Research Article
A Study on the Relationship among Manager's Transformational Leadership, Fairness of Performance Measurement Systems, Interactive Use, and Managerial Performance
Dankook University
Published: January 2018 · Vol. 47 No. 5 · pp. 1139-1173
DOI: https://doi.org/10.17287/kmr.2018.47.5.1139
Full Text
Abstract
This study sought to examine the relationships among transformational leadership of managers, fairness and interactive use of performance measurement systems (PMS), and organizational performance (financial/non-financial performance). To achieve the research objectives, data on transformational leadership, PMS fairness, interactive use of PMS, and non-financial performance (process/learning and growth/customer) were collected through a survey. Financial performance (ROA, EVA) was then extracted from the Data-guide database for the firms that responded to the survey. Path analysis was conducted to test the hypotheses, and the results are as follows. First, transformational leadership of managers did not have a significant positive effect on organizational performance (financial/non-financial performance), and no direct path effects were found. Second, PMS fairness and interactive use of PMS were found to play mediating roles in the relationship between transformational leadership and financial/non-financial performance. Given that the indirect effects of PMS (fairness, interactive use) were significant in the linking paths between transformational leadership and financial/non-financial performance, it was confirmed that PMS plays a full mediating role. This study suggests that achieving harmony among transformational leadership of managers, PMS fairness, and interactive use of PMS can serve as another means of increasing the probability of success for sustainable growth.
