The Effect of Transformational Leadership on Market Orientation, Learning Orientation, Organization Innovation and Organization Performance (Study on Star-Rated Hotels in Central Java Province, Indonesia)
The study is aimed at examining the Effect of Transformational Leadership on Market Orientation, Learning Orientation, Organization Innovation and Organization Performance of the Star-Rated Hotels in Central Java Province. The research samples cover 110 Marketing Managers of the Star-Rated Hotels in Central Java Province. Sample determination applies totals sampling or population sampling in which all members of the population are used as research samples and its Marketing Manager as the respondent represents every star-rated organization/hotel. In examining the established model relationship, the data are analyzed by using Structural Equation Modeling (SEM). The results reveal: Transformational Leadership does not give significant effect on Organization Performance; Transformational Leadership gives significant effect on Market Orientation; Transformational Leadership gives significant effect on Organization Innovation; Transformational Leadership gives significant effect on Learning Orientation; Market Orientation does not give significant effect on Organization Performance; Market Orientation gives significant effect on Organization Innovation; Market Orientation does not give significant effect on Learning Orientation; Learning Orientation gives significant effect on Organization Innovation; Learning Orientation does not give significant effect on Organization Performance; and Organization Innovation gives significant effect on Organization Performance.
Job Satisfaction and Faculty Turnover Intentions: A Case of Pakistani Univers...IOSRJBM
Retaining faculty members has been a problem in many universities for decades. When competent teachers quit, they depart with critical knowledge and experience that are essential for maintaininga competitive advantage. The aim of this study was to measure the impact of four facets of job satisfaction on turnover intentions of faculty members of different universities of Rawalpindi/Islamabad. A 16-item, selfadministered questionnaire was used to gather data on independent and dependent variables. In questionnaire, researchers used 5 point Likert scale for variables to measure respondent’s possible responses. 110 questionnaires were completed and returned back. Pearson Correlation and Multiple Regression tests were used to test the hypothesis. The results showed that the three facets of job satisfaction i.e. remuneration, supervisory support and work life policies have significant and negative relationship with turnover intentions while recognition has insignificant relationship with turnover intentions and this relationship did not support the researchers’ prediction. Results have been discussed andrecommendations have been made for universities’ administrations.
Factors Affecting Work Motivation of Official Credit Staff in Ham Thuan Bac D...ijtsrd
This study inherits and develops the Kovach model 1987 , also references researches related to employee motivation to find out factors affecting the work motivation of staff working at official credit institutions in Ham Thuan Bac district, Binh Thuan province. Research data are collected from 176 employees working at official credit institutions by convenient sampling. Applying exploratory factor analysis and multivariate linear regression, the study has demonstrated impacting factors to employee motivation. They include learning and promotion opportunities, income and benefit, care and recognition, working environment, leadership style, nature of work, workplace relationship, empowerment, and job stability. Especially, the factor of learning and promotion opportunities has the most influence on the working motivation of official credit employees in Ham Thuan Bac district, Binh Thuan province. Nguyen Truong Thuan | Nguyen Quoc Nghi | Dinh Hoang Anh Tuan "Factors Affecting Work Motivation of Official Credit Staff in Ham Thuan Bac District, Binh Thuan Province" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47529.pdf Paper URL : https://www.ijtsrd.com/management/organizational-behaviour/47529/factors-affecting-work-motivation-of-official-credit-staff-in-ham-thuan-bac-district-binh-thuan-province/nguyen-truong-thuan
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...IOSRJBM
This study is based on the pros and cons of the Blue Ocean Strategy (BOS) that offers users a framework for creating uncontested market space and diverts the views from the current competition to the creation of innovative value and demand. The main objective of the study is to show the overall scenario of BOS and its impact on organizational performance. The study includes the history of BOS, comparison with Red Ocean Strategy (ROS), relevance of applying BOS, Applications, Critics, Findings, Recommendations and Conclusion. The Findings of the study tries to show the ultimate results of applying the BOS and the recommendations urge some precautions to apply BOS. The result found that BOS positively affects the organization performance if applied in organizations. Overall, the study is effective to decide the adoption of BOS within the organization. The recommendation for the organization is to do an in-depth analysis on BOS before implementation to see the suitability considering the company size, industry condition, and adaptability.
An Exploratory Study of Factors Influencing Corporate Sustainability on busin...AkashSharma618775
This study evaluates the effect of corporate sustainability on business performance of manufacturing
industries in USA, from 2012 to 2015. These Manufacturing industries are listed in Corporate Social
Responsibility Hub (CSRHub), Morning Star and Global Reporting Initiative (GRI). All data used in this report
were extracted from 37 manufacturing companies’ Sustainability, corporate social responsibility (CSR) and
annual reports. These companies are of diverse sectors such as Automobile, Health care, consumer goods, food,
beverages and technology. Quantitative method of research is used in this study; this also includes the use of
explanatory and descriptive research design. The main issues to be discussed in this study are Donation, Incident
rate reduction and Water Recycled as the independent variables, while Revenue is the dependent variable. Data
analysis was carried out using the regression analysis, descriptive statistics and correlation. E-views software
generated the data for further analysis. The findings imply that donation has a positive insignificance effect on
revenue, reduced incident rate reduction had positive significance effect on revenue and water recycling has
negative insignificant effect on revenue. In the future researches, larger samples of companies form diverse sectors
and subsectors should be studied to broaden the research on company performance especially the non-financial
aspect.
Democratic Leadership Styles and Industrial Relations Atmosphere of Some Sele...ijtsrd
This paper examined how democratic leadership style impacts on industrial relations atmosphere of some selected oil servicing firms in Port Harcourt. In line with the purpose of this paper as stated, the population of this study comprises of 761employees of some selected oil servicing firms in Port Harcourt. Taro Yamene sample size determination formula was used to determine the sample size. The objective of this study is to assess the relationship between democratic leadership styles and its impacts on industrial relations atmosphere. Questionnaire were the major instruments used in gathering primary data which were analyzed using regression analyses. The study found that democratic leadership style can achieve improvement along the terms of industrial relation atmosphere with more emphases on industrial harmony, if leaders are able to improve on the level of industrial relations peace or unity within the oil servicing firms in port Harcourt, we recommends that in order for firms to maintain their attractiveness in the industry, they must have be conscious the different leadership style available and be sure in applying it in different situation as things transpires within the industry. Ake, Okechukwu "Democratic Leadership Styles and Industrial Relations Atmosphere of Some Selected Oil Servicing Firms in Port Harcourt" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47616.pdf Paper URL : https://www.ijtsrd.com/management/management-development/47616/democratic-leadership-styles-and-industrial-relations-atmosphere-of-some-selected-oil-servicing-firms-in-port-harcourt/ake-okechukwu
The main objective of the current study is to investigate the effects of organizational culture on organizational health. Modern organizations are in a very intense competitive conditions and in order to survive, they need parameters which guarantee their survival. Therefore, the current study will investigate the significance of culture in this regard. Municipalities as one of the organizations providing urban services are in a position where it is possible to lose their impact due to the activities of other organizations. Accordingly, the statistical population selected for this study includes all the employees in Tehran Municipality. In order to gather the required data, after determining the sample size as 384 participants using Krejcie and Morgan table, standard questionnaire of Denison for culture (2000) and organizational health (2008) were used. The current study is a quantitative one carried out as a descriptive survey. The validity and reliability of the study are confirmed using appropriate methods. Finally, in order to test the hypotheses of the study, various descriptive and inferential statistical tests were used. It was found out that the organizational survival of Municipality was affected by various cultural parameters, among which compatibility had the highest impact.
Job Satisfaction and Faculty Turnover Intentions: A Case of Pakistani Univers...IOSRJBM
Retaining faculty members has been a problem in many universities for decades. When competent teachers quit, they depart with critical knowledge and experience that are essential for maintaininga competitive advantage. The aim of this study was to measure the impact of four facets of job satisfaction on turnover intentions of faculty members of different universities of Rawalpindi/Islamabad. A 16-item, selfadministered questionnaire was used to gather data on independent and dependent variables. In questionnaire, researchers used 5 point Likert scale for variables to measure respondent’s possible responses. 110 questionnaires were completed and returned back. Pearson Correlation and Multiple Regression tests were used to test the hypothesis. The results showed that the three facets of job satisfaction i.e. remuneration, supervisory support and work life policies have significant and negative relationship with turnover intentions while recognition has insignificant relationship with turnover intentions and this relationship did not support the researchers’ prediction. Results have been discussed andrecommendations have been made for universities’ administrations.
Factors Affecting Work Motivation of Official Credit Staff in Ham Thuan Bac D...ijtsrd
This study inherits and develops the Kovach model 1987 , also references researches related to employee motivation to find out factors affecting the work motivation of staff working at official credit institutions in Ham Thuan Bac district, Binh Thuan province. Research data are collected from 176 employees working at official credit institutions by convenient sampling. Applying exploratory factor analysis and multivariate linear regression, the study has demonstrated impacting factors to employee motivation. They include learning and promotion opportunities, income and benefit, care and recognition, working environment, leadership style, nature of work, workplace relationship, empowerment, and job stability. Especially, the factor of learning and promotion opportunities has the most influence on the working motivation of official credit employees in Ham Thuan Bac district, Binh Thuan province. Nguyen Truong Thuan | Nguyen Quoc Nghi | Dinh Hoang Anh Tuan "Factors Affecting Work Motivation of Official Credit Staff in Ham Thuan Bac District, Binh Thuan Province" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47529.pdf Paper URL : https://www.ijtsrd.com/management/organizational-behaviour/47529/factors-affecting-work-motivation-of-official-credit-staff-in-ham-thuan-bac-district-binh-thuan-province/nguyen-truong-thuan
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...IOSRJBM
This study is based on the pros and cons of the Blue Ocean Strategy (BOS) that offers users a framework for creating uncontested market space and diverts the views from the current competition to the creation of innovative value and demand. The main objective of the study is to show the overall scenario of BOS and its impact on organizational performance. The study includes the history of BOS, comparison with Red Ocean Strategy (ROS), relevance of applying BOS, Applications, Critics, Findings, Recommendations and Conclusion. The Findings of the study tries to show the ultimate results of applying the BOS and the recommendations urge some precautions to apply BOS. The result found that BOS positively affects the organization performance if applied in organizations. Overall, the study is effective to decide the adoption of BOS within the organization. The recommendation for the organization is to do an in-depth analysis on BOS before implementation to see the suitability considering the company size, industry condition, and adaptability.
An Exploratory Study of Factors Influencing Corporate Sustainability on busin...AkashSharma618775
This study evaluates the effect of corporate sustainability on business performance of manufacturing
industries in USA, from 2012 to 2015. These Manufacturing industries are listed in Corporate Social
Responsibility Hub (CSRHub), Morning Star and Global Reporting Initiative (GRI). All data used in this report
were extracted from 37 manufacturing companies’ Sustainability, corporate social responsibility (CSR) and
annual reports. These companies are of diverse sectors such as Automobile, Health care, consumer goods, food,
beverages and technology. Quantitative method of research is used in this study; this also includes the use of
explanatory and descriptive research design. The main issues to be discussed in this study are Donation, Incident
rate reduction and Water Recycled as the independent variables, while Revenue is the dependent variable. Data
analysis was carried out using the regression analysis, descriptive statistics and correlation. E-views software
generated the data for further analysis. The findings imply that donation has a positive insignificance effect on
revenue, reduced incident rate reduction had positive significance effect on revenue and water recycling has
negative insignificant effect on revenue. In the future researches, larger samples of companies form diverse sectors
and subsectors should be studied to broaden the research on company performance especially the non-financial
aspect.
Democratic Leadership Styles and Industrial Relations Atmosphere of Some Sele...ijtsrd
This paper examined how democratic leadership style impacts on industrial relations atmosphere of some selected oil servicing firms in Port Harcourt. In line with the purpose of this paper as stated, the population of this study comprises of 761employees of some selected oil servicing firms in Port Harcourt. Taro Yamene sample size determination formula was used to determine the sample size. The objective of this study is to assess the relationship between democratic leadership styles and its impacts on industrial relations atmosphere. Questionnaire were the major instruments used in gathering primary data which were analyzed using regression analyses. The study found that democratic leadership style can achieve improvement along the terms of industrial relation atmosphere with more emphases on industrial harmony, if leaders are able to improve on the level of industrial relations peace or unity within the oil servicing firms in port Harcourt, we recommends that in order for firms to maintain their attractiveness in the industry, they must have be conscious the different leadership style available and be sure in applying it in different situation as things transpires within the industry. Ake, Okechukwu "Democratic Leadership Styles and Industrial Relations Atmosphere of Some Selected Oil Servicing Firms in Port Harcourt" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47616.pdf Paper URL : https://www.ijtsrd.com/management/management-development/47616/democratic-leadership-styles-and-industrial-relations-atmosphere-of-some-selected-oil-servicing-firms-in-port-harcourt/ake-okechukwu
The main objective of the current study is to investigate the effects of organizational culture on organizational health. Modern organizations are in a very intense competitive conditions and in order to survive, they need parameters which guarantee their survival. Therefore, the current study will investigate the significance of culture in this regard. Municipalities as one of the organizations providing urban services are in a position where it is possible to lose their impact due to the activities of other organizations. Accordingly, the statistical population selected for this study includes all the employees in Tehran Municipality. In order to gather the required data, after determining the sample size as 384 participants using Krejcie and Morgan table, standard questionnaire of Denison for culture (2000) and organizational health (2008) were used. The current study is a quantitative one carried out as a descriptive survey. The validity and reliability of the study are confirmed using appropriate methods. Finally, in order to test the hypotheses of the study, various descriptive and inferential statistical tests were used. It was found out that the organizational survival of Municipality was affected by various cultural parameters, among which compatibility had the highest impact.
The Thomas-Kilmann Conflict Mode Instrument assesses an individual’s typical behavior in conflict situations and describes it along two dimensions: assertiveness and cooperativeness. The model has 5 conflict modes.
This instrument is useful as a conflict resolution tool.
For more information on how to use the TKI with your team, contact the Corporate Learning Institute at 800-203-6734 or at corplearning@corplearning.com
Understanding Conflict Styles - using the Thomas Kilmann Conflict Model ktpworks
A recent presentation on Conflict Management given by Eleanor Yearwood of Key Talent Partners. The presentation reflects on the use of the Thoman Kilmann Conflict Model to help people be more aware of their - and others' - style of conflict handling, and how better awareness might help us adapt our style in order to have more influence. Adapting our style may also make us more effective negotiators, enhance interpersonal group dynamics and is applicable at every level of an organisation. The model also promotes the idea that different strategies work better in different situations, and by being more aware of our 'default' approach, we can learn to choose the most appropriate approach to give us the results we want in a particular context.
Looking for new products or services, check and imagine if one of the 37 ways is possible for your challenge.
Remarkable innovations combine different ways!
Enjoy!
We teach main idea as if it is a simple skill. Read the book, find the main idea, and now you are done! Main idea is a complex cognitive process requiring readers to use multiple strategies and skills. This presentation breaks the process down step by step.
Learn what transformational leadership is, the qualities of a transformational leader, how they transform themselves, others, organizations, the world! Discover the impact that your being a transformational leader can have on bringing about a change in the world that we need to see that is in the best interest of everyone, a moral change.
Similar to The Effect of Transformational Leadership on Market Orientation, Learning Orientation, Organization Innovation and Organization Performance (Study on Star-Rated Hotels in Central Java Province, Indonesia)
The present study aimed to examine the effect of the entrepreneurial orientation (EO) on organizational performance (OP). This study was motivated by the mixed findings in literature regarding the relationships between EO and organizational performance. Owing to the mixed results, a novel stream of research was created and this motivated further examining of the impact of other variables that may shed a light on the nature of the relationship. Several theories have been proposed in literature posit the direct relationships among strategies, resources and capabilities as antecedents of success. In this study, copies of questionnaires were distributed to 300 Libyan banks branches, where 200 copies of questionnaires were returned and analyzed. The proposed hypothesis was tested through PLS-SEM and the study results showed that EO positively predicted organizational performance.
The objectives of this study were to identify the level of market orientation of micro and small businesses and to identify whether there are differences in level of market orientation in terms of firm level characteristics. Accordingly, a sample of 49 micro and small businesses based on agriculture and trading sectors in Badulla district were studied. According to descriptive statistics, none of the firms is adopting a high level market orientation whereas all most all the firms are belonging to either medium or low level of adaptation of market orientation. The test results of independent sample t-test and One Way ANOVA proves that data support for a statistically significant (P<0.05) difference in the level of market orientation in terms of gender educational level of the owner manager and the business experience of the owner managers in the studied sample.
ABSTRACT: Meetings, Incentives, Conferences, Exhibition (MICE) are considered that they are not able to give the best performance yet, where the tends to upset the society. Furthermore, the perpetrators of several cases cannot be revealed yet. This study are to measure and analyze the extent to which the MICE organizations performance are influenced by leadership style, organizational culture, and job satisfaction. Study used a quantitative approach with path analysis as its method where 166 MICE CEO were used as its samples. The research findings show that Leadership style significantly affected towards the job satisfaction, but insignificantly affected the organizational performance. Organizational culture significantly affected job satisfaction, but insignificantly affected the organizational performance. Job satisfaction worked as a mediator of the effect between the relationships of leadership styleon organizational performance, and between the relationships of organization cultur to organizational performance.
The family relationship and the place of people living with HIV virus in thei...AkashSharma618775
Acquired Immuno Deficiency Syndrom (AIDS) is caused by Human immunodeficiency virus (HIV) is still
one of the diseases causing serious consequences for people living with HIV and their families as well as
Vietnamese society. People living with HIV want to be eligible to develop and assert themselves in society, first of
all, they must have the family's support. The relationship between people living with HIV and their place in the
family is one of the important factors that support them in the process of social integration.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Antecedents of Organizational Commitment of Lecturer in South Sumaterainventionjournals
Theoretically it was predicted that leadership style and organizational culture have partially and simultaneously affected employees commitment to organization. Fwthermore, those factors i.e. leadership style, organizational culture and organizational commitment have impact on lecture performance, this research was conducted at Palembang, South Sumatera. This research was conducted by using descriptive quantitative approach with questionnaire as the data gathering instrument. In addition to that explanatory approach was carried out to get a deeper insight on the research phenomenon 325 samples was collected from 5 (five) participating universitir in South Sumatera, Palembang. Data analysis was carried out by using Structural Equation Modelling (SEM). The research found that all independent variables have a significant effect on dependent variables both partially and simultaneously. Simultaneously it was found that leadership style and organizational culture affected organizational commitment by R2 = 0.77 with the most significant factor was on organizational communication. This result shows that there are still 43% of other factors that affected on organizational commitment. The next result was also gathered simultaneously which is the effect of leadership style, organizational culture and organizational commitment on employees ’performance with R2 = 0.79 with the most significant factor was on organizational commitment. This result shows that there are still 51% of other factors thataffected on employees 'performance that needs to be looked into in further research.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
The Moderating Effects of Entrepreneurial Learning on the Relationship betwee...theijes
The purpose of this study to know the Influence of Entrepreneurship Orientation on Business Performance with Entrepreneurial Learning as Moderating Variable in Small Medium Enterprises (SMEs) in Southeast Sulawesi (Studies in the Food Industry). Population totaled 109 IKM foods that have met the criteria spread over 4 (four) districts in Southeast Sulawesi province, that consists of: Konsel, Bombana, Kolaka and Kendari. The analysis technique used is Structural Equation Modeling (SEM) of AMOS7 and statistical software package SPSS (Statistic Packages for Social Sciences). In this study, researchers tested the validity of the simple correlation technique with SPSS version 12.0 The results of this study showed that the entrepreneurial orientation plays an important role in improving the performance of SMEs. The next entrepreneurial learning plays an important role in improving the performance of SMEs. There is a direct influence on the business performance of learning entrepreneurial SME food but not significant. The results of this study also prove that the entrepreneurial orientation moderated by entrepreneurial learning plays an important role in improving the performance of SMEs. This means that the entrepreneurial orientation will be stronger and not directly served to increase the performance of SMEs when supported with the right entrepreneurial learning in improving the performance of SMEs. This means that we need a learning that is applied so that the benefits of learning to give importance in the improvement of the performance of SMEs.
A Review Paper On Organizational Culture And Organizational PerformanceAlicia Buske
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www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Memorandum Of Association Constitution of Company.ppt
The Effect of Transformational Leadership on Market Orientation, Learning Orientation, Organization Innovation and Organization Performance (Study on Star-Rated Hotels in Central Java Province, Indonesia)
1. IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 12, Issue 6 (Sep. - Oct. 2013), PP 08-18
www.iosrjournals.org
www.iosrjournals.org 8 | Page
The Effect of Transformational Leadership on Market
Orientation, Learning Orientation, Organization Innovation and
Organization Performance
(Study on Star-Rated Hotels in Central Java Province, Indonesia)
Widiartanto1
, Suhadak2
1
Department of Business Administration, University of Diponegoro, Semarang, Indonesia
2
Department of Business Administration, University of Brawijaya, Malang, Indonesia
Abstract: The study is aimed at examining the Effect of Transformational Leadership on Market Orientation,
Learning Orientation, Organization Innovation and Organization Performance of the Star-Rated Hotels in
Central Java Province. The research samples cover 110 Marketing Managers of the Star-Rated Hotels in
Central Java Province. Sample determination applies totals sampling or population sampling in which all
members of the population are used as research samples and its Marketing Manager as the respondent
represents every star-rated organization/hotel. In examining the established model relationship, the data are
analyzed by using Structural Equation Modeling (SEM). The results reveal: Transformational Leadership does
not give significant effect on Organization Performance; Transformational Leadership gives significant effect
on Market Orientation; Transformational Leadership gives significant effect on Organization Innovation;
Transformational Leadership gives significant effect on Learning Orientation; Market Orientation does not
give significant effect on Organization Performance; Market Orientation gives significant effect on
Organization Innovation; Market Orientation does not give significant effect on Learning Orientation; Learning
Orientation gives significant effect on Organization Innovation; Learning Orientation does not give significant
effect on Organization Performance; and Organization Innovation gives significant effect on Organization
Performance.
The findings of this study are in line with Resources Based approach and Organizational Learning
Theory as well, meaning both approaches work synergistically in providing research model used in the star-
rated hotels in Central Java Province. It is evident that learning orientation variables give direct significant
effect on organization innovation and they give significant effect on organization performance through
organization innovation variables as mediating variables. The indicators showing the most dominant
contribution on research variables involve demonstrating acknowledgement towards Transformational
Leadership, market survey on Market Orientation, self-correction by exchanging ideas and identifying
environment on Learning Orientation, improving work practices for Organization Innovation and escalating
market share for Organization Performance.
Keywords: Transformational Leadership, Market Orientation, Learning Orientation, Organization Innovation
and Organization Performance
I. Introduction
The background of the study lies on the facts that there are several research gaps, among others, the
differences of the research results regarding the effect of leadership on organization performance as stated by
Kazt and Kahn (1978) and Peters and Waterman (1982) in Yukl (2009) shows that leadership gives positive
significant effect on organization performance. Meanwhile, Meindl et al. (1985) and Pfefer (1977) in Yukl
(2009) state that leadership does not give positive significant effect on organization performance. The next gap
is the contradictive research results relating to the effect of market orientation on organization performance.
Researchers such as Castro et al. (2005), Kirca et al. (2005) and Jain and Bhutia (2007) conclude that market
orientation has a positive significant effect on organization performance. On the other hand, some researchers
suggest different result that market orientation does not give positive significant effect on organization
performance (Jaworski and kohli, 1993; Selnes et al., 1996; Pelham, 1997; Deshpande et al., 2000; and Harris,
2001).
On the effect of market orientation on organization innovation, the research result also reveals
differences. Some researchers convince that market orientation gives positive significant effect on organization
innovation (Han et al., 1998; Vasques et al., 2001; Agarwal et al., 2003; Kirca, 2005; Mavondo et al., 2005;
and Tajeddini et al., 2006). However, Lawton and Parasuraman (1980), Lukas and Ferrell (2000), Verhees
(2004), and Kurtinainitiene (2005) state that market orientation does not give positive significant effect on
organization innovation. Further, another different research result is found in the effect of organization
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innovation on organization performance as proposed by Agarwal et al. (2003) and Im and Workman (2004).
Their findings show that organization innovation gives positive significant effect on organization performance.
Yet, Mavondo et al. (2005) and Darroch (2005) explain that organization innovation does not give positive
significant effect on organization performance.
Besides those research gap above, the study is motivated by several business phenomena, such as the
development of global tourism trend with innovation as the keyword. In fact, there are only a few researches
that specifically examine the new trend in global tourism and its impact. According to Damanik (2011), one of
the strategic study themes is the shift in the socio-economic profile of tourists marked by, among others, their
high mobility from one destination to another, the increasing proportion of the elderly yet dominated by baby-
boomer, and high involvement of middle-class in the touris markets that have strong implications on the changes
in travel management. On the practical level, the ways of handling them are different from handling
conventional tourists. Here, innovation is the key word—the introduction of new ideas, new products, new
designs and many others (Page, 2007).
Another interesting phenomenon that influences the hospitality industry in Indonesia is the rapid
growth of MICE industry (Meeting, Incentive, Convention, and Exhibition) which is also known as ―The
Meeting Industry‖. The term MICE in Indonesia is also known as convention tourism. The convention tourism
is part of tourism activities since a lot of tourism facilities are used in its implementation, therefore, it is
categorized as labor-intensive activity that gives great contribution to both labor supply and state revenues.
Based on the data acquired from ICCA Statistics Report (2010), the venues held for MICE activities are mostly
located in hotel reaching 43%, conference/exhibition hall 26%, universities 21.1% and others 9.5%.
Recently, world tourism has grown rapidly that tourism industry becomes a profitable business area, further it
encourages some improvements in economic sector. Indonesia as one of the world’s leading tourist destinations
with beautiful islands scattered throughout the archipelago also acquaires the benefit of the development of
tourism sector in the world. During the period of 2010 to the mid of 2011, there was an increase of 6.50% in
the number of foreign tourists visiting Indonesia through 19 main entrances.
Among the nineteen (19) main entrances for foreign visitors to enter Indonesia, there are two important
main entrances to Central Java Province and Special District of Yogyakarta—Adisumarmo Airport in Solo and
Adi Sucipto Airport in Yogyakarta. Both airports are widely used by foreign tourists when they visit Central
Java and Yogyakarta. Tourists usually go to Borobudur Temple, Prambanan Temple, Solo Palace, Yogyakarta
Palace, Dieng Plateau and many others. During the period of 2010 – 2011, there was an increase of 11.01% of
the visitors coming through Adi Sumarmo Airport and an increase of 3.17% of the visitors coming through Adi
Sucipto Airport.
Referring to the previous study and the phenomenon of tight competition in hospitality industry, hence,
the researcher is interested in analyzing the Effect of Transformational Leadership on Market Orientation,
Learning Orientation, Organization Innovation and Organization Performance in Star-Rated Hotels in Central
Java Province.
II. Theoretical Review
Regarding the definition of leadership, Yukl (2009) cites from some definitions proposed by experts in
leadership and eventually concludes that leadership involves the process of social influence deliberately
performed by a person towards another person to structure activities and relationship within an organization.
The differences over those definitions lie on—who use the influence, how to use the influence, what target is
going to be achieved from such influence and the result of the efforts in using such influence. Contemporary
leadership concept assumes that leadership is a reciprocal process of disseminating influence to achieve a
common goal (Lussier and Achua, 2001). One of the theories that emphasize the most comprehensive change in
leadership is the theory of transactional and transformational leadership (Bass and Avolio, 1993). The initial
idea of transactional and transformational leadership style was developed by James MacGregor Burns who
applied it in political context. Further, the idea was complemented and introduced in the organizational context
by Bernard Bass (Bass and Avolio, 1993).
According to Burns in Elencov (2002), the transformational leadership will lead its followers to
experience trust, admiration, loyalty and respect towards their leader, thus, the followers are motivated to make
a greter effort than what the leader has previously expected (Yukl, 2009). Transformational leadership involves
several aspects such as values, trust, integrity, fairness, ethics, vision, charisma, agents of change,
communication, goals and standards (Avolio and Bass, 2002). Burns (1978) defines transformational leadership
as a process to elevate the morality and motivation of the leaders and subordinates to a higher level.
Transformational leader tries to enhance the awareness of the subordinates by promoting higher idealism and
moral values like freedom, justice, peace, balance, humane, and not be based on emotional circumstances like
fear, greed, jealousy, and hatred.
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According to Lukas & Ferel (2000), market orientation is defined as the process of creating and delivering
market information to construct superior value for consumer. Meanwhile, Narver and Slater (1990) explain that
market orientation is a concept focussing on constructing high values for consumer. Although there are various
terms on market orientation, yet the four experts giving important contribution on the development of the
concept are Kohli and Jaworski and Narver and Slater. According to Kohli and Jaworski (1990a), market
orientation is ―organization wide generation of market intelligence pertaining to current and future customer
needs, dissemination of the intelligence across departments, and organization wide responsiveness to it.‖
Garvin (1993) defines organizational learning as a process in which the company learns to have such
expertise in creating, learning and transferring knowledge as well as attitude of the company to reflect the
company’s learning outcomes. Schwandt (1993) defines organizational learning as a system of action, actor,
symbol and process enabling an organization to transform information into valuable knowledge that can be used
by an organization to improve its long-term adaptive capacity. Lukas, et al. (1996) in Farrel (2000) states that
organizational learning is considered as the key to success for organization in the future. This concept is
different from neoclassic theory arguing that assets, land, labor and capital are the key elements of productivity.
Hunt & Morgan (1995) also state that information and knowledge are the key elements for success. Meanwhile,
Stata (1989) explains that learning orientation is a process in which individuals acquire new knowledge and
insight that further modify their behavior and attitudes.
Damanpour (1991) distinguishes three concepts of innovation in relation to organization;
organizational innovation, innovativeness and capacity to innovate. The innovativeness is defined as level in
which an individual or unit relatively adopt new ideas earlier than other members of the organization system do
(Avlonitis et al., 1994). Further, Hurley and Hult (1998) explain that the innovativeness is more like
organizational culture aspects reflecting the level of openness towards new ideas. On the other hand, the
capacity to innovate is considered as the organizational ability to adopt or implement new ideas, process and
new products. Hurley and Hult (1998) adapt these two concepts in his research model, and identify them as
organizational culture, while the capacity to innovate as organization performance. Organizational innovation is
defined as the adoption of new ideas or behavior within an organization (Damanpour, 1991). Innovation
involves all dimensions of organization activities; like new products and services or new production process
technology, structure and new administrative system, or planning or new program within an organization.
Organization performance is the parameter of success in an organization, which is measured
periodically. The result can be considered as the value of every arranged and implemented activity in order to
identify whether the strategy that has been developed and implemented works appropriately or even
inappropriately. Pelham & Wilson (1996) define organization performance as the success of having new product
and great market development in which company performance is measured through sales growth and market
share.
The Effect of Transformational Leadership on Market Orientation, Learning Orientation, Organization
Innovation and Organization Performance
The theory applied in the study of the effect of transformational leadership on organization
performance is the theory of transformational versus transactional leadership. The theory suggests that the role
of a leader in achieving organization compertence has been defined in a knowledge-based theory; the use of
transformational leadership can improve organization performance.
Furthermore, the theory applied in the effect of transformational leadership on market orientation is
market orientation theory. The theory suggests that the development of market orientation within a company is
not merely a simple matter. According to Siguaw et al. (1998), there are several constraints in the
implementation of market orientation; one of them is the corporate culture that long has been well established in
a company. In their study, Jaworski and Kohli (1993) reveal that additional factor is required in order to be able
to implement and develop market orientation in a company. In the context of marketing, when a company is
ready to direct its business into a market-oriented business; thus, leadership style is a critical factor that
determines the success of market oriented implementation in a company (Harris and Ogbonna, 2001). It happens
because leadership is indeed highly influential in the life of a company as a whole, including the creation of a
conducive atmosphere in the company for the growth of marketing culture.
The theory used in analyzing the effect of transformational leadership on organization innovation is
transformational versus transactional leadership theory. The theory explains that promoting organization
innovation requires transformational leadership to face the new economic era based on intellectual capital.
Transformative leadership enables an organization to learn and innovate through experiments —dialogue —
self-control— broad knowledge about organization (Senge et al., 1994).
The theory used in analyzing the effect of transformational leadership on learning orientation is
transformational versus transactional leadership theory. The theory explains that a transformative leader will
become a catalyst / mentor / facilitator / trainer in his/her learning capability. Organizational learning happens
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when managers do not only generate ideas but also have the ability to share ideas and reach a commitment to
learn among the members (Ulrich et al., 1993.). A leader who does not have a commitment to learn will trigger
a wave of organizational cynicism (Maani and Benton, 1999).
The theory used in analyzing the effect of market orientation on organization performance is market
orientation theory. Market orientation provides the company with ―the focus on the efforts and activities of both
individual and department in an organization to achieve excellent performance‖ (Kohli and Jaworski, 1990). In
addition, market orientation is also used to obtain information on market demand and to adjust the decision-
making based on market information. Consequently, the company needs to adjust market demand so that
customers’ satisfaction and loyalty can be improved (Kohli and Jaworski, 1990). The concept is in line with the
findings dicovered by the writer in which market orientation has direct, positive and significant impact towards
performance. The theory used in analysing the effect of market orientation on organization innovation is market
orientation theory. The elements of market orientation have long been associated with innovation in some
researchs. (eg, Agarwal et al., 2003; Han et al., 1998; Hult et al., 2004, Sandvik and Sandvik, 2003). Firstly,
market orientation has contributed access to new ideas from the market and encouraged the company to fulfil
the demand (Lucas and Ferrell, 2000). Secondly, strong market orientation reflects comprehensive
understanding upon customer needs and competitive situation (Salavou et al., 2004). Thirdly, market orientation
increases the possibility of having a better innovation based on the market needs, and therefore, it increases the
confidence of the company to use innovation as a managerial activity (Gatignon and Xuereb, 1997). Finally,
market orientation creates an environment that facilitates organizational innovation (Damanpour, 1991).
The theory used in the study of the effect of market orientation on learning orientation is market
orientation theory. Day (1994) explains that market orientation can be fostered by ―studying and learning‖ about
market. The view leads to a debate over the causality between learning orientation and market orientation.
However, Bell et al. (2002) tries to reconcile those different views by stating, ―Both learning orientation and
market orientation in an organization are mutually dependent.‖ We find that the relationship among learning
orientation, market orientation and innovation lies on the continuum of exploitation – exploration. Learning
orientation is about exploration and innovation is about exploitation, while market orientation stands in the
middle of both characteristics.
The theory applied in the study of the effect of learning orientation on organization innovation is
organizational learning theory. An organization can adapt as long as they can learn. Consequently, the fact that
learning is primarily concerned with sustainable organizational issues and the use of knowledge in an uncertain
competitive atmosphere (Morgan and Strong, 1997), has initiated a more convincing concept stating that
effective learning orientation deals with innovation. Indeed, Hurley and Hult (1998) propose evidences to show
that higher level of innovation is associated with the development of culture of learning.
The theory used in the study of the effect of learning orientation on organization performance is
organizational learning theory. Several empirical studies have demonstrated a positive relationship between
organizational learning and organization performance (Bontis et al., 2002; Ellinger et al., 2002; Tippins and
Sohi, 2003). The efforts to relate learning orientation and organizational performance in general reveal that an
organization having higher level of learning mostly outperform their competitors, particularly in a chaotic and
competitive environment (Dickson, 1992; DeGeus, 1988).
The theory used in analyzing the effect of organization innovation on organization performance is
organization innovation theory. Although there are some contradictory evidences (Armour and Teece, 1978;
Hage and Aiken, 1967; Kimberly and Evanisko, 1981; Rogers, 1995), most studies have shown the positive
effect of innovation on performance (Bierly and Chakrabarti, 1996; Brown and Eisenhard, 1995; Cave and
Ghemawat, 1992; Damanpour and Evan, 1984; Damanpour et al., 1989; Hansen et al., 1999; Roberts, 1999;
Wheelwright and Clark, 1992; Schulz and Jobe, 2001. Shortly, both theory and empirical studies show a
positive relationship between innovative activity and company performance.
III. Method
The research is conducted on 110 star-rated hotels in Central Java Province as the unit of analysis
spread over 25 (twenty-five) districts/municipalities. The variable data of Transformational Leadership, Market
Orientation, Learning Orientation, Organization Innovation and Organization Performance are primary data
collected through questionnaires and interviews. The activities of collecting data were conducted in 6 (six)
months, from January to June 2011.
Based on the sampling technique applied, totals sampling or population sampling, all members of the
population are used as research samples and its Marketing Manager as the respondent represents every star-rated
organization/hotel. Based on the existing data, there are 118 star-rated hotels in Central Java Province in 2011.
At the time of data collection, 8 (eight) star-rated hotels could not be observed in order to obtain the primary
data. They had their own reasons, as follows; one hotel was in the process of merger, another one did not want
to fill out the questionnaire because of the confidentiality reason, three hotels were closed and three other hotels
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were sold and had been inactive for almost 2 years. Thus, the total number of the research samples is 110
questionnaires that will be analyzed and processed in the study.
To describe the variables of Transformational Leadership, Market Orientation, Learning Orientation,
Organization Innovation and Organization Performance, Descriptive Statistical Method is used. Meanwhile,
SEM Method is used to examine and analyse the inter-effect of the variables, and test–t is used to examine
research hypotheses.
Conceptual Framework And Hypotheses
The hypotheses model of this research can be seen on Figure 1 below:
Figure 1. Research Hypotheses Model
Based on the hypotheses model above, hence, the hypotheses of the research are:
Hypothesis (1) there is a significant effect of transformational leadership on organization performance.
Hypothesis (2) there is a significant effect of transformational leadership on market orientation.
Hypothesis (3) there is a significant effect of transformational leadership on organization innovation.
Hypothesis (4) there is a significant effect of transformational leadership on learning orientation.
Hypothesis (5) there is a significant effect of market orientation on organization performance.
Hypothesis (6) there is a significant effect of market orientation on organization innovation.
Hypothesis (7) there is a significant effect of market orientation on learning orientation.
Hypothesis (8) there is a significant effect of learning orientation on organization innovation.
Hypothesis (9) there is a significant effect of learning orientation on organization performance.
Hypothesis (10) there is a significant effect of organization innovation on organization performance.
IV. Result
SEM Assumptions Testing
There are several test performed in the assumptions testing of SEM, i.e. normality, linearity, and
outlier. The assumption of multivariate normality is tested by using AMOS 18 software as seen in Appendix 5A.
If the value of CR Multivariate data is smaller than Z 5%, which is 1.96%, the normal assumption of
multivariate is fulfilled. However, if the value of CR Multivariate data is bigger than 1.96%, the normal
assumption of multivariate data is not fulfilled, which means the data is not normal. The value of CR
Multivariate data is 0.772 (Appendix 5A), which is less than 1.96; therefore, the normal assumption of
multivariate is fulfilled.
To examine the existence of an outlier, the researcher uses mahalanobis distance (Md). Mahalanobis
distance is a distance measuring the distance of the central point of the ―average‖ data from each observation
point. Here, observation point is the questionnaire number of the respondent. The examination of outliers
multivariate is performed by using mahalanobis criteria at p<0.001 level. Mahalanobis distance is evaluated by
using
2
on the loose degree which is based on the number of indicators used. Here the number of indicators
are 30 and the statistic table defines 2
30 = 53.301. Based on the rules of decision-making, if Md is determined
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> 53.301 from the observation point, the observation point is considered outlier. Meanwhile, if Md is
determined < 53.301 from the observation point, the observation point is not considered as outlier. From the
Mahalanobis distance table (Appendix 5B), the farthest observation point is 86 with the Md=48.698. Comparing
to the value of
2
30 = 53.301, the value of Md at point 86 is <53.301. Hence, it can be concluded that all data
are not considered as outlier, and the assumption of data absence is fulfilled.
Testing of linearity assumption is done by applying Curve Fit method and is counted by using SPSS software.
Parsimony principle is used as reference. When all models used as the basis of testing tend to be significant or
non-significant, then, the model is said to be linear. The specifications of the models used as the basis of testing
are linear model, quadratic, cubic, inversion, logarithmic, power, compound, growth and exponential.
Goodness of Fit SEM
The theoretical model of the research conceptual framework is considered fit when it is supported by
empirical data. The testing results of goodness of fit overall model correspond to the SEM result analysis as seen
on Table 1 below:
Tabel 1. The Testing Results of Goodness of Fit Overall Model
Criteria Cut-of value Model Result Description
Chi square small 404.568 Poor Model
p-value 0.05 0.359 Good Model
CMIN/DF ≤ 2.00 1.024 Good Model
GFI 0.90 0.819 Poor Model
AGFI 0.90 0.787 Poor Model
TLI 0.95 0.993 Good Model
CFI 0.95 0.994 Good Model
RMSEA ≤ 0.08 0.015 Good Model
The testing results of Goodness of Fit Overall based on table 1 above show the five criteria; p-value, CMIN/DF,
TLI, CFI and RMSEA indicate a good model. According to Arbuckle and Wothke in Solimun (2009), the best
criteria used as indication of the goodness of the model is Chi Square/DF that is less than 2, and RMSEA is
below 0.08. In this study, the values of CMIN/DF and RMSEA have met the cut off value.
Measurement Model
Measurement model is measured from the loading factor (standardize coefficient) value of each
indicator to the latent variable. Loading factor value indicates the weight of each indicator indicating the
measure of each variable. Indicator with a big loading factor indicates that it acts as the most dominant variable
measure. The result analysis of the confirmatory factors against the indicators of six variables can be seen on the
table below.
Table 2. Testing Result of Measurement Model Variabel
Variable/indicator Standardize P-Value
Transformational Leadership (X1):
Giving Examples (X1.1) 0.753 0.000
Fostering Optimism (X1.2) 0.754 0.000
Giving Motivation (X1.3) 0.798 0.000
Providing Idea (X1.4) 0.811 0.000
Encouraging Innovation (X1.5) 0.733 0.000
Encouraging the involvement in Decision-Making (X1.6) 0.770 0.000
Providing Direction (X1.7) 0.695 0.000
Conferring Award (X1.8) 0.816 Fix
Market Orientation(Y1):
Meeting Customer (Y1.1) 0.804 Fix
Conducting Market Survey (Y1.2) 0.808 0.000
Circulating Documents (Y1.3) 0.732 0.000
Disseminating Customer Satisfaction Data (Y1.4) 0.749 0.000
Reviewing Product Development (Y1.5) 0.745 0.000
Listening to Customer Complaints (Y1.6) 0.784 0.000
Learning Orientation (Y2):
Learning is considered as a shared-vision (Y2.1) 0.715 0.000
Having the commitment to achieve the goal (Y2.2) 0.702 0.000
Openning for Self-Correction through sharing thoughts
(Y2.3)
0.770 0.000
Recognizing Environment (Y2.4) 0.770 0.000
Analyzing Failure (Y2.5) 0.696 0.000
Using Method of Exchanging Experiences (Y2.6) 0.654 Fix
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Variable/indicator Standardize P-Value
Organization Innovation (Y3):
Improving Working Practices (Y3.1) 0.795 0.000
Training Employees routinely (Y3.2) 0.663 0.000
Creating New Services (Y3.3) 0.666 0.000
Creating Modification of Services (Y3.4) 0.735 0.000
Developing New Ideas (Y3.5) 0.741 0.000
Encouraging Initiatives (Y3.6) 0.746 Fix
Organization Performance (Y4):
The Decreasing Number of Complaints (Y4.1) 0.616 Fix
The Increasing Number of Room Occupations (Y4.2) 0.620 0.000
The Increasing Number of Market Share (Y4.3) 0.797 0.000
The Increasing Number of New Customers (Y4.4) 0.735 0.000
Description: significant (p-value < 0,05)
Structural Model
In this structural model, ten hypotheses regarding the relationship among variables are examined
(direct effect). Below is the complete testing result of the relationship among research variables.
Table 3. Structural Model of SEM Result: Direct Effect
Hypothesis
Number
Relationship among Variables Standardize P-value
1 Transformational Leadership (X1) towards Organization
Performance (Y4)
0.139 0.222 ns
2 Transformational Leadership (X1) towards Market
Orientation (Y1)
0.252 0.018*
3 Transformational Leadership (X1) towards Organization
Innovation (Y3)
0.249 0.018*
4 Transformational Leadership (X1) towards Learning
Orientation (Y2)
0.294 0.008*
5 Market Orientation (Y1) towards Organization
Performance (Y4)
0.17 0.126 ns
6 Market Orientation (Y1) towards Organization Innovation
(Y3)
0.257 0.013*
7 Market Orientation (Y1) towards Learning Orientation
(Y2)
0.166 0.130 ns
8 Learning Orientation (Y2) towards Organization
Innovation (Y3)
0.26 0.020*
9 Learning Orientation (Y2) towards Organization
Performance (Y4)
-0.011 0.921 ns
10 Organization Innovation (Y3) towards Organization
Performance (Y4)
0.427 0.003*
Description: the mark * indicates significant, and the mark ns
indicates nonsignificant
The Result of the Structural Model is seen on Figure 2 below:
Figure 2. The Diagram of SEM Analysis Result Lines
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Based on the data on Table 3 and Figure 2 above, the results of the structural model test are as follows:
1. There is a non-significant effect of Transformational Leadership on Organization Performance. It can be
seen from the p-value of 0.222 > alpha/error rate (0.05). It means, regardless the value of Transformational
Leadership, it will not affect the value of Organization Performance.
2. There is a significant effect of Transformational Leadership on Market Orientation. It can be seen from the
p-value of 0.018 < alpha/error rate (0.05). The positive coefficient indicates that the relationship between
Transformational Leadership and Market Orientation is in line. It means, the better value of
Transformational Leadership is parallel with the better Market Orientation value.
3. There is a significant effect of Transformational Leadership on Organization Innovation. It can be seen
from the p-value of 0.018 < alpha/error rate (0.05). The positive coefficient indicates that the relationship
between Transformational Leadership and Organization Innovation is in line. It means, the better value of
Transformational Leadership is parallel with the Organization Innovation value.
4. There is a significant effect of Transformational Leadership on Learning Orientation. It can be seen from
the p-value of 0.008 < alpha/error rate (0.05). The positive coefficient indicates that the relationship
between Transformational Leadership and Learning Orientation is in line. It means, the better value of
Transformational Leadership is parallel with the Learning Orientation value.
5. There is a non-significant effect of Market Orientation on Organization Performance. It can be seen from
the p-value of 0.126 > alpha/error rate (0.005). It means, regardless the value of Market Orientation, it will
not affect the value of Organization Performance.
6. There is a significant effect of Market Orientation on Organization Innovation. It can be seen from the p-
value of 0.013 < alpha/error rate (0.005). The positive coefficient indicates that the relationship between
Market Orientation and Organization Innovation is in line. It means, the better value of Market Orientation
is parallel with the Organization Innovation value.
7. There is a non-significant effect of Market Orientation on Learning Orientation. It can be seen from the p-
value of 0.130 > alpha/error rate (0.05). It means, regardless the value of Market Orientation, it will not
affect the value of Learning Orientation.
8. There is a significant effect of Learning Orientation on Organization Innovation. It can be seen from the p-
value of 0.020 < alpha/error rate (0.05). The positive coefficient indicates that the relationship between
Learning Orientation and Organization Innovation is in line. It means, the better value of Learning
Orientation is parallel with the Organization Innovation.
9. There is a non-significant effect of Learning Orientation on Organization Performance. It can be seen from
the p-value of 0.921 > alpha/error rate (0.05). It means, regardless the value of Learning Orientation, it will
not affect the value of Organization Performance.
10. There is a significant effect of Organization Innovation on Organization Performance. It can be seen from
the p-value of 0.003 < alpha/error rate (0.05). The positive coefficient indicates that the relationship
between Organization Innovation and Organization Performance is in line. It means, the better value of
Organization Innovation is parallel with the Organization Performance value.
This study elaborates the previous research of Gowen et al. (2009), Ensley et al. (2006), Meindl et al.
(1985), and Pfeffer (1977) (Hypothesis 1); Felton (1959), Harris (1998), Chaganti and Sambharya (1987),
Messikomer (1987), Wonget et al. (1989), Harris and Piercy (1999), Harris and Ogbonna (2001), Najib (2003)
(Hypothesis 2); Mumford et al. (2002), Amabile (1998), Yukl (2001), Jung (2001), Schein (1992), Bass and
Avolio (1997), Scott and Bruce (1994), Kanter (1983), McDonough (2000), Manz et al. (1989), Tushman and
Nadler (1986), Harbone and Johne (2003), Sethi (2000), Jung et al. (2003), Garcia-Morales et al. (2008/1),
Garcia-Morales et al. (2008/2), Gumusluoglu and Ilsev (2009/1), Jung et al. (2004), Garcia-Morales et al.
(2006), Gumusluoglu and Ilsev (2009/2), Senge et al. (1994) (Hypothesis 3); Coad and Berry (1998)
(Hypothesis 4); Jaworski and Kohli (1993), Selnes et al. (1996), Pelham (1997), Deshpande et al. (2000),
Harris (2002), Han et al. (1998) (Hypothesis 5); Han et al. (1998), Hult et al. (2004), Sandvik and Sandvik
(2003), Kirca et al. (2005), Wu et al. (2008), Han et al. (1998), Jimenez-Jimenez and Valle (2008), Lin et al.
(2008), Kirca et al. (2005), Mavondo et al. (2005), Tajeddini et al. (2006), Lado (2001), Agarwal et al. (2003)
(Hypothesis 6); Lee and Tsai (2005), Akgun et al. (2007), Rhee et al. (2009), Calantone et al. (2002), Sinkula et
al. (1997), Wu et al. (2008), Lin et al. (2008), Farrell (1999), Garrido and Camarero (2010), Liu et al. (2002),
Hult et al. (2004), Keskin (2006), Garcia-Morales et al. (2006) (Hypothesis 8); Wu et al. (2008), Farrell et al.
(2008), Garrido and Camarero (2010), Baker and Sinkula (1999), Slater and Narver (1995), Droge, Vickery and
Markland (1995) (Hypothesis 9); and Garcia-Morales et al. (2008), Hurley and Hult (1998), Loof and Heshmati
(2002), Andneels and Kleinschmidt (2001), Wu et al. (2008), Li-An Ho (2011), Camison and Lopez (2010),
Correa et al. (2007), Damanpour (1991), Gopalakrishnan (2000), Rhee (2009), Calantone et al. (2002), Garcia-
Morales et al. (2006), Keskin (2006), Lee and Tsai (2005), Garcia-Morales and Llorens-Montes (2006), Han et
9. The Effect Of Transformational Leadership On Market Orientation, Learning Orientation,
www.iosrjournals.org 16 | Page
al. (1998), Jimenez-Jimenez and Valle (2008), Lin et al. (2008), Garrido and Camarero (2010), Agarwal et al.
(2003), Subin-Im and Workman (2004), Hurley et al. (2003), Porter (1990), Damanpour and Evan (1984),
Damanpour, Szabat, and Evan (1989), serta Zahra, de Belardino, and Boxx (1988) (Hypothesis 10).
V. Conclusion And Recommendation
Several conclusions of this study involve (1) Transformational Leadership does not have a significant
effect on Organization Performance, (2) Transformational Leadership has a significant effect on Market
Orientation, (3) Transformational Leadership has a significant effect on Organization Innovation, (4)
Transformational Leadership has a significant effect on Learning Orientation, (5) Market Orientation does not
have a significant effect on Organization Performance, (6) Market Orientation has a significant effect on
Organization Innovation, (7) Market Orientation does not have a significant effect on Learning Orientation, (8)
Learning Orientation has a significant effect on Organization Innovation, (9) Learning Orientation does not have
a significant effect on Organization Performance and (10) Organization Innovation has a significant effect on
Organization Performance. The study presents recommendations to the following parties (1) Future
Researcher: future researcher can develop similar or different model by using several or all
dimensions/indicators of learning orientation and organization performance variables. The same research model
can also be developed by using different research object; (2) Owners of Star-Rated Hotels: The owners of star-
rated hotels should maintain the principles of transformational leadership, increase market orientation level,
enhance learning orientation, improve organization innovation and elevate organization performance; (3) Local
Government: Local Government should supervise the star-rated hotels and create conducive atmosphere in
promoting tourism.
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