Transformational leadership in an acquisition: A field study of employees

Abstract

This field study of employees involved in a major acquisition integration addressed the relationships that leadership and climate had with subordinate acquisition acceptance, performance, and job satisfaction in an uncertain environment. Transformational leadership was positively related to acquisition acceptance, supervisor-rated performance, and job satisfaction ( p < .01). Transformational leaders also impacted subordinate outcomes through the perceived climate they created for goal clarity and support for creative thinking. Both goal clarity and support for creative thinking partially mediated the relationship between transformational leadership and job satisfaction ( p < .01; N = 447). Goal clarity did not mediate the relationship between transformational leadership and performance, but was positively related to performance ( p < .05; N = 344). Support for creative thinking fully mediated the relationship between transformational leadership and acquisition acceptance ( p < .01; N = 432). Implications for future research and for managers engaged in acquisition integrations are discussed.