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First published December 1999

Fairness Perceptions and Trust as Mediators for Transformational and Transactional Leadership: A Two-Sample Study

Abstract

This research presents a comprehensive model of relationships between transformational and transactional leadership, procedural and distributive justice, trust, job satisfaction, organizational commitment, and organizational citizenship behaviors (OCBs). Structural equation modeling was used to test a theoretical model with two independent samples that were comprised of 192 and 155 matched leaders and subordinates. Several rival models were also tested. Finally, “stacked” modeling techniques showed that the parameter estimates developed from the two samples were invariant except for one additional relationship, which was significant in the second sample only. The results supported the indirect effect of transformational leadership on OCBs through procedural justice and trust. Implications and directions for future research are discussed.

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1. In order to establish the theoretical distinctiveness of transactional and transformational leadership, a construct assessment panel was employed. Sixty-three working MBA students rated 58 MLQ items on content rating forms using the procedure presented in Schriesheim, Powers, Scandura, Gardiner, and Lankau (1993) (These subjects were independent from samples one and two mentioned above). The subjects were provided with definitions of transactional and transformational leadership and then instructed to rate the 58 items as being “transformational,” “transactional” and “neither” using a 1-to-5 Likert type scale. The order of items was identical to the order in the MLQ (to preserve the item “set”).
Item means and factor analytic (exploratory and confirmatory) results, which are not detailed here because of space constraints, clearly supported the content adequacy of the MLQ as an operationalization of the relatively broad theoretical constructs of transformational and transactional leadership. Both the exploratory and confirmatory factor analyses yielded a two-factor structure with the transactional and transformational items clearly loading on separate factors. Thus, construct redundancy or a lack of theoretical distinctiveness between these two constructs and the operationalizations which we used to measure them does not appear to be a particularly plausible explanation for the high correlations we obtained (and that are often found between transformational and transactional leadership). This suggests that statistical methods which control for the interrelationship between transformational and transactional leadership may be legitimately employed in research that uses these two dimensions (McNemar, 1969). Complete details on this procedure, the obtained item means and factor analytic results are available from the first author.
2. We should mention that the nonstructural correlations that were estimated in this model (MU) were as follows. In sample one, .80 for transformational and transactional leadership, .35 for distributive and procedural justice, and .17 for organizational commitment and job satisfaction (the within-sample standardized coefficients were .86, .30, and .18, respectively). In sample two, the unstandardized estimates were .53, .15, and .40, while the standardized coefficients were .81, .22, and .56, respectively (all are significant at p < .01).
3. Model MU2 obtained identical estimates for the nonstructural correlations as those obtained for model MU.
4. The nonstructural correlations estimated in model MU3 were the same as those of models MU and MU2, except that (a) the sample one correlation between organizational commitment and job satisfaction was estimated at .16 (.17 standardized), (b) the sample two transformational-transactional leadership correlation was .54 (.82 standardized), and (c) the sample two organizational commitment-job satisfaction correlation was .39 (.54 standardized).

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Rajnandini Pillai
California State University San Marcos
Chester A. Schriesheim
Eric S. Williams

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