Transformational and Transactional Leaders and Their Role in Implementing the Kotter Change Management Model Ensuring Sustainable Change: An Empirical Study

Abstract

A rapid pace of change presents an unforeseen and perpetual competitive challenge for organizations. Despite the existence of numerous change management models, organizational change leaders often encounter obstacles during the implementation phase that limit change effectiveness. This paper seeks to make a difference in managerial actions, specifically when implementing planned change, by directing them to use specific leadership actions during the change stage. While previous research has acknowledged the potential linkage between leadership and change effectiveness, a comprehensive exploration of this relationship within the realm of strategic change management remains lacking. This study aims to address this gap by comparing transactional and transformational leadership styles through the lens of the leadership-as-practice perspective. Specifically, this paper analyzes the alignment of these leadership styles with the Kotter model for implementing organizational change and investigates which leadership components or behaviors positively impact predetermined stages of change. Using the MLQ and a developed Kotter questionnaire, data was collected from 385 Lebanese employees working in SMEs experiencing change across the five provinces of Lebanon. PLS structural equation modeling was utilized to analyze the results, and the GoF value indicated that the study model is valid to be considered as a PLS global model. Our findings shed light on the dynamic interplay between leadership efficacy and distinct change stages. Rooted in the leadership-as-practice perspective, this study contributes a nuanced understanding of effective leadership’s crucial role in navigating the multifaceted challenges of organizational change, offering insights for practitioners and scholars alike.