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REVIEW OF LEADERSHIP STYLES IN PERSPECTIVE
OF DYNAMIC CAPABILITIES: AN EMPIRICAL
RESEARCH ON MANAGERS IN MANUFACTURING
FIRMS
Author: Bülent AKKAYA
Prepared By:
Muhammad Saqib
LinkedIn: linkedin.com/in/msaqibtahir
INTRODUCTION
 In this research, it is considered firstly how the leadership styles link with firms’ dynamic capabilities, directly or
indirectly affecting their outcomes.
 The reason for focusing on types of leadership, rather than on a kind of leadership is that leaders’ impact on
firms dynamic capabilities will depend on the particular leadership practices in which they attract.
 Two different strategies were used to identify types of leadership and their impact on firms’ dynamic
capabilities.
 The first strategy involved a comparison between the impact of leadership and dynamic capabilities.
 The second strategy for identifying seven types of leadership, which were decided by managers participated in
the research, involved an approach based on a detailed analysis of dynamic capabilities used mostly in studies
of the leadership - outcome and performance relationship.
1/9/2023 2
LITERATURE REVIEW
 Agile Leadership: A postmodern style of leadership: -
 Agile leadership theory has its empirical origins in studies undertaken during the late 1990’s.
 Weick (1995) points to the development in thinking on effective leadership and looked at the literature from a sense
making, which is closely related agility, instead of discovery perspective.
 Agile leader can be expressed as the leader that sense the internal and external needs of firms and adapts them to the
changing technology and environment in line with the needs of the firm (Kouznes and Posner, 1999; Higgs and Rowland,
2001).
 Transformational Leadership: A modern style of leadership
 Transformational leadership emphasizes higher motive development and spirits up their followers’ motivation and positive
emotions and feelings by creating an inspiring vision of the future and it consists of five factors (Bass, 1997; Avolio & Bass,
2002).
1/9/2023 3
LITERATURE REVIEW
 Transactional Leadership: A mutual exchange style of leadership
 In contrast to transformational leadership, transactional leadership relies on a set of clearly defined exchanges between
leaders and their followers and it represents three factors (Bass, 1997; Avolio & Bass, 2002).
 Hubristic Leadership: An egocentric style of leadership
 Sadler-Smith et al. (2018) define hubristic leader as powerful and successful individuals, excessively confident and ambitious
in their strategic decision-making choices.
 Hubristic leader has been characterized as excessive self-confidence, exaggerated self-belief and contempt for the advice
and criticism of others (Claxton et al., 2015).
 Democratic Leadership: A fair style of leadership
 Democratic leadership, as defined by Bass (1990), is the relationship between two or more group members that consists of
production processes in relation to the wishes and expectations of group members.
1/9/2023 4
LITERATURE REVIEW
 Autocratic Leadership: A discipline style of leadership
 Peterson (1997) stated that autocratic leadership has mainly been described in terms of the leader making all the decisions.
 Bass (1990), Cartwright & Zander (1968) and Yukl (1999) define autocratic leadership as being unattended by the social and
emotional aspects of communities such as group cohesion and community promotion as an effective social organization.
 Charismatic Leadership: A leadership style that people need more
 Charismatic leaders are different from ordinary people; they have supernatural or extraordinary powers and their
characteristics are inherent (Conger et al., 1997; Yukl, 1999).
 They are leaders with the persuasive ability to express the emotions of their adherents based on these motivational
characteristics (Bass, 1985; Waldman et al., 1990).
1/9/2023 5
METHODOLOGY
 The sample of this research is composed of firms operating in manufacturing in West of Turkey.
 Simple random sampling was used to get data from managers in different levels. Two measuring instruments
were used to solicit the responses of these managers. One of them is 5 Likert scale 5(1 totally disagree- 5 totally
agree) which measure managers’ dynamic capabilities.
 This questionnaire was developed by Teece (2007) and then was developed and translated to Turkish by Bezci
(2015). The questionnaire consists of 15 questions and measures a firm’s dynamic capabilities. 214 responses were
gathered from managers by that questionnaire. This data was analyzed by SPSS program to see the level of
dynamic capabilities of managers.
 In this research, bottom-up confirmation method and content analysis were used to analysed the data obtained
from 80 managers by applying MAXMaps, the method illustrates the relations among variables.
1/9/2023 6
RESULTS
 Results shows that while agile and transformational leaders have mainly the same common behaviors and
characteristics autocratic, transactional leaders have the same. A hubristic leader has mainly the same
characteristic with charismatic autocratic leader.
 Results also indicated that transformational and agile leaders have mainly the same characteristics such as
motivation followers, being role model and has vision. Hubristic and autocratic have some common
characteristics such as depends on tradition, however, hubristic and charismatic have characteristics in taking
risks, being highly confident.
 After this content analysis, the Dynamic Capabilities questionnaire to 214 to participants to get data about their
dynamic capabilities.
 Results described that while most of the managers in those firms are agile few managers are hubristic. Agile leaders have
highly dynamic capabilities then transformational leaders. In contrast, autocratic has the least dynamic capabilities then
transactional leaders.
 Therefore, it can be concluded that agile leaders and transformational leaders have high dynamic capabilities.
1/9/2023 7
DISCUSSION & CONCLUSION
 Prior research suggested that managers’ leadership styles could influence an organization’s dynamic capabilities.
A major avenue whereby this positive impact arises is held to be the establishment of dynamic capabilities of a
firm that motivate employees and provides support for environment change and technological innovation.
 Agile and transformational leadership by the top manager can enhance firms’’ dynamic capabilities indirectly or
directly by creating an organizational atmosphere where employees and followers are encouraged, motivated,
inspired to be a role model and open to change and innovation. Leaders, who delegate more autocratic and
egocentric behaviors to their employees, are less innovative and close to change in environment and marketing.
 Future studies can examine this issue based on a quantity or quality analysis that encompasses leadership styles
with organizational culture or some other different organizational and environmental variables even
characteristics of leadership discussed above.
1/9/2023 8

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REVIEW OF LEADERSHIP STYLES IN PERSPECTIVE.pptx

  • 1. REVIEW OF LEADERSHIP STYLES IN PERSPECTIVE OF DYNAMIC CAPABILITIES: AN EMPIRICAL RESEARCH ON MANAGERS IN MANUFACTURING FIRMS Author: Bülent AKKAYA Prepared By: Muhammad Saqib LinkedIn: linkedin.com/in/msaqibtahir
  • 2. INTRODUCTION  In this research, it is considered firstly how the leadership styles link with firms’ dynamic capabilities, directly or indirectly affecting their outcomes.  The reason for focusing on types of leadership, rather than on a kind of leadership is that leaders’ impact on firms dynamic capabilities will depend on the particular leadership practices in which they attract.  Two different strategies were used to identify types of leadership and their impact on firms’ dynamic capabilities.  The first strategy involved a comparison between the impact of leadership and dynamic capabilities.  The second strategy for identifying seven types of leadership, which were decided by managers participated in the research, involved an approach based on a detailed analysis of dynamic capabilities used mostly in studies of the leadership - outcome and performance relationship. 1/9/2023 2
  • 3. LITERATURE REVIEW  Agile Leadership: A postmodern style of leadership: -  Agile leadership theory has its empirical origins in studies undertaken during the late 1990’s.  Weick (1995) points to the development in thinking on effective leadership and looked at the literature from a sense making, which is closely related agility, instead of discovery perspective.  Agile leader can be expressed as the leader that sense the internal and external needs of firms and adapts them to the changing technology and environment in line with the needs of the firm (Kouznes and Posner, 1999; Higgs and Rowland, 2001).  Transformational Leadership: A modern style of leadership  Transformational leadership emphasizes higher motive development and spirits up their followers’ motivation and positive emotions and feelings by creating an inspiring vision of the future and it consists of five factors (Bass, 1997; Avolio & Bass, 2002). 1/9/2023 3
  • 4. LITERATURE REVIEW  Transactional Leadership: A mutual exchange style of leadership  In contrast to transformational leadership, transactional leadership relies on a set of clearly defined exchanges between leaders and their followers and it represents three factors (Bass, 1997; Avolio & Bass, 2002).  Hubristic Leadership: An egocentric style of leadership  Sadler-Smith et al. (2018) define hubristic leader as powerful and successful individuals, excessively confident and ambitious in their strategic decision-making choices.  Hubristic leader has been characterized as excessive self-confidence, exaggerated self-belief and contempt for the advice and criticism of others (Claxton et al., 2015).  Democratic Leadership: A fair style of leadership  Democratic leadership, as defined by Bass (1990), is the relationship between two or more group members that consists of production processes in relation to the wishes and expectations of group members. 1/9/2023 4
  • 5. LITERATURE REVIEW  Autocratic Leadership: A discipline style of leadership  Peterson (1997) stated that autocratic leadership has mainly been described in terms of the leader making all the decisions.  Bass (1990), Cartwright & Zander (1968) and Yukl (1999) define autocratic leadership as being unattended by the social and emotional aspects of communities such as group cohesion and community promotion as an effective social organization.  Charismatic Leadership: A leadership style that people need more  Charismatic leaders are different from ordinary people; they have supernatural or extraordinary powers and their characteristics are inherent (Conger et al., 1997; Yukl, 1999).  They are leaders with the persuasive ability to express the emotions of their adherents based on these motivational characteristics (Bass, 1985; Waldman et al., 1990). 1/9/2023 5
  • 6. METHODOLOGY  The sample of this research is composed of firms operating in manufacturing in West of Turkey.  Simple random sampling was used to get data from managers in different levels. Two measuring instruments were used to solicit the responses of these managers. One of them is 5 Likert scale 5(1 totally disagree- 5 totally agree) which measure managers’ dynamic capabilities.  This questionnaire was developed by Teece (2007) and then was developed and translated to Turkish by Bezci (2015). The questionnaire consists of 15 questions and measures a firm’s dynamic capabilities. 214 responses were gathered from managers by that questionnaire. This data was analyzed by SPSS program to see the level of dynamic capabilities of managers.  In this research, bottom-up confirmation method and content analysis were used to analysed the data obtained from 80 managers by applying MAXMaps, the method illustrates the relations among variables. 1/9/2023 6
  • 7. RESULTS  Results shows that while agile and transformational leaders have mainly the same common behaviors and characteristics autocratic, transactional leaders have the same. A hubristic leader has mainly the same characteristic with charismatic autocratic leader.  Results also indicated that transformational and agile leaders have mainly the same characteristics such as motivation followers, being role model and has vision. Hubristic and autocratic have some common characteristics such as depends on tradition, however, hubristic and charismatic have characteristics in taking risks, being highly confident.  After this content analysis, the Dynamic Capabilities questionnaire to 214 to participants to get data about their dynamic capabilities.  Results described that while most of the managers in those firms are agile few managers are hubristic. Agile leaders have highly dynamic capabilities then transformational leaders. In contrast, autocratic has the least dynamic capabilities then transactional leaders.  Therefore, it can be concluded that agile leaders and transformational leaders have high dynamic capabilities. 1/9/2023 7
  • 8. DISCUSSION & CONCLUSION  Prior research suggested that managers’ leadership styles could influence an organization’s dynamic capabilities. A major avenue whereby this positive impact arises is held to be the establishment of dynamic capabilities of a firm that motivate employees and provides support for environment change and technological innovation.  Agile and transformational leadership by the top manager can enhance firms’’ dynamic capabilities indirectly or directly by creating an organizational atmosphere where employees and followers are encouraged, motivated, inspired to be a role model and open to change and innovation. Leaders, who delegate more autocratic and egocentric behaviors to their employees, are less innovative and close to change in environment and marketing.  Future studies can examine this issue based on a quantity or quality analysis that encompasses leadership styles with organizational culture or some other different organizational and environmental variables even characteristics of leadership discussed above. 1/9/2023 8