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Examining the Impact of Transformational Leadership on the Strategic Decisions Effectiveness of Jordanian Microfinance Companies

Author

Listed:
  • Ahmad Nasser Abuzaid

    (Department of Business Administration, Mutah University, Jordan,)

  • Noor Al-Ma’aitah

    (Department of Business Administration, Mutah University, Jordan,)

  • Yazan Emnawer Al-Haraisa

    (Department of Business Administration, Tafila Technical University, Jordan.)

  • Khalaf Ibrahim Al-Tarawneh

    (Department of Business Administration, Mutah University, Jordan,)

Abstract

This study aims to investigate the effect of transformational leadership on strategic decisions effectiveness. A survey method was employed for the collection of data from Microfinance companies of Jordan. The data were analyzed using Multiple Regression technique to empirically test the study hypothesis. The results demonstrate that transformational leadership positively affects strategic decisions effectiveness. Organizations should invest more to build transformational leadership capability for their managers, and provide them with adequate training programs in different aspects of transformational leadership. In addition, if these organizations are aiming to enhance strategic decisions effectiveness, they should focus on attracting and hiring managers that have a transformational leadership attributes. Moreover, they should also take into consideration the other factors like the ability to create managerial acceptance to decisions, generate new ideas, and provide innovative alternatives and choices for the enhancement of strategic decisions effectiveness. However, the current study, compared to the existing literature, contributes to the impact of transformational leadership on strategic decisions effectiveness, especially in Jordan’s business settings.

Suggested Citation

  • Ahmad Nasser Abuzaid & Noor Al-Ma’aitah & Yazan Emnawer Al-Haraisa & Khalaf Ibrahim Al-Tarawneh, 2019. "Examining the Impact of Transformational Leadership on the Strategic Decisions Effectiveness of Jordanian Microfinance Companies," International Review of Management and Marketing, Econjournals, vol. 9(2), pages 76-83.
    • Handle: RePEc:eco:journ3:2019-02-12
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    References listed on IDEAS

    as
    1. Jeevan Jyoti & Sonia Bhau, 2015. "Impact of Transformational Leadership on Job Performance," SAGE Open, , vol. 5(4), pages 21582440156, November.
    2. Weiping Jiang & Xianbo Zhao & Jiongbin Ni, 2017. "The Impact of Transformational Leadership on Employee Sustainable Performance: The Mediating Role of Organizational Citizenship Behavior," Sustainability, MDPI, vol. 9(9), pages 1-17, September.
    3. Imran Shafique & Masood Nawaz Kalyar, 2018. "Linking Transformational Leadership, Absorptive Capacity, and Corporate Entrepreneurship," Administrative Sciences, MDPI, vol. 8(2), pages 1-17, March.
    4. Craig W. Fisher & InduShobha Chengalur-Smith & Donald P. Ballou, 2003. "The Impact of Experience and Time on the Use of Data Quality Information in Decision Making," Information Systems Research, INFORMS, vol. 14(2), pages 170-188, June.
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    6. Gregory W. Allen & Prince A. Attoh & Tao Gong, 2017. "Transformational leadership and affective organizational commitment: mediating roles of perceived social responsibility and organizational identification," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 13(3), pages 585-600, August.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Transformational Leadership; Strategic Decisions Effectiveness; Microfinance Companies.;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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