Transformational leadership & excellence in family managed enterprises

Abstract

This study examines how the adoption of transformational leadership by the patriarchs in GCC elevates learning, innovative capabilities and competencies of employees to deliver differentiated products and retain competitive advantage. It aims to explain how the adoption of the following attributes allows a patriarch in a family firm to abandon autocratic practices, attain performance excellence and sustain growth: To explore the above, mixed method of research is used. It leads to the utilization of a questionnaire and indepth interview schedule. It facilitates the use of a Survey of 179 respondents and an interview of 12 participants. Multiple Regression Analysis and Content Analysis are used to assess the validity of the data obtained from the responses. The findings of the study reveal that the patriarchs in family firms realize the importance of embracing transformational leadership qualities to change and connect to employees emotionally, win their trust and loyalty. Focus these stimulates their passion to mentor employees, encourage creativity, demonstrate admirable behaviour, display of convictions, articulate vision, challenge assumptions, encourage creativity. The findings also clarify that over reliance on such leadership qualities may not help patriarch and family firms in the GCCC. Such reliance breeds a false sense of power and leadership, weakening unity of command, and promoting indiscipline and disorderly actions. They dampen collective competence and impair the desire to act in time and attain goals set. Such failure constricts abilities of family firms to compete and sustain growth in the region. Finally the study highlights the necessity to control such weaknesses. The motivation to alter these leads patriarchs to adopt transactional leadership qualities, namely contingent rewards and management-by exception, in conjunction with transformational leadership qualities. Their combined application influences the passion of employees to pursue judicious innovation, orderly measures to excel, surpass benchmarks set, compete and establish leadership in the GCC. Key words: Idealized Influence, Inspirational Motivation, Intellectual Stimulation, Individualized Consideration and Contingent Reward