The Effect of Transformational Leadership, Organizational Communication, and Organizational Learning on Business Value Sharing: Empirical Investigation in One Home Specificity Retailing Store

Abstract

Most of previous studies concerning transformational leadership focused on trait as well as behavior theories of leaders, organizational commitment, and operational performance, but lacks in discussion over business value sharing which is supposed not only to enforce the cohesiveness, but also to invigorate employees in hunting targets. Accordingly, this study intends to combine variables of organizational communication and organizational learning as mediators to convey commands or values, so as to examine the conceptual framework that how transformational leadership (involving both trait and behavior theories) affect the business value sharing through organizational communication and learning mechanism. Additionally, 391 questionnaires, designed by Likert 5 scale, were sent for survey in a domestic home specificity retailing store (including braches in other 5 regions) and 270 valid questionnaires were collected with 69.05% response rate. This study conducts LISREL to verify the structural equation model and hypotheses. The statistical outcome reveals that transformational leadership would indirectly influence the business value sharing (the path coefficient is 0.43(superscript ***)) through organizational communication and organizational learning. Given the four business values that this home specificity retailing store attempts to deliver to all employees and that are customer oriented, high quality, low cost, and rapidly response, managers of the home specificity retailing store are suggested to pay more attention on offering a platform or proper environment to support informal and horizontal communication, which then will raise the mutual cognition and in turn facilitate knowledge flow. Besides, in light of the significant impact of organizational learning, managers should plan a set of customized curriculum and heuristic training mechanism, reasonable motivation methods, and embedded process community of practice so that employees are stirred to progress themselves in capabilities and simultaneously combine the business value with self-achievement.