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


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


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.

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  • 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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    Cited by:

    1. Fernando A. F. Ferreira & Sérgio P. Santos & Paulo M.M. Rodrigues & Ronald W. Spahr, 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.
    2. Fernando A. F. Ferreira & Marjan S. Jalali & João J. M. Ferreira & Jelena Stankevičienė & Carla S. E. Marques, 2016. "Understanding the dynamics behind bank branch service quality in Portugal: pursuing a holistic view using fuzzy cognitive mapping," Service Business, Springer;Pan-Pacific Business Association, vol. 10(3), pages 469-487, September.
    3. 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.
    4. 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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