Perceptions of transformational leadership (TFL) style: A study on Malaysian cooperative board of directors

Hezlina Binti Mohd Hashim,Ahmed Razman Bin Abdul Latiff,Z Ghazali

doi:10.1051/shsconf/20185601004

Hezlina Binti Mohd Hashim, Ahmed Razman Bin Abdul Latiff + Show 1 more

Open Access

https://doi.org/10.1051/shsconf/20185601004

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Abstract

This paper is a pilot study that examines the perceptions of transformational leadership among cooperative movements’ boards. Past studies have shown that transformational leadership is a strong predictor of firm performance (effectiveness). This study aims to examine on the perceptions of transformational leadership style among Malaysian cooperatives board of directors. Among the major problems faced by Malaysian cooperatives are the lack of board of directors’ commitments, directors failed to perform their duties effectively and weak leadership from Board of Directors which affected the board effectiveness and performance.

Highlights

The Eleventh Malaysia Plan (2016–2020) has stated that the government will support cooperativebased community enterprises through incentives on funding and facilities as well as leadership and management programs (Economic Planning Unit, 2015)
It is in line with the 2011-2020 National Cooperative Policy (NCP) launched by Prime Minister Datuk Seri Najib Tun Razak in Malaysia which verified and acknowledged the cooperative movement’s role in economic development
These findings are in line with previous studies done by Laitinen (2016), Judge & Piccolo (2004) and Prenkert & Ehnfors (1997) which discussed on the negative effect of transformational leadership

Summary

Introduction

The Eleventh Malaysia Plan (2016–2020) has stated that the government will support cooperativebased community enterprises through incentives on funding and facilities as well as leadership and management programs (Economic Planning Unit, 2015). Malaysian cooperatives have been recognized as the third economic sector with a target income of RM50 billion by 2020 (Tulus & Iyer, 2015). It is in line with the 2011-2020 National Cooperative Policy (NCP) launched by Prime Minister Datuk Seri Najib Tun Razak in Malaysia which verified and acknowledged the cooperative movement’s role in economic development. The second NCP is important as it is consistent with the 2010 New Economic Model to progress to the level of development as a high-income nation from Malaysia’s current middle-income status, the increase in number of cooperatives is inverted with the growth of membership, share capital and assets had decreased (Tulus & Iyer, 2015).

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