Abstract
This study aims to investigate the effect of transformational leadership on entrepreneurial orientation in Jordanian commercial banks, and whether organizational learning capability mediates the effect of transformational leadership on entrepreneurial orientation. Adopting a quantitative research design, data were collected by means of a questionnaire-based survey of employees in Jordanian commercial banks. Based on 330 usable responses, the results revealed the significant effect of transformational leadership and two of its dimensions (inspirational motivation and intellectual stimulation) on entrepreneurial orientation. Two other dimensions (idealized influence and individualized consideration) did not contribute to entrepreneurial orientation. Additionally, the results showed that transformational leadership has a significant effect on organizational learning capability, and that organizational learning capability in turn affects entrepreneurial orientation. The findings confirm that organizational learning capability fully mediates the effect of transformational leadership on entrepreneurial orientation. A number of recommendations are advanced, the most important of which is that banks should improve and develop managers’ transformational attributes by training them on how to deal with employees in order to increase their entrepreneurial orientation. Banks should also consider improving their learning capability, as this plays a significant role in enhancing and supporting the effect of transformational leadership attributes on entrepreneurial orientation.
Highlights
Given the increasing challenges of fierce competition, economic globalization, and technological development, innovation in enterprises’ products and operations became an important factor for organization success (Lin et al, 2016; Obeidat et al, 2017)
This study analyzed the effect of transformational leadership on entrepreneurial orientation as mediated by organizational learning capability by collecting data from employees in Jordanian commercial banks
Based on the results of the present analysis, it can be concluded that two dimensions of transformational leadership, inspirational motivation and intellectual stimulation, have a significant effect on banks’ entrepreneurial orientation
Summary
Given the increasing challenges of fierce competition, economic globalization, and technological development, innovation in enterprises’ products and operations became an important factor for organization success (Lin et al, 2016; Obeidat et al, 2017). Banks automated and developed their functions and operations and used internet and mobile applications to offer innovative products and services to the customers To improve their entrepreneurial behaviors in the market and their performance, banks have had to focus on fostering and enhancing their intellectual capital through transformational leadership and moving toward knowledge and learning as leaders are accountable in achieving strategic organization’s goals and for producing the best products with efficient resource utilization (Madanchian et al, 2016; Masa’deh et al, 2015; Hashim et al, 2018). Many studies have examined the effects of transformational leadership on entrepreneurial orientation (e.g. Arham et al, 2015; Afsar et al, 2017; Dzomonda et al, 2017), but only a few have investigated the effect of transformational leadership on organizational learning capability
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call