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Verification of the Mediating Effects of Trust and Value Congruence on the Relationship between Subordinate-Perceived Supervisor's Transformational and Transactional Leadership and Performance

Lee, Jingyu · Park, Jihwan

Published: January 2003 · Vol. 32, No. 4 · pp. 925-954
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Abstract

This study examined how subordinates' perceived transformational leadership and transactional leadership of their supervisors influence performance outcomes (subordinate satisfaction with the leader, subordinate-rated leader effectiveness, and subordinate extra effort). In particular, the study investigated whether trust between supervisors and subordinates and value congruence serve as mediating variables in this process. To test this, a structural model was developed linking leadership (transformational leadership, transactional leadership) → trust, value congruence → performance outcomes (subordinate satisfaction with the leader, subordinate-rated leader effectiveness, subordinate extra effort). The results of the structural model verification revealed that subordinates' perceived transformational leadership of their supervisors had not only a direct effect on performance but also an indirect effect mediated through subordinates' trust in the leader and leader-subordinate value congruence. In contrast, transactional leadership did not exert a direct effect on performance, but indirect effects through trust and value congruence were observed. The results of this study confirmed that trust and value congruence play important mediating roles in the relationship between subordinates' perceived transformational and transactional leadership of their supervisors and performance outcomes. Finally, theoretical and practical implications, limitations, and directions for future research were presented.
Keywords: satisfaction with leadersubordinate-rated leader effectivenesssubordinates` extra effortthe mediating role of trust and value congruencetransformational and transactional leadership