Research Essay

Business Management Dyna mics

Vol.3 , No. 5, Nov 2013 , p p.15-26

©Society for Business and Management Dynamics

Transformational Leadership and Organizational Culture as Predicto rs of Employees

Attitudinal Outcome s

Manal ElKord y 1

Abstr act

Organizational com mitm ent and employee job sa tisfaction are pre sen ted in the

literature as key wo rk atti tudes leading to higher organizational performanc e.

This paper examines the extent to which tra nsformational leadership and

organizational culture influe nc e employees' at titudinal out comes , as well as the

effect of job satisfac tion on organizational commit men t. Data for the st udy was

collected from Egyptia n employees working across seven industries. A s tru ct ure

equation model was used to te st the hypothesized relations. Results provided

support to all of the research hypotheses. 47% of the variance in job satisfaction

was explained by perceptions of organiz ational cul ture and tra nsformational

leadership, with cult ure having the s tronger impact, while 69% of the variance

in organizational commitmen t was explained by employee job satisfaction,

cultu re, a nd transfor mational leadership, with satisfac tion having the stro ngest

impact, followed by c ulture and tran sformational leadership. With in creasing

globalization, the findings driven from this study is expected to advance the

existing unders tanding of the intera ction bet wee n organization c ultur e,

transforma tiona l leadership, and employees' attit udes in the con text of an Arab

coun try such as Egypt. Implications for theory and practice are discuss ed and

possible directions for f utu re r esearch a re pres ent ed.

Key wo rds: T ransfor mational

leadership; Or ganizational

culture; Or gani zational

commit ment ; J ob satisfaction;

Egypt

Av ailable online

www .bmdy namics.com

ISSN: 2047 -7031

INTRODU CTION

Transformational l eadership has emer ged as the most popular appr oach to explain leaders influ ence on

organizational perfor mance. It has shown consistent relationship with various performance indicators

across differ ent cultu res (Bass, 1997; Avolio, Bass and Jung, 1999). H owe ver , co mpare d t o oth er par ts of

the world , relati vely few stu dies have consider ed it in d evel oping countri es and especially in Egypt

(Moha mad, 2012 ; Shahin and Wright, 2004 ). Effecti ve o rganizational culture characterized by

adaptability, invol ve ment , consistency and mission were found as significant predicto r of organization

perfo rmance across dif fer ent cultu res ( e.g ., Fey and Denison, 2003) ; however, less attention was direc ted

to its impact on attitudinal outcomes such as job satisfactio n and organizational commit ment ( Mo meni,

Marjani and Saadat, 2012). Organizational commitment an d job satisfaction are two attitudes that are

related to vari ous work outco mes such as employee pe rfo rmance and turnove r inte ntions (Shore and

Martin, 1989). De spite the long held acknowle dge ment that the two attit udes are r elated, the direc tion of

causation is still controversial (Lum ley et al, 2011; Lok and Crawford, 2004 ). Lack of research was noticed

regarding the exploration o f the co mbined ef fect of transfo r mational leadership and Denison' ef fecti ve

culture on e mploye es' attitudinal outc omes . This gap in the li teratu re is mor e pro found in E gypt . Th e

purpose o f this study is to explor e th e e ff ect of transfor mational lead ership and ef fec tive or ganizational

cul ture on e mplo yees' attitu dinal outcomes, taking int o consideration the i mpact o f e mploy ees' job

satisfaction on organizational commit ment .

Definit ions

Trans form ati on al Le aders hi p

The the ory of transformati onal leadership was first intro duced by Burn s (1978) , and elaborat ed ,

conceptualized and operationalized by Bass and many other scholars (Bass and Rigo, 2012 ). Burns

diffe rentiate d leadership fro m powe r holding and set it apart from b rute po wer . According t o Burns

transforma tional leadership is the p rocess through which leaders and followers engage in a way that

raises both of the m to higher le vels of moti vation and morality r esulting in a relationship of mutual

stimulation and elevation that may conver t followe rs to leaders and lead ers to moral agent s.

1 Alexandria University, Egypt , Faculty of Com merce; Business Administration Department

E-mai l: melk ordy@hotma il.co m Business Management Dyna mics

Vol.3 , No. 5, Nov 2013 , p p.15-26

©Society for Business and Management Dynamics

Transformational leaders mo ve f ollowe rs bey ond their i mmediate sel f interes t throu gh idealized

influence or charisma, inspirational moti vation, int ellectual sti mulation, and individualized considerati on

(Bass, 1999) . Idealized influence is reflect ed in the charismatic actions of leaders based on high -order

ideals, which inspires confidence in followers and ca uses them to identif y with the m. I nspirational

moti vation is displayed wh en the l eader ar ticulates appealing visions to follo wers and encou rages th e m

to pursue ambiti ous goals , and provi des meaning to the task on hand. I ntellectual stimulation ref lec ts the

way leaders encourag e subordinates t o thi nk creati vely , tak e risks and challenge stable assumptions .

Individualized consideration is practiced when leaders show concern wi th the pro fessional and personal

devel opment o f f ollowers (Piccolo and Col quitt , 2006; Antonakis , A volio and Sivasubra maniam, 2003).

Each of the four comp onents (4Is) can be measured by th e multi factor leadership questionnaire ( ML Q) ,

which is considered one of the most validate d and applied measures of leadership (Antonakis et al.,

2003) .

Organiza tio na l C ult ure

For mal writing on cultur e start ed b y P etti grew (1979 ) as "the syste m of such publicly and accepted

meanings operating for a gi ven g roup at a gi ven ti me" (Pet tigr ew, 1979, P 574) . Schein (2009, p. 27)

defines culture as " a pattern of shared tacit assumptions that was learned by a group as it solved its

proble ms o f exte rnal adaptation and internal int egrati on that has wo rk ed w ell enou gh t o be c onsidered

valid, and the re for e t o b e taught to new me mbers as the co rrec t way to perc eive, think and feel in relati on

to those pr oble ms ". Most d efinition s of cultu re agr ee that organizational culture is the set of pr ocesses

binding or gani zational members tog ether based on the shared patte rn of basic values, belie fs and

assumptions in an organization (M gb ere , 2009). Denison's model of ef fec tive cultur e is used in the p resent

study because of its well reco gnized impact on various per for mance indicators (Denison et al., 2006) . The

mod el posits four desirable cultu ral traits ; involvement, consistency, adaptabilit y, and mission.

Involve ment describ es the extent to which the organization empow er s and invest s in its people as well as

being t eam or i ented . Consistency r efl ects the existenc e of co re values and systems that pro vide sourc e of

integr ation, coo rdination and control. Adaptability refe rs to the organization's ability to translate the

demands of the business environ men t into actions, tak e r isks, and continuously learn . Finally, mission

reflec ts the organization's ability to define a meaningful long -t er m direc tion that provid es emplo ye es

with a sense of f ocus and a common vision o f the futu re (Denison e t al, 2006). Invol ve men t and

consistency represent th e internal or ope rational aspects of organizational culture, while mission and

adaptability focus on the ext ernally -dri ven aspects of an o rganization's cultur e ( Block, 2003).

Organiza tio na l C ommit ment

Organizational commit men t reflec ts an employe e's identification with and involve ment in his

organization. This implies acceptance of its goals and values, exertion of extra eff ort on behalf of the

organization, and having strong desir e to re main a me mb er in the organization ( M owday , S te ers , &

Porte r, 1979 ). Allen and Meyer (1990) define or ganizational commit ment as the emplo yees' relationship

with the organization and the decision the empl oye e makes to r emain a me mber in it. Allen and Mey er's

(1990) three co mponent mod el of o rganizat ional comm it ment is the most widely use d model f or the

study of o rganizational commit men t . It has been used to pre dict a wide array of empl oye es work

outco mes such as turnove r, citizenship behavio r, and absente eism ( M ey er e t al., 2002 ). Acco rding t o this

mod el, empl oye es simultaneously expe ri ence thre e t ypes o f o rganizational commit ment ; aff ecti ve,

continuance , and normative . A f fec ti ve co mmit ment re fe rs to the e mploy ee's e motional attachmen t to,

identification with and involvement in his organization based on positiv e w ork experi ence. Continuance

commit ment re fe rs to the e mplo yee's awareness of the c osts , econo mic and social, associated wi th l eaving

his current organization. N or mati ve co mmi tment r efe rs to the e mploy ee's fe eling of o bligation t o re main

with his organiz ation based on his b elief that it is the right and mo ral thing t o do .

Job S at isfact io n

Spector (1997 p. 2) view s jo b satisfaction as a "global feeling ab out th e job or as a related c onstellation of

attitudes ab out various aspects of the job" . T wo appr oac hes are repor ted in the lite ra ture f or measuring

satisfaction: (1) multi faceted c onstruct s that assess satisfaction with specific job ele ments such as pay, co -

worke r, super vision, and job security, and (2) a general state of sati sfaction towards the jo b as a whole

(Ste ger , Dik, and Duffy , 2012) . Scarpello and Campbell (1983) findings suggested that global rating of job Business Management Dyna mics

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satisfaction may be mor e inclusive than multi face ted measures. Additionally, a meta -analysis of the

relationship betw een j ob satisfaction and or ganizational perfor mance f ound the corr elations be twe en

overall jo b satisfactions and individual job perf or mance to be high er and mor e consistent than those

betw een jo b d escriptive index J DI mea sures and per for mance (P et ty, Mc g ee , and Cavender , 1984) .

Wanous , Reichers, and Hud y (1997) rep ort ed a high meta analytic co rrelation bet ween overall measures

of satisfaction and multifaceted measures . Accordingly , it could be conclude d that despite the intuiti ve

appeal of mul tifacet ed measures, b oth me tho ds ar e e qually valid , and while glo bal measures have the

extra bene fit of taking less time and are used when the botto m line attitud e is of interest , the multiface ted

approach allows researchers t o diagnose pro ble m areas bu t they may still miss some imp ortant j ob

aspects (Robbins and Judge , 2013) . The present stu dy f ocuses on the e mplo yee's o verall appraisal of

his /her job satisfaction .

LITERAT URE REVIE W

Tr ansformatio nal L eadership , Jo b S at isfacti on and Organizat ional C ommitment

A considerable amount o f e mpi rical research and a nu mb er of meta -analyses have pro vided e vidence of a

positive relationship b etwe en t ransforma tional leadership and a rang e o f e mploy ee outco me t ested in

diffe rent or ganizational settings (Judge and Piccoli, 2004; Dumdum, Low e and Avolio , 2002; Lowe,

Kro eck, and Sivasubramaniam, 1996; Fuller , Patt erson, H ester and String er, 1996 ). The most studied

perfo rmance indicators w ere job satisfaction, c ommit ment, and leade r e ffec tiveness. Additi onally , a

recent meta -analyses conducted b y Piccoli et al ( 2012 ) compared the relati ve i mpo rtance o f fi ve

leadership styles, namely ; transfor mational, conting ent reward , laissez faire, and initiating structure , and

consideration in explaining job satisfaction and leaders effectiveness. The results showed t hat

consideration and transfor mational leadership styles are the most i mpor tant pre dictors o f tw o e mplo yee

outco mes. Barling, Web er and Kelloway (1996) found that t raining managers on transfor mational

leadership behaviors resulte d in significant increase i n their su bordinates' o rganizational commi tment.

Most o f the af ore menti oned r esearch work was confined to w estern count ries , howe ve r, r ecently

researchers in A rab and Islamic countries reco gnized the importance of transfor mational leade rship ,

because of it s contribu tion to b ett er or ganizational outcomes especially with increasing globalization and

the moral di mension inherent in transfor mational leadership which is similar to the Islamic approach to

leadership (M ohamad, 2012). For exampl e, El kahtany (2010) study was conducted on e mplo ye es fr om

Saudi Arabia , Bushra, Usman and Naveed (2011) used data from e mploy ees workin g in the banking

sector in Pakistan , Mohamad (2012) studied a sample of emplo yees attending MBA pro grams in Egypt ,

and Zahari and Shurbagi (2 012) applied their st udy on e mplo yees of a large pet roleu m co mpany in Libya.

Their results confi rmed that transfor mational leadership is positively r elated to b oth jo b satisfaction and

organizational commit ment . Additionally, Reh man et al (2012) and Ali et al (2011) findings based on data

fro m Pakistan suppor ted a st rong positive impact o f transfo rmati onal leadership on co mmit ment .

Organizati onal Cul ture, Job Satisfac tio n and Or ganizati onal C omm itment

The link of or ganizational culture to per for mance is well documented in the li teratu re ( Fey and D enison,

2003), however , l ittle empi rical research has been done to in vestigat e the co mbined relationship be twe en

organizational culture, job satisfaction and or ganizational commit ment . Lok and Craw ford (2004) fou nd

that innovative and supporti ve cultur es have positive ef fec ts on job satisfaction and organizational

commit ment . Additionally, S empane , Riege r and Roodt (2002) report ed a strong positive relationship

betw een o rganizational culture questionnaire dimensio ns and job satisfaction . Zahari and Shurbagi (2012)

concluded that or ganizational culture (clan, adhocracy , mark et and hierarchy) positively influence job

satisfaction. Also MacIntosh and Doherty (2009) found that o rganizational culture predicts job

satis faction in fitness organizations. Denison and Mishra (1995) found that all Denison's culture

measures pro ved to be strong pr edicto rs of empl oye e satisfaction. A survey conduc ted b y Denison

Consulti ng on 90 organizations reported that or ganizations with st rong culture scores had significant

higher empl oye e engag e ment scores ( Denison Consulting, 2010). Results of two studies conduct ed in

Iran; Mo meni et al (2012 ) and Azadi et al (2013); showed a significant positive relations hip between all

Denison's dimensi ons of organizational culture and the three sub scales of organ izational commitment.

Also a study conducted in Nig eria ( Non go and Ik yanyon, 2012) found that D enison's dimensions of Business Management Dyna mics

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involve men t and adaptability significantly cor rect ed with co mmit ment , while di mensions of c onsistency

and mission did not.

Job Sat isfacti on and Organ izational C ommitmen t

Job satisfaction reflec ts one's affec tive response to one's job or to specific face ts of job ; however,

organizational commi tment r eflec ts a mo re global ori ent ation to wards one's organization as a whole

(Mow day e t al, 1979). While pri or studies gene rally support a p ositive relati onship be twe en job

satisfaction and commit ment , the causal ordering is controversial (Suma and Lesha, 2013) . Chen (2004)

found job sati sfaction as a consequence of o rganiza tional commit ment . Wher eas Kanchana (2012),

Mohamad (2012) , and Rander ee and Chaudhry (2012) concluded that j ob satisfaction positi vely a ffec ts

organizational commit ment . Also Lu mley e t al. (2011 ) findings r eport ed posi tive r elationship be t ween job

satisfaction components o f pay, pr omotion, sup ervision, fring e bene fits, conting ent r ewards, co -wor kers,

nature of wor k, and co mmunication on one hand and affecti ve and nor mati ve co mmit ment on the other

hand , Aydo gdu and Asik g il (2011) f ound a stron g positi ve relationship be tween job satisfaction aspects of

Minnesota questionnaire and affecti ve, nor mati ve , and continuance commit ment. E me ry and Barker

(2007) conducted two studies, one of the m showed a positive relationship betwe en satisfaction and

commit ment , while the o ther found the two unrelated .

Based on the above litera ture review the following hypotheses can b e driven

H1a : Transformati onal leadership positively influ ences jo b satisfaction .

H1b: Transfo r mational leade rshi p positivel y influences organizational commit men t .

H2 a: Organizational culture p ositivel y influences job satisfaction.

H2 b: O rganizational culture positi vely influences o rganizational commit ment .

H3 : Jo b satisfaction positively influ ences or ganizational co mmi tment.

METHODOLOGY

Participan ts and Data C ollect ion

Data used for testing the r esearch hypo thesis was collected via an online sur vey . The participants came

fro m ex ecutives enrolle d in the E MB A pro gra m pro vided by the faculty o f co mme rce, Alexandria

Universit y, as well as faculty members and graduates of the faculty of c ommerce . The call for

participation was sent by e mail and posted on Face B ook gro ups belongin g to the participants who w ere

encouraged t o share the survey link with their co -wo rk ers and contacts. Two reminders wer e posted

resulting in 192 complet ed sur veys . Table 1 shows the p rofile of the participant's characteristics . Most of

the respondents are males (72%), well educat ed; all have university de gr ee, with 30% holding a post

graduate de gre e, 70% of respondents fall betw een 21 to 35 years old , 44% are non -managerial emplo yees,

17% supervisory, 25% middle manage rs, and 14 % top managers, finally, seven industry sectors are

represent ed by the stu dy par ticipants.

Table 1: Prof ile of resp ond ents

Gender Education Level Industr y Sect or

Male 72 .4% Universit y 70 .3% Infor mation T echnolog y 23.4%

Fe male 27.6 % Post Grade 29.7 % Education 16.7%

Age Organizati onal level Energy 15.1%

21 -25 25.0% Non managerial 44.3% Manufacturing 13.5%

26 -30 27.6% First line 16.7% Pharmaceuticals 6.8%

31 -35 17.2% Middle 25.0% Business Services 6.3%

36 -40 15.6% Top 14.1% Financial Services 5.2%

41 -45 10.4% Others 13%

46 and above 4.2%

Measures

Tra nsformational leadership style was assessed using the multifactor leadership questionnaire (M LQ - 6S)

(Bass and Avolio, 1992). Th e scale includ ed f our di mensions , each measured by thre e it ems rated on a 5 Business Management Dyna mics

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point scale ranging from "not at all" to "always". Organizational culture was assessed using 24 items

drawn fro m the Denison organizational culture survey (Denison e t al., 2006). Each of the mo del's four

traits has three indices that are th e mean of two it ems. Or ganizationa l commit ment was measured using

18 questions from Allen a nd Mey er (1990) scale , each of the three typ es of commit ment was measured by

six items. Finally, o verall jo b s atisfaction was measured using three i te ms adapted fr o m Hackman and

Oldham (1974). Cultu re, co mmit ment , and satisfaction were rate d on a 5 point scale ranging from

"st rongly disagree" to "str ongly agre e". The questionnaire was translated into Arabic and was reverse

translated into English. Thre e faculty members wer e aske d t o r evise the translated questionnaire to

ensure clarity of meaning; minor changes w ere mad e t o so m e of the questions.

Table 2: Construc ts Cron bach's Al pha Coeffic ients and Variance E xtracted

Construct Cronbach's Alpha Variance extract ed %

1- Transfor mational leadership (1 2 it e ms) 0.92 56.4

2- Cultur e (24 ite ms) 0.95 61.3

3- Satisfaction (3 it e ms ) 0.83 65.3

4- Co mmit ment ( 12 ite ms) 0.80 69.8

Af fecti ve c ommit ment (6 i te ms) 0.86 58.8

Continuance co mmit ment (4 it ems ) 0.80 62.1

N or mative co mmit ment (2 it ems) 0.66 74.5

The dependenc e on one infor mant may cause common me thod variance, whe re r espondents tend t o rate

all questions in a constant directi on re flectin g a general i mpr ession of the survey ( Kerling er, 1986). To test

for such err or, a Principle Co mponent Analysis PCA was conducted f or th e whole sur vey . The r esults

produced 11 fac tors explaining 66.9% of the variance, wi th no one factor accounting for most o f the

explained variance. All scales empl oyed in this stud y w ere validate d in mo re than one methodol ogical

study and wer e used b y nu mer ous empirical studies. Thus, scales were teste d only for int ernal

consistency reliability and construct validity. Correlat ed ite m to to tal correlation ITT C scores were

examined f or each scale separately, ite ms with ITT C b elow the minimu m accept ed rate of 0.40 were

delet ed (N unnaly, 1978). The r e maining it ems w er e then factor analyzed using principle co mponent

analysis with varimax rotation .

Table 3: Descript ive S tatis tics

Construct Mean S.D. Corr elations

1 2 3 4 5 6 7

1. Transfor mational 3.20 0.87 1.00

2. Cultur e 3.31 0.82 0.58 * 1.00

3. Satisfaction 3.38 0.89 0.57 * 0.62 * 1.00

4. Co mmit ment 3.34 0.73 0.54 * 0.49 * 0.65 * 1.00

5. Af fecti ve 3.43 0.99 0.56* 0.60* 0.66* 0.89* 1.00

6. Continuance 3.36 0.96 0.17* 0.02 0.26* 0.63* 0.25* 1.00

7. Nor mative 3.02 0.97 0.38* 0.31* 0.38* 0.56* 0.44* 0.09 1.00

*Correla tio n is sig nif icant at the 0.01 leve l (1 -tailed ).

Ite ms describing transfor mational leadership were factor ed to test f or its underlying dimensions. All

items load ed under one fact or with total explained variance o f 56.4%. A fte r screening the ITTC scor es of

the or ganizational culture scale; the p rocedu re used by Fe y and D enison (2003) to prepar e the data for the

factor analysis was used. The 24 questions were first reduced into 12 indices, three under each of the four

culture t raits, the 12 indices wer e then fact ored resulting in one factor solution with 61.3% to tal variance

explained. Six ite ms we re d roppe d f ro m the or ganizational commit m en t scale because o f low IT TC; two

items fr om the con tinuance commit men t scale and four items fro m the nor mative scale. The remaining 12

items wer e factorized r esulting in three factor solution corr esponded to af fecti ve co mmi tment,

continuance commit ment, and nor mati ve co mmit ment explaining 69.8% of the variance. The qu estions

under each di mension wer e th en averag ed to constitu te the thr ee indicato rs of c ommit ment. Finally, the Business Management Dyna mics

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three qu estions of o verall satisfaction loaded under one facto r that explained 69.77% of the variance.

Table 2 presents a summary of the r esu lts of the inte rna l consistency reliability , and validity tests. All

construct have shown reliability rang e be twe en 0.83 -0.95; except fo r nor mative c ommit men t; as indicator

of very goo d to excellent reliability (Hair et al, 2007). Additionally, th e variance explained b y the

constructs exce eded the accepted 0.50% cuto ff point. Accor dingly, the ite ms o f the construc ts' scales could

be averag ed to cr eate summate d scales that are used for hypotheses testing. M eans, standard deviations,

and Pearson correlati on fo r the constructs ar e r epor ted in Table 3.

Path A nal ysis and Resu lts

Structural e quation modeling S EM analysis was perfor med using AM OS 18 to t est the research model

hypotheses . Figu r e 1 shows the proposed research model tog ethe r with the results of the analysis. The

mod el incorporated the co variance betwe en the two exog enous (predic tor ) variables; transfor mational

leadership and organizational culture which allows for the esti mation o f dir ect and indirect mediati on

eff ects with those variables . Also co mmi tment is inclu de d in the model as a latent construct with three

indicators ; affec tive, con tinuance, and nor mative co mmit ment .

F igu re 1: Pr oposed Research Mode l

Table 4 pres ents several fit indices that are used to evaluate the mo del (Hoop er, Cou ghlan, and Mullen,

2008). The significant Chi -squar e and the ro ot mean square erro r o f appr oximation R MSEA o f 0.1 are

indicative of p oor model fit; how ever all oth er fi t indices re flect goo d model fit (Table 4) . The

measure ment part of the mod el was then examine d t o id entify the ex tent to which the indicators are

linked to their underl ying factor (co mmit ment ). The paths coefficien ts fro m the latent to its obser ved is

known as the indicators loadings, while SMC represents the amount of variance in the indicator

accounted f or b y the lat ent construc t. As a g eneral rule , loadings below 0.40 is considered weak, also

indicators with SMC l ess than 0.20 have a very high le vel of erro r , and may b e a poor repr esentatives of

their underl ying factor, thus researc he rs are advised to re mo ve such indicators fro m th e model (Ho oper

et al., 2008). Acco rdingly, c ontinuance commit men t was dropped fr om the measure ment model and the

estimates of the adjusted model w ere calculated . As seen in table 4, the Chi -s quare show insignificant

diffe rence bet w een th e model and the data, also the R MSE A is 0.05 which reflects a go od mod el fit , also

all other fit indices o f the adjuste d mod el are be tte r than the propose d mod el

Business Management Dyna mics

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Table 4 Goodness of Fi t Ind ices for the Prop osed and A djus ted Research M odel s

Fit Ind i ces Model Fi t

Guideli nes

Proposed

Model

Adjusted

Model

Chi -square significance P>0.05 P = 0.007 P=0.26

Chi -square/D eg rees of Fre edo m (C MIN /DF ) < 2 - 5 2.9 1.37

Root mean squar e e rror of approxi mation (R MSEA ) < 0.8 0.1 0.05

Root mean squar e r esidual RM R < 0.1 0.03 0.01

Goodness of Fit (G FI) > 0.90 0.97 0.99

Adjusted Goodn ess of Fit (AG FI) > 0. 90 0.90 0.96

Co mparative Fit Index ( CFI) > 0.90 0.97 0.998

Tucker -Lewis co ef ficient (TLI) > 0.90 0.92 0.99

Figure 2 shows the adjusted mod el with standardize d path coefficients; which allow the co mparison

betw een the relati ve influenc es of p redicto rs on outc ome variabl es. The figur e also shows the squared

multiple co rrelation S MC values; similar to R squar e; which repr esent th e to tal variance explained in the

outco me variable by its respecti ve pre dictors. Table 5 summarizes the results of the path analysis and the

squared multipl e correlations of the adjuste d mod el depicte d in figure 2. The path coefficient for the

eff ect of transfo rmati onal leadership to satis faction is 0.3 5 which indicates a considerable positive

influence of leadership on satisfaction. The path coefficie nt fr om cultu re to satisfaction is 0.42 , which

shows that culture has a stronger impact on satisfaction than leadership. Organizational cultu re and

transforma tional leadership tog ether explain 45% of the variance in jo b satisfaction. Those results lend

support t o hypo theses H1a and H2a.

Fi gure 2: Adjus ted Research Model

As for organizational commit ment , job satisfaction came as the strong est det er minant with a significant

path coefficient o f 0.47, and culture emer ged as the second predict or with a significant coefficient o f 0.27,

while transfor mational leadership came last with a significant path co ef ficient o f 0.22. The e mploy ee job

satis faction, strength o f the o rganizational culture, and perc eptions of transfor mational leadership

explained 69% of the variance in organizational commit ment . Those results pro vide suppor t to

hypotheses H1b , H2b, and H3.

Business Management Dyna mics

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©Society for Business and Management Dynamics

Table 5 Results of Path Analys is

Hy pothesis Path Standardized

Path

Coe fficient

R square

SMC Fro m To

H1a Transformational lead ership Satisfaction 0.3 4** 0.45

H2a Culture Satisfaction 0.42**

H1b Transformational lead ership Co mmi tment 0.22**

H2b Culture Co mmi tment 0.2 7** 0.6 9

H3 Sat isfaction Co mmi tment 0.47**

** p < .01

DISCU SSION AND CON CLU SIONS

This study has examined the impact of transfor mational leadership and or ganizational culture on two

key attitudinal ou tco mes; empl oye e j ob satisfaction and o rganizational commit ment . It also investi gated

the long acknowle dged i mpact o f e mplo yee job satisfaction on or ganizational commit ment . The findings

provid e d e vidence on the signi ficant influence o f a stron g or ganizational culture and transfor mational

leadership practices on employe es' satisfaction and organizational commit ment , with culture showing

higher i mpact than leade rship on b oth w ork attitud es. Also the study r esults confir med the imp ortance of

job s atisfaction as a pr edicto r o f e mplo ye es' commit ment to their organization . Based on the results of this

study, l eaders need t o reco gnize that the shared values and norms which constitute the organization

culture is an impor tant driver o f jo b satisfaction and organizational commi tment. Schien (2009) argues

that if managers ar e not mana ging cultur e, then cultur e is managing the m. This highlights th e i mpor tance

of coaching leade rs in creating or ganization settings that encou rages highe r le vels o f en gage ment and

identification with the organization. D enison's measure of organizational cult ure can be use d as

diagnostic tools that can help managers identif y the st rengths and weaknesses in their cultur e . The

analysis of the four cultur e traits and their sub dimensions can direct managers towards appropriate

actions needed to c reate , d evelop, and change cultur e. Such actions may include the d evelopment,

clarification, and communication of a unifying vision; empo wering and training empl oye es to be beco me

mor e change oriented and customer f ocused; re warding knowled ge sharing and penalizing behav iors

that are inconsistent with agreed upon values. This analysis can be carried on both the or ganizational

unit and the o ve rall organizational culture l evel .

The present stud y also showed that t ransformati onal leadership is received positivel y b y Eg ypt ian

emplo ye es as reflected in higher levels of satisfactions and commit men t. Accordin g to "The Hofst ede

Cente r", Egyp t is characterize d b y high powe r distance and high uncertaint y avoidance wher e lead ers are

expected t o act strongly impl ying that the most id eal leader could be the ben evol ent autocrat.

Accordingly , the mor e engaging transfor mational leadership style may not b e favored in such a country.

However, the p resent stu dy r esults and those o f Mohamad (2012) impl y that E gyp tian emplo ye es

respond posit ively to transfor mational leade rs by de veloping stron g attit udes t owards thei r jo bs and their

organization. Similar results we re r epor ted in o ther non west ern cultur es such as Saudi Arabia, Lybia,

and Pakistan (ElKahtany, 2010; Zahari and Shurbagi, 2012; Bushra et al. , 2011; Rehman e t al., 2011).

The findings of this study also have i mplications f or the recru itin g and t raining of managers; especially

that training was f ound t o influenc e th e e ff ectiveness of leadership (Barling et al. , 1996). F or example

intervie wing practices should include questions that reflect job candidates' transformational experience,

rather than merel y tapping on the a bility o f the manager to just oversee the jo b of the subo rdinate.

Organizations need t o selec t and hire managers wh o are a ble t o coach wo rke rs and motivat e th em to

achieve outstanding per for mance. The ML Q questi onnaire can be used as a screening tool to identif y the

leadership style o f jo b candidates and emplo ye es. Training pro grams can be d eveloped to include

interacti ve and situational exe rcises rele vant to the 4Is of the transfor mational leadership. It should be

noted though that training inter ventions need to f ocus on building transformational leadership skills that

leads to followe rs' empo wer men t more than follow ers ' depend ence on the leade r fo r inspiration and

guidance ( Kark, Shamira, and Chen, 2003). Business Management Dyna mics

Vol.3 , No. 5, Nov 2013 , p p.15-26

©Society for Business and Management Dynamics

Researchers in Arab countries are called upon to give mor e attention t o the validation and maybe

adjustment of wid ely adopt ed r esearch instruments such as the ones used in this study (e .g ., Shahin and

Wright, 2004 ; conducted in Egypt; and Alsayed, Mo taghi, and Osman, 2012 ; conducted in Palestine ). This

eff ort will facilitate cross cultural co mparisons and will contribute to the building of a consistent bod y of

knowl edg e. Also, futur e studies can replicate this study within specific ind ustries, as well as across

cultures. It could be int eresting to extend the pr esent stud y model to include e mploy ees and

organ izational perfor mance as the final outco mes and to examine th e mediating/ mod erating role of

satisfaction and commitment . This study was concerned with perc eptions of or ganizational culture,

futur e studies can look int o the d epart mental subcultu res that may have a mor e pro found ef fect on

emplo ye es' attitudes. Addit ionally, st udying the pe rceptions o f transfor mational leade rship of the

organizations CEO ; rath er than the i mmediate le ader as in the pr esent stud y ; may shed mor e light on

how leadership shapes followers satisfaction and commit ment. Futur e studies need to consider the

mechanisms through which leadership behavi or and culture influ ence the empl oye es' attitudes , for

example jo b characteristics, personal identification with the leader vs. g roup identi fication . The weak

contribution of c ontinuance commit men t to the overall co mmi tment struc ture is worth y o f fu rther

inves tigations. According t o Jaros (2007), the structure of the continuance scale fails to reflect the affecti ve

aspect of or ganizational commit men t, thus he r eco mmended adding a ffec tive c ontent to th e continuance

scale in order to incr ease its cor respondence to the construct i t claims to measure .

Finally, a limitation of this study is its use of a convenient cross sectional sample . H owe ver , on the

positive side, the use o f the we b as a method of data collec tion pro vide d highe r levels of anony mity that

may have encourag ed mo re honest opinions as well as the inclusion of a mor e di versifi ed set of

participants. Thus the results of this study can be gene ralized to the ex tent that the par ticipants profile i s

representa tive of the E gyp tian work c ommunit y. T o conclude , this study con fir med the i mpor tance of

transforma tional leadership and ef fecti ve cul ture in enhancing emplo yees' satisfaction and co mmi tment.

It als o showe d that e mploy ees' jo b satisfaction is an i mport ant predic tor of their or ganizational

commit ment . The study deploy ment of validate d measures allow s the integration of its findings with in

the existing bod y o f lit eratur e and fills an existing gap re garding an i mpor tant Arab countr y; Egyp t.

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