Direct and indirect influence of project managers’ contingent reward leadership and empowering leadership on project success

Abstract

Leadership is considered to be a viable solution to avoid persistent project failures in an increasingly volatile and uncertain competitive business environment; however, practitioners and researchers have yet to reach a consensus on the best leadership style to prevent project failure. Although past studies have examined different leadership models in the project environment, they have overlooked the importance of emerging leadership styles in managing new business realities. This article thus attempts to determine whether two leadership styles, that is, contingent reward and empowering, directly and indirectly achieve project success. Data were collected from 289 project team members in the IT sector and analysed using partial least squares structural equation modelling. The results demonstrate the positive impact of empowering leadership on employee self-leadership, which leads to project success. Further, employee self-leadership positively mediates the link between empowering leadership and project success, while goal clarity moderates the influence of self-leadership on project success. However, contingent reward leadership neither directly nor indirectly (through self-leadership) showed any significant relationship with project success.