Transactional leadership and success of international development projects (IDP): mediating effects of cooperative style to conflict resolution and team potency

Abstract

PurposeThis study aims to examine the mediating role of cooperative style to conflict resolution and team potency in the relationship between transactional leadership style and the success of international development projects (IDP). The study draws on full range leadership theory and contextualizes transactional leadership style to the IDP environment.Design/methodology/approachA questionnaire survey was administered to a convenience sample of 111 IDP managers in Benin. The data obtained from the survey were subjected to principal component analysis using the SPSS and confirmatory factor analysis using XLSTAT-PLSM. The research hypotheses are tested according to the partial least squares method.FindingsThe hypothesis test shows that transactional leadership has a direct and indirect positive influence (through team potency) on the success of IDP. Contrary to the cooperative style of conflict resolution, team potency plays a partial mediating role in the relationship between transactional leadership and the success of IDP. Also, considering the effect of the specific dimensions of transactional leadership on the success of IDP, only the “active management by exception” dimension influences directly and indirectly (through team potency) on the latter.Practical implicationsAs a result, this research is of great value to IDP managers who are aware of the positive consequences associated with transactional leadership without knowing the role played by its dimensions. Indeed, it provides them with information necessary to identify the appropriate transactional leadership behaviors to improve the success of projects.Originality/valueThe relevance of this study is to consider team potency as intermediary mechanisms between transactional leadership and the success of IDP and examine the effect of the dimensions of transactional leadership on the success of IDP by integrating the mediating action of team potency. Besides, this research highlights a mechanism through which transactional leadership influences the success of IDPs and shows that the use of the construct of transactional leadership rather than its specific dimensions does not capture the specificities of the mechanism that links transactional leadership and its consequences.