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An empirical study of transformational leadership, team performance and service quality in retail banks

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  • Lee, Peter K.C.
  • Cheng, T.C. Edwin
  • Yeung, Andy C.L.
  • Lai, Kee-hung

Abstract

The discipline of operations management (OM) has long been offering differing quantitative techniques for improving the efficiency of banking operations. However, there has been a trend in recent years that operations and services of the banking industry are becoming more diverse and unstructured, rendering many traditional OM quantitative techniques less effective in performance improvement. By integrating the literature on banking operations, service quality, leadership style and work teams, we argue that leadership style and team performance are crucial concerns determining the service quality performance of today's banking operations in a team setting. Using data collected from 192 employees from 32 operational teams (a leader and five members in each team) in 15 retail banks in Macau, China, we investigated whether the five dimensions of transformational leadership have an impact on team performance with respect to team cohesion, team leader job satisfaction and team competence; and whether the dimensions of team performance have an impact on such service quality dimensions as reliability and responsiveness. We found that one of the dimensions of transformational leadership and two of the dimensions of team performance have a significant impact on service quality. We discuss the implications of the findings for research and practise.

Suggested Citation

  • Lee, Peter K.C. & Cheng, T.C. Edwin & Yeung, Andy C.L. & Lai, Kee-hung, 2011. "An empirical study of transformational leadership, team performance and service quality in retail banks," Omega, Elsevier, vol. 39(6), pages 690-701, December.
    • Handle: RePEc:eee:jomega:v:39:y:2011:i:6:p:690-701
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    4. Paulo M.M. Rodrigues & Fernando A. F. Ferreira, 2011. "Evaluating retail banking quality service and convenience with MCDA techniques: a case study at the bank branch level," Working Papers w201131, Banco de Portugal, Economics and Research Department.
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    6. Fernando A. F. Ferreira & Sérgio P. Santos & Paulo M. M. Rodrigues & Ronald W. Spahr, 2014. "Evaluating retail banking service quality and convenience with MCDA techniques: a case study at the bank branch level," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 15(1), pages 1-21, February.
    7. Mokhtar, Ahmad Rais Mohamad & Genovese, Andrea & Brint, Andrew & Kumar, Niraj, 2019. "Supply chain leadership: A systematic literature review and a research agenda," International Journal of Production Economics, Elsevier, vol. 216(C), pages 255-273.
    8. Marjan S. Jalali & Fernando A. F. Ferreira & João J. M. Ferreira & Ieva Meidutė-Kavaliauskienė, 2016. "Integrating Metacognitive and Psychometric Decision-Making Approaches for Bank Customer Loyalty Measurement," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 815-837, July.
    9. Daniel RUSU, 2021. "STRATEGIES, ORGANIZATIONAL COMMITMENT AND LEADERSHIP STYLES IN SMEs," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 11(4), pages 31-49, December.
    10. Lee, Peter K.C. & To, W.M. & Yu, Billy T.W., 2013. "Team attributes and performance of operational service teams: An empirical taxonomy development," International Journal of Production Economics, Elsevier, vol. 142(1), pages 51-60.
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