of Transformational Leadership Style of Accounting Professionals Towards Subordinates Performance, OCB, and Innovation: Mediating Effect of Integrity and Thriving (S. M. S. Wasim & M. Ur Rehman , Trans.). (2022). Journal of Entrepreneurship, Management, and Innovation, 4(1), 1-26. https://doi.org/10.52633/jemi.v4i1.147

Share