Transformational Leadership as a Success Factor in a Merger
By
Dr. Richard K. Money, Jr.
ABSTRACT
Although the role of transformational leadership in organizational change has been generally documented, there has been a lack of knowledge regarding the specific effects of transformational leadership on the postmerger success of competitor firms. The purpose of this study was fourfold: to measure the extent of influence transformational leadership has on postmerger success; measure the level of transformational leadership that exists for a successful merger; determine whether similarities in leadership traits exist between groups that merged successfully; and what differences in leadership traits might exist between those who participate in a successful merger versus those same participants who experienced an unsuccessful merger. A quantitative, exploratory case study design was used to explore these four research questions. The research design relies on data from the Multifactor Leadership Questionnaire (MLQ) as well as additional demographic questions which asked the respondents which pre-merger firm they represent, the tenure with that firm, job classification (i.e., manager/non-manager), and unsuccessful merger experience. The results of this study, in this researcher’s opinion provides organizational leaders with guidance on improving the likelihood of postmerger success, increases in shareholder wealth, employee extra effort, effectiveness, and job satisfaction.
By
Dr. Richard K. Money, Jr.
ABSTRACT
Although the role of transformational leadership in organizational change has been generally documented, there has been a lack of knowledge regarding the specific effects of transformational leadership on the postmerger success of competitor firms. The purpose of this study was fourfold: to measure the extent of influence transformational leadership has on postmerger success; measure the level of transformational leadership that exists for a successful merger; determine whether similarities in leadership traits exist between groups that merged successfully; and what differences in leadership traits might exist between those who participate in a successful merger versus those same participants who experienced an unsuccessful merger. A quantitative, exploratory case study design was used to explore these four research questions. The research design relies on data from the Multifactor Leadership Questionnaire (MLQ) as well as additional demographic questions which asked the respondents which pre-merger firm they represent, the tenure with that firm, job classification (i.e., manager/non-manager), and unsuccessful merger experience. The results of this study, in this researcher’s opinion provides organizational leaders with guidance on improving the likelihood of postmerger success, increases in shareholder wealth, employee extra effort, effectiveness, and job satisfaction.