Abstract
Building on the competitive dynamics perspective, or specifically the awareness-motivation-capability (AMC) perspective, this study examines the effect of the interplay between transformational leadership (as a manifestation of capability) and competitive awareness on learning climate (as a manifestation of motivation), which in turn brings about heterogeneous financial advantage for the branches of a bank. Research results based on the large data collected from a commercial bank’s national branches support most of our hypotheses. Specifically, transformational leadership can advance a learning climate which in turn promotes financial performance of bank branches. Although competitive awareness does not play a moderating role, it produces a direct effect on learning climate. The study extends the AMC perspective and competitive dynamics theory by examining unit performance of a bank within the broad contexts of executive leadership, collective learning and sense-making on the business environment.
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