TY - JOUR
T1 - A longitudinal study of the effects of charismatic leadership and organizational culture on objective and perceived corporate performance
AU - Wilderom, C.P.M.
AU - van den Berg, P.T.
AU - Wiersma, U.J.
PY - 2012
Y1 - 2012
N2 - We investigated the combined effects of charismatic leadership and organizational culture on perceived and objective company performance using a longitudinal design. Employees (N = 1214) in 46 branches of a large Dutch bank rated branch management on charismatic leadership, organizational culture in terms of work practices, as well as perceived organizational performance. Objective performance data were collected twice, two years apart. The split sample technique attenuated common source bias. Results of structural equation modeling, in which Time 1 financial performance measures were controlled, revealed that charisma increased financial performance; however culture did not do so. Culture and charisma were significantly related to perceived performance, and culture and charisma were interrelated. A longer time interval may be necessary before the effects of culture on financial performance become apparent. The findings are discussed against the backdrop of the value of intangible resources.
AB - We investigated the combined effects of charismatic leadership and organizational culture on perceived and objective company performance using a longitudinal design. Employees (N = 1214) in 46 branches of a large Dutch bank rated branch management on charismatic leadership, organizational culture in terms of work practices, as well as perceived organizational performance. Objective performance data were collected twice, two years apart. The split sample technique attenuated common source bias. Results of structural equation modeling, in which Time 1 financial performance measures were controlled, revealed that charisma increased financial performance; however culture did not do so. Culture and charisma were significantly related to perceived performance, and culture and charisma were interrelated. A longer time interval may be necessary before the effects of culture on financial performance become apparent. The findings are discussed against the backdrop of the value of intangible resources.
U2 - 10.1016/j.leaqua.2012.04.002
DO - 10.1016/j.leaqua.2012.04.002
M3 - Article
VL - 23
SP - 835
EP - 848
JO - Leadership Quarterly
JF - Leadership Quarterly
SN - 1048-9843
IS - 5
ER -