Analyzing the Impact of Organizational Entrepreneurship on Transformational Leadership Style with Regard to the Mediating Role of Organizational Learning

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Public Administration, Payame Noor University, Tehran, Iran.

2 Ph.D student of Entrepreneurship, Department of Management and Entrepreneurship, Faculty of Economics and Entrepreneurship, Razi University, Kermanshah, Iran.

3 Master of Business Administration, Payame Noor University, Tehran, Iran.

Abstract

Abstract
The current research was conducted to investigate the effect of transformational leadership style on organizational entrepreneurship by considering the mediating role of organizational learning. This research is of an applied type based on the purpose and is a descriptive survey in terms of nature and method. The statistical population included all the employees of the social security organization branches of Kermanshah province (n=436) people, of whom 205 people were selected using the random sampling method and Cochran formula. Data were collected by three standard questionnaires: transformational leadership by Bass and Avolio (2000), organizational entrepreneurship by Hill (1996), and organizational learning by Neefe (2001), whose validity was confirmed using the content validity method and whose reliability was confirmed using Cronbach's alpha. The structural equation modeling and SMART-PLS software were used to examine and test the research hypotheses. The findings indicated that transformational leadership has a positive and significant effect on organizational entrepreneurship and organizational learning at an error level of 0.05. Also, organizational learning had a positive and significant effect on organizational entrepreneurship. In addition, at the error level of 0.05, organizational learning had a mediating role in the effect of transformational leadership on organizational entrepreneurship. Therefore, the studied organization can provide suitable conditions for the emergence of creative, innovative, and entrepreneurial behaviors by using the transformational leadership style and organizational learning strategy.
Introduction
Organizations, as complex social systems, are an integral part of modern societies that operate with a set of interconnected units to achieve a goal. Meanwhile, the role of organizational leaders is very important in implementing organizational changes, i.e. influencing employees to do something new or behave differently. In this regard, one of the leadership styles that have been the subject of many studies during the last three decades is the transformational leadership style. Transformational leadership is an active leader who acts as an agent of change, raises the awareness of followers, and helps them achieve their goals. On the other hand, organizations rely on the innovative behaviors of employees to adapt to the changing environment to help them survive and maintain competitive advantages. In this regard, organizational learning is one of the main pillars for promoting innovation and sustainable organizational development. Organizational learning has been emphasized as a factor to improve the ability of organizations to face the effects of environmental changes. On the other hand, a new wave of change in societies, new technologies, and innovation has resulted in responsibility, survival, value, and organizational performance to adapt to new requirements. In order to fulfill their missions and goals, organizations must be innovative, active, and in other words, put organizational entrepreneurship on the agenda. Organizations need entrepreneurs and organizational entrepreneurship to adopt appropriate measures to overcome environmental challenges. Therefore, given the importance of the subject, the current research sought to find out whether the transformational leadership style could affect organizational entrepreneurship in the social security organization of Kermanshah province, considering the mediating role of organizational learning. Therefore, two main goals were pursued in this research, including determining the effect of four dimensions of transformational leadership style on organizational entrepreneurship and organizational learning and investigating the mediating role of organizational learning in transformational leadership and organizational learning.
Case study
The statistical population of this research included all employees of the insurance department of the social security organization branches of Kermanshah province, numbering 436 people in 2022. The samples were selected by stratified random sampling and calculated to be 205 people by Cochran's formula.
Materials and Methods
Data collection tools were three standard questionnaires of transformational leadership by Bass and Avolio (2000), organizational entrepreneurship by Hill (1996), and organizational learning by Neefe (2001). The validity and reliability of these questionnaires have been confirmed in previous researches. In this research, to ensure the validity of the questionnaire, the opinions and guidance of 5 management experts and professors were used and their views were included in the final questionnaires. Further, the reliability values of all questionnaires in this research were calculated to be 0.937, 0.893, and 0.918, respectively. The structural equation modeling method and Smart PLS3 software were used to investigate and test the research hypotheses.
Discussion and Results
The findings of the present research indicated that the transformational leadership style has a positive and significant effect on organizational entrepreneurship and can lead to the emergence of organizational entrepreneurial activities by the employees of the studied organization. Therefore, the transformational leadership style is a requirement for the survival and durability of today's organizations through the improvement of organizational entrepreneurial activities. Another finding of the current research was that transformational leadership style has a positive and significant effect on organizational learning. The confirmation of the third research hypothesis also indicated that organizational learning has a positive and significant effect on organizational entrepreneurship. Regarding the confirmation of the mediating role of organizational learning in the relationship between transformational leadership style and organizational entrepreneurship, it can also be argued that transformational leaders can create an environment that causes organizational learning and thus institutionalize organizational entrepreneurship as a way for the organization to respond to the environmental requirements in their organization.
Conclusion
Given the confirmation of all the hypotheses formulated in this research, suggestions are presented based on these hypotheses for the studied organization and other similar organizations to use the results obtained. These suggestions include designing training programs to strengthen the creativity of employees and stimulate the intellectual abilities of employees in order to increase their innovative, creative, and ultimately entrepreneurial behaviors. Organizational managers are suggested to involve employees in expressing collective strategic views in order to motivate them to start innovative projects. The leader of the organization should talk to the employees about the basic beliefs and values of the organization and encourage the employees to learn in line with these goals.

Keywords


منابع فارسی
پورانجنار، گل­بهار؛ جودزاده، مهتا و پورانجنار، عافیه (1395)، بررسی رابطه­ی رهبری تحول‌آفرین با خلاقیت و نوآوری و کارآفرینی سازمانی، بررسی­های بازرگانی، 14 (77): 79-93.
جعفری، رضا (1400)، بررسی تأثیر سبک رهبری تحول­آفرین بر کارآفرینی سازمانی، چشم­انداز حسابداری و مدیریت، 4 (41): 123-131.
حسینی، سیدسعید و علیزاده­جورکویه، ابراهیم (1397)، بررسی رابطه رهبری تحول­گرا و فرآیند توسعه محصول جدید با توجه به نقش میانجی یادگیری سازمانی و فرهنگ نوآوری، رویکردهای پژوهشی نوین در مدیریت و حسابداری، 7: 1-14.
رضایی، بیژن، آرمند، شیرین، بهور، شهین.(1401)، بررسی تأثیر نوآوری باز بر عملکرد نوآورانه سازمانی منابع انسانی با نقش تعدیلگر محیطی در مراکز آموزش عالی، فصلنامه آموزش علوم دریایی، 9(3)، 116-130.
سجادی، سیداحمد؛ رضوی، سیدمحمد­حسین و کردلو، حسین (1398)، تأثیر قابلیت­های یادگیری سازمانی بر کارآفرینی سازمانی در وزارت ورزش و جوانان ایران، پژوهشنامه مدیریت ورزشی و رفتار حرکتی، 15 (30): 241-255.
شکیب­زاده­خواه، شیرزاد و شاهد، ابوالفضل (1398)، بررسی تأثیر رهبری تحول­آفرین و کارآفرینی اجتماعی با عملکرد سازمانی با میانجی­گری ارزش اجتماعی (موردمطالعه: بانک حکمت ایرانیان)، سومین کنفرانس ملی پژوهش­های نوین حسابداری و مدیریت در هزاره سوم.
صفایی­شکیب، علی؛ عبدالملکی، بابک؛ حسین­زاده، علی­اکبر و موسیوند، مریم (1394)، اثر رهبری تحول­گرا بر تعالی سازمانی با نقش واسطه­ای توانمندسازی ساختاری و روان­شناختی کارکنان، مطالعات رفتار سازمانی، 4 (5): 1-24.
کوچه­مشکی، پریسا؛ شیخ­الاسلامی کندلوسی، نادر و محمدی­مقدم، یوسف (1399)، بررسی تأثیر رهبری تحول­آفرین بر تمایل بر تغییر با نقش میانجی یادگیری­زدایی (موردمطالعه: شرکت نیرپارس). توسعه سازمانی پلیس،17(74): 55-101.
References
Ha, A. T. L., Phong, L. B., & Hui, L. (2019). Leadership and Organizational Learning: The Determinants of Innovation Speed and Innovation Quality in Vietnamese Firms. Journal of Management and Strategy, 10(1), 29-37.
Agote, L., Aramburu, N., & Lines, R. (2016). Authentic leadership perception, trust in the leader, and followers’ emotions in organizational change processes. The Journal of Applied Behavioral Science, 52(1): 35-63.
Ahmad, H., Maram, A., Thaer, A., Raed, H., & Mustafa, H. (2022). The Impact of the Agile System, Knowledge Sharing, and Empowerment on Organizational Entrepreneurship in Ogange Telcommunication Firm. Journal of Southwest Jiaotong University, 57(3).
Alerasoul, S. A., Afeltra, G., Hakala, H., Minelli, E., & Strozzi, F. (2021). Organizational learning, learning organization, and learning orientation: An integrative review and framework. Human Resource Management Review, 100854
Ali, S., Peters, L. D., Khan, I. U., Ali, W., & Saif, N. (2021). Organizational learning and hotel performance: the role of capabilities’ hierarchy. International Journal of Hospitality Management, 85: 102349.
Anning-Dorson, T. (2018). Innovation and competitive advantage creation: The role of organisational leadership in service firms from emerging markets. International Marketing Review, 35(4), 580-600.
Bakari, H., Hunjra, A. I., & Niazi, G. S. K. (2017). How does authentic leadership influence planned organizational change? The role of employees’ perceptions: Integration of theory of planned behavior and lewin’s three step model. Journal of Change Management, 17(2): 155-187.
Beh, L.-S. and Shafique, I. (2016). Does leadership matter in innovation and new business venturing? Testing the mediating effect of absorptive capacity, International Journal of Innovation, Management and Technology, 7(5): 206-212.
Boukamcha, F. (2019). The effect of transformational leadership on corporate entrepreneurship in Tunisian SMEs, Leadership & Organization Development Journal, 40(3): 286-304.
Busari, A. H., Khan, S. N., Abdullah, S. M., & Mughal, Y. H. (2019). Transformational leadership style, followership, and factors of employees’ reactions towards organizational change. Journal of Asia Business Studies, 14(2): 181-209.
Canbaloğlu, G., Treur, J., & Roelofsma, P. H. (2022). Computational modeling of organisational learning by self-modeling networks. Cognitive Systems Research, 73: 51-64.
Chebbi, H., Yahiaoui, D., Sellami, M., Papasolomou, I., & Melanthiou, Y. (2020). Focusing on internal stakeholders to enable the implementation of organizational change towards corporate entrepreneurship: A case study from France. Journal of Business Research, 119: 209-217.
Chen, R., Lee, Y.-D., & Wang, C.-H. (2020). Total quality management and sustainable competitive advantage: serial mediation of transformational leadership and executive ability. Total Quality Management & Business Excellence, 31(5-6), 451-468.
Cherif, F. M. (2022). Corporate Entrepreneurship and Innovation Performance: The Mediating Effect of Employee Engagement through Leader’s Supervision. Economies10(7), 156.
Choi, S., Kim, K., Ullah, S.M.E., Kang, S. (2016). How transformational leadership facilitates innovative behavior of Korean workers. Person. Rev. 45 (3), 459–479.
Dehghani Soltani, M., Mesbahi, M., Darvish, M. (2021) The Impact of Transformational Leadership and Transparent Communication on Employees' Openness to Change by Explaining the Mediating Role of Organizational Trust. Organizational Behaviour Studies Quarterly, 10(2), 77-104. (In Persian)
Escandon-Barbosa, D., Salas-Paramo, J. (2022). The role of informal institutions in the relationship between innovation and organisational learning in export performance: A bidirectional relation?, Asia Pacific Management Review, In Press.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1): 39-50.
Hill, M. E. (1996). The Development of an Instrument to Measure Entrepreneurship:      Entrepreneurship within the Corporate Setting. Full thesis submitted in fulfillment of   the requirements for the degree Master of Arts (MA) in Industrial Psychology.   Department of    Psychology Rhodes University. Grahams town.
Hosseini, S-S & Alizadeh-Jorkoye, E. (2017). Investigating the relationship between transformational leadership and the new product development process with regard to the mediating role of organizational learning and innovation culture, New Research Approaches in Management and Accounting, 7, 1-14. (In Persian)
Hulland, J. (1999). Use of partial least squares in strategic management research: a review of four recent studies. Strategic management journal, 20(2): 195-204.
Islam, M. N., Furuoka, F., & Idris, A. (2021). Mapping the relationship between transformational leadership, trust in leadership and employee championing behavior during organizational change. Asia Pacific Management Review, 26(2): 95-102.
Jafari, R. (2021). Investigating the effect of transformational leadership style on organizational entrepreneurship, Accounting and Management Perspective, 2021, 4 (41): 123-131.  (In Persian)
Kochemeshki, P; Sheikh-ul-Islami Kandolosi, N. and Mohammadi-Moghadam, Y. (2019). investigating the effect of transformational leadership on willingness to change with the mediating role of de-learning (case study: Nirpars Company). Organizational Development of Police, 17(74): 55-101. (In Persian)
Lalani, M., Bussu, S., & Marshall, M. (2020). Understanding integrated care at the frontline using organisational learning theory: A participatory evaluation of multi-professional teams in East London. Social science & medicine, 262: 113254.
Le, B. P., Lei, H., Phouvong, S., Than, T. S., Nguyen, T. M. A., & Gong, J. (2018). Self-efficacy and optimism mediate the relationship between transformational leadership and knowledge sharing. Social Behavior and Personality: an international journal, 46(11), 1833-1846.
Le, P. B., & Lei, H. (2017). How transformational leadership supports knowledge sharing: Evidence from Chinese manufacturing and service firms. Chinese Management Studies, 11(3), 479- 497.
Le, T. T., & Le, B. P. (2021). Mediating Role of Change Capability in the Relationship between Transformational Leadership and Organizational Performance: An Empirical Research. Psychology Research & Behavior Management, 14, 1747.
Lei, H., Leaungkhamma, L., & Le, P. B. (2020). How transformational leadership facilitates innovation capability: the mediating role of employees' psychological capital. Leadership & Organization Development Journal, 41(4), 481-499.
Mai, N. K., Do, T. T., & Phan, N. A. (2022). The impact of leadership traits and organizational learning on business innovation. Journal of Innovation & Knowledge, 7(3): 100204.
Maktabi, H., & Babakhanian, M. (2015). Identification of factors affecting organizational entrepreneurship in Selected Sama  echnical Schools. Procedia-Social and Behavioral Sciences, 195, 940-947.
Neefe, D. O.(2001). Comparing levels of organizational learning maturity of colleges and universities participating in traditional and non-traditional (Academic quality improvement project) accreditation processes. 2001.
Nicolletti, M., Lutti, N., Souza, R., & Pagotto, L. (2019). Social and organizational learning in the adaptation to the process of climate change: The case of a Brazilian thermoplastic resins and petrochemical company. Journal of Cleaner Production, 226: 748-758.
Özgül, B., & Zehir, C. (2022). Top management’s green transformational leadership and competitive advantage: the mediating role of green organizational learning capability. Journal of Business & Industrial Marketing (ahead-of-print).
Potosky, D., & Azan, W. (2022). Leadership behaviors and human agency in the valley of despair: A meta-framework for organizational change implementation, Human Resource Management Review, 100927.
Puranjanar, G-B; Jodzadeh, M & Pouranjanar, A.(2015). Investigating the relationship between transformational leadership and organizational creativity and innovation, Business Reviews, 14 (77), 79-93. (In Persian)
Reid, S. W., Anglin, A. H., Baur, J. E., Short, J. C., & Buckley, M. R. (2018). Blazing new trails or opportunity lost? Evaluating research at the intersection of leadership and entrepreneurship. The Leadership Quarterly, 29(1), 150-164.
Rezaei, B, Armand, Sh, Behvar, Sh. (2022). Investigating the effect of open innovation on organizational innovative performance of human resources with the role of environmental moderator in higher education centers, Marine Science Education Quarterly,  9(3), 116-130. (In Persian)
Safai Shakib, A, Abdul Maliki, B, Hosseinzadeh, S. AA, Mosivand, M (2016). Effect of transformational leadership on organizational excellence of Payame Noor University with mediating role of staff structural and psychological empowerment. Organizational Behaviour Studies Quarterly, 4(16): 24-1. (In Persian)
Sajjadi, S-A; Razavi, S-M-H and Kordalo, H. (2018). The effect of organizational learning capabilities on organizational entrepreneurship in the Ministry of Sports and Youth of Iran, Journal of Sports Management and Movement Behavior,  15 (30): 241-255.  (In Persian)
Shakibzadekhah, S and Shahid, A. (2018). Investigating the impact of transformational leadership and social entrepreneurship on organizational performance with the mediation of social value (case study: Iranian Hekmat Bank), the third national conference on modern accounting research and Management in the third millennium. (In Persian)
Sharma, D., & Krishnan, V. R. (2012). The impact of pay satisfaction and transformational leadership on employee engagement. In 5th International Conference of Management and Behavioral Sciences, Haridwar, India,.
Son, T. T., & Phong, L. B. (2023). Antecedents of Competitive Advantage for Vietnamese Firms: The Roles of Transformational Leadership, Organizational Learning and Innovation. Journal of International Business and Management, 6(5), 01-15.
Son, T. T., Phong, L. B., & Loan, B. T. T. (2020). Transformational Leadership and Knowledge Sharing: Determinants of Firm’s Operational and Financial Performance. Sage Open, 10(2), 2158244020927426.
Sudibjo, N., & Prameswari, R. K. (2021). The effects of knowledge sharing and person–organization fit on the relationship between transformational leadership on innovative work behavior. Heliyon, 7(6): 34-73.
Than, S. T., Le, P. B., Le, P. T., & Nguyen, D. T. N. (2023). Stimulating product and process innovation through HRM practices: the mediating effect of knowledge management capability. Evidence-based HRM: a Global Forum for Empirical Scholarship, 11(1), 85-102.
Ur Rehman, S., Bhatti, A., & Chaudhry, N. I. (2019). Mediating effect of innovative culture and organizational learning between leadership styles at third-order and organizational performance in Malaysian SMEs. Journal of Global Entrepreneurship Research, 9(1), 1-24.
Van, N. T., Phong, L. B., & Loan, L. T. (2018). Antecedents of Innovation Capability: The Role of Transformational Leadership and Organizational Learning. International Journal of Business Administration, 9(5), 1-10.
Vashdi, D. R., Levitats, Z. S., & Grimland, S. (2019). Which transformational leadership behaviors relate to organizational learning processes? The Learning Organization.
Zhu, W., Sosik, J. J., Riggio, R. E., & Yang, B. (2012). Relationships between transformational and active transactional leadership and followers’ organizational identification: The role of psychological empowerment. Journal of Behavioral and Applied Management, 13(3): 168-212.