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Effects of collaborative leadership on organizational performance

Article · January 2019

DOI: 10.22271/ijmrd.2019.v6.i1.25

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International Journal of Multidisciplinary Research and Development

International Journal of Multidisciplinary Research and Development

Online ISSN: 2349-4182, Print ISSN: 2349-5979; Impact Factor: RJIF 5.72
Received: 17-11-2018; Accepted: 19-12-2018
www.allsubjectjournal.com
DOI: https://doi.org/10.22271/ijmrd.2019.v6.i1.25
Volume 6; Issue 1; January 2019; Page No. 138-144

Effects of collaborative leadership on organizational performance

Georges Y Maalouf
Arts, Sciences and Technology University in Lebanon, Lebanon

Abstract
Many businesses fail to secure a sustainable competitive advantage in a fast-changing global world, and now leaders are
challenged by a constant urge to keep high business performance. This failure may sometimes be the consequence of lower level
and quality of knowledge spread in the entire enterprise, and mostly at managerial levels that can reduce business success. Based
on earlier studies in a relevant field, it has been shown that leadership style has a positive influence on the success of an
organization. Currently, no previous researches have studied the effect of collaborative leadership on performance. This article
will seek to fulfill this gap by theoretically and empirically investigating this link, presenting a detailed literature review, and
robust statistical investigation based on a structured questionnaire finished by 262 managers to get findings.
This study affirmed that there is a positive relationship between collaborative leadership and performance, and leaders are forced
to adopt a collaborative leadership style to enhance organizational performance.

Keywords: organizational leadership, collaborative leadership, organizational performance

1. Introduction 1.2 Purpose of the study

It is essential for leaders to be near areas where employees This article will demonstrate if leaders can improve
are located during their work days to ensure a positive organizational performance by adopting the latest trends and
working environment. improvements in leadership, and principally the collaborative
There is a demand for improving engagement, and building leadership style.
relations with various stakeholders. It is the principal The researcher will introduce leadership, organizational
intention behind “Collaborative Leadership”. performance, and perform comprehensive analysis utilizing
Collaborative leadership is a crucial source of competitive questionnaire and advanced statistical methods to contribute
advantage, but rare are those leaders who were trained to to the knowledge in management by valid and reliable results
work collaboratively, mainly those at middle and top in a fast-changing global world.
managerial posts (DeWitt, 2016) [11].
This leadership Style also consists of strengthening corporate 1.3 Statement of the Research Question
management style, understanding self-efficacy while The research question of this article is: “What is the impact
improving learning processes. of collaborative leaders on organizational performance?”

Whatever one’s style, every leader, to be effective, must have 2. Literature review
and work on improving his or her moral purpose. - Michael 2.1 Leadership
Fullan 2.1.1 Leadership Nowadays
Nowadays, businesses are decreasing the size of their
Leadership is the growth for others and us, and it is a process hierarchies and redesigning their structures. Based on
of constant learning, and improving the stakeholders’ growth, observation of leaders in administrative posts and other
and relationships. higher-level functions, researchers discovered that
(DeWitt, 2016) [11] recognizes that collaborative leadership borderless, networked organizations need new manners of
framework comprises: those who collaborate, negotiate, and management with increased connectivity, or what is named
regulate. “meta-leadership”. Meta-leaders aim to accomplish
outcomes that cannot be realized by one company or one
1.1 The need for the Study function. Individuals working in diverse positions in the
Previous researches have recommended this study, including hierarchy need collaboration (Marcus, Dorn, Ashkenazi,
(Jameson, 2007) [18], (Marks and Printy, 2003) [27], (Lira, Henderson, & McNulty, 2009) [26].
2016) [24]. Also, leaders must be prepared and enthusiastic. Carucci
This article may encourage leadership scholars and (2015) [8] examined thousands of leaders who were promoted
practitioners to recognize and realize how collaborative into leading positions to detect the most significant mistakes
leadership may influence the performance of a business. It is of leaders in such situations. The study found that credibility
essential due to growing challenges in the entire world. is not gained through perfection, as leaders gain credibility
There is no previous research undertaking this topic of the when they honestly share that the positions and jobs inside
impact of collaborative leadership on organizational the organization are not proportional and are reflected in the
performance. bonuses, allocation of resources, and chances of promotion.

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International Journal of Multidisciplinary Research and Development

Team members want leaders who listen and resolve problems communicating their decisions to their followers.
and share their work-related concerns. Leaders should be According to Lewin (1930), there are three types of
accessible - but not 24/7; balance should be established leaders based on behavioral aspects: autocratic,
(Carucci, 2015) [8]. democratic, and laissez-faire. Autocratic leaders make
Looking to modern leaders for guidance, (Budak, 2016) [6] decisions alone and are most effective in cases when
examined the qualities of Canadian Prime Minister Justin quick decisions are needed and when a team can perform
Trudeau to reach the most crucial components of effective its tasks with no discussions. Democratic leaders involve
leadership. The main findings are that competent leadership the team members in the decision-making process; this
is a result of the following four elements: high levels of increases followers’ commitment and involvement.
emotional intelligence, diversity, humility, and positivity. Democratic type of leader can be ineffective when facing
According to (Goman, 2015) [16], nowadays, companies are a huge number of possibilities and ideas. The laissez-faire
operating in a world full of change, and leaders must benefit leader puts the decision-making process in the hand of
more than earlier from intelligence and creativity of their their team members with no intervention. This style is
workers. Collaboration is becoming a requirement to deliver applicable when there are very qualified team members
business survival and development. who are motivated and able to work with no direct
Another study looked at another personal habit - sleep - and guidance. This type becomes ineffective because the
its effect on leadership. (Van Dam and van der Helm, 2016) leader is lazy or incapable of focusing on tasks, which is
[31]\
state that the lack of sleep will negatively influence the very dangerous for the whole organization.
behaviors of leaders, while adequate control of sleep will lead 3. Contingency Leadership Theory: The contingency theory
to an advance of the efficiency and effectiveness of the entire states that the effectiveness of leaders cannot be
organization as well as improved creativity, and decision- determined through a given theory or style because needs
making. differ for each situation and require a specific response,
Leadership styles include “quiet leaders” who move decision, or action from the leader.
patiently, cautiously, and incrementally and do the right thing 4. Power-Influence Leadership Theory: Power and
for their businesses, people around them, and themselves. influence theory searches for the source of power and the
Quiet leaders see the world as it is, in order to prevent any leader’s influence. The most popular is French and
surprises from diverse situations. They move patiently, with Raven's Five Forms of Power, which divides power into
contingency plans, and are ready in both positive and two categories: positional and personal.
negative situations and their actions are quick and wise. They
consider the importance of trust and understand that breaking According to this theory, a leader’s positional power can be
this trust can occur quickly. (Badaracco, 2002) [3]. legal, remuneration, or forcible, and personal power can be
Leadership is even related to exercising and having power on experience-based or exhortation. According to this theory,
followers, and this will directly link leadership to the two personal power is more effective, and leaders focus mainly
styles of “Command-and-Control” or “Charismatic”. on their experiences and expertise to influence the
Nowadays, leadership requires cooperation, paying attention, effectiveness of the organization. The Mind Tools article
influencing, and being adaptive, and all these characteristics implies the transformational leadership style is the most
comprise the collaborative leadership (De Meyer, 2009) [10]. effective, but leaders still must study all leadership styles to
This change is the result of many elements including be aware of their characteristics and adopt the style to fit the
globalization, divisions of the value chain, abundance of situation best.
knowledge workers, increasing demands and challenges in
the society, spreading of the sources of information and 2.1.3 Leadership traits and behaviors
innovation, changes in organizational structures of The earliest studies of leadership focused on the traits of a
multinationals, increased importance of risk management, in leader; the most important traits are: honesty, inspiration,
addition to advancements of information and communication self-confidence, and adaptability (Ancona, 2005) [2], But as
technologies. these traits do not always predict effectiveness, researchers
shifted to study the style and the behaviors of leaders in order
2.1.2 Leadership Theories to determine which are useful and which are not.
(MindTools, 2015) [28] presented some important leadership A study at MIT Sloan, the faculty of Business at MIT, proved
theories that shaped the world of leadership, including the tha leaders should be involved in change processes and
trait leadership theory, the behavioral leadership theory, the should develop a working environment that stimulates and
contingency leadership theory, and the power influence motivates people to make needed changes. Finally, leadership
theory, as described in the next sections. is a continuous process, and it grows with practice, dealing
1. Trait Leadership Theory: The trait theory states that with diverse situations, seeking feedback, and continual
effective leaders are born with natural characteristics that advancements.
cannot be learned or gained throughout life. These traits (Weick, 1995) [32] Found four key complementary
determine the characteristics of leaders regarding competencies for leaders: sense-making, relating, visioning,
honesty, understanding of the feelings of others, and inventing. Sense-making is creating a sense in the
persistence, good decisions, and acceptance from environment and the places where of living and work.
followers. Interactions with followers push the leader to Relating is the capacity and skills in building, developing,
work harder to influence the team to work together strengthening, and maintaining healthy relationships.
towards achieving the organizational goals. Relating is encouraging others to do a task while being open
2. Behavioral Leadership Theory: The behavioral leadership to all kinds of new ideas and concerns. Relating is also the
theory states that the effectiveness of leaders is related to ability and capacity to work with others and develop change
how they behave and the manners they adopt in for the sake of the whole group. Visioning is about

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International Journal of Multidisciplinary Research and Development

developing a convincing vision for the future and command-and-control by trust and active presence. In this
understanding the importance of tasks and activities to environment, the followers are encouraged to see themselves
achieve the primary goal in a given time frame. Inventing is as individuals of value, seeking additional knowledge, and
about developing the processes and steps required to achieve increasing their network, while being more creative in
this vision, which is achievable in many different ways, like proposing creative ideas, and contributing in the success of
the advancement of how people work together, timing, the business.
location, methods, and interpersonal relationships. These (Ullah, 2011) stated that many factors have resulted into
four capabilities are complementary and need to be managed growing need of collaboratively leading, and these factors
well by leaders; leadership is the sum of individual and contain and are not limited to the following changes:
collective capacity (Weick, 1995) [32]. globalization, increasing reliance on technology, in addition
(Goleman, 2000) [15] Conducted a quantitative study with to the fierce competition.
3000 executives to learn which leadership behaviors are Merrill Lynch introduced many cultures of collaboration that
responsible for achieving positive results. The questions were less hierarchically-based, and despite all the challenges,
cover six leadership styles: coercive, authoritative, affiliative, efforts, time, and risk of implementing collaboration, but the
democratic, pacesetting, and coaching. senior employees of the bank acknowledge it as highly
The findings were that effective leaders need to adopt a beneficial.
combination of different leadership styles at the same time, Leadership consists of structured methods, and not magic as
which is hard to implement, but it increases the effectiveness it focuses on a vision that aims to achieve results. It consists
and performance of the corporation. Coercive leadership of autonomy with clear directions and goals.
requires forced and compelling following by orders. An
authoritative leader drives the followers to pursue and adopt 2.2 Organizational Performance
a given vision. Affiliative leadership motivates and inspires 2.2.1 Explaining Organizational Performance
followers by focusing on emotions and the harmony between According to (Feser, Mayol, and Sirinivasa, 2015) [13], for
the team members. Democratic leadership focuses on joining performance, leadership is a necessity, like oxygen for
people together to achieve goals and increasing their level of breathing. Leadership is a primary driver for the growth of
openness and communication to match the requirements of organizations. A leader must inspire the followers. Leaders
the tasks in question. Pacesetting leadership aims to excel in must know and acknowledge individuals’ way of thinking
the entire set of tasks and is directed by the internal and give trust, interest, and knowledge about what they need
knowledge and sense of the leaders. Coaching leadership and desire. Leaders will be a source of organizational
helps followers to acquire the needed skills and experiences efficiency, establishing a positive environment and limiting
to be able to survive and succeed in the future. conflicts
The definition of performance is usually related to the
2.1.4 Leadership Styles outcomes of the company, its profitability, as well as the
The implications of (Goldman, 2000) study are the necessity extent to which it attains the goals, succeeds in the strategic
to increase the awareness about the different leadership and operational objectives, benefits the shareholders,
styles, develop better training, and ensure that the correct supports the environment and the society and maintains a
combination may be adopted to bring positive business healthy and prosperous track of responsible business
results. management practices (Kaplan, and Norton, 1992) [19].
Leadership styles are different globally. Asian and American Many internal and external factors affect organizational
leadership styles are slightly different. performance The American Management Association
American leadership styles are usually: directive, offered a guideline “How to Build a High-Performance
participative, empowering, charismatic, and celebrity types Organization” (AMA, 2007) [1]. The main findings were that
(Mills, 2015) [28]. Mills implies that leaders should adopt the higher organizational performance is the outcome of
right, diverse leadership style, respect the differences retaining the right people with appropriate qualifications,
between regions, and capitalize on the development of expertise, and methods of thinking in addition to the
leaders to achieve greater effectiveness. Leaders must adopt continuous development and training of these workers.
new leadership styles in order to survive the turbulent global Performance is sometimes related to a need to confront global
business environment and position their businesses in the best competition, to improve customers’ focus, or to respond to
situation (Lee, 2015) [23]. changes in the marketplace.
It is profoundly related to understanding and applying
2.1.5 Collaborative Leadership technology. The AMA suggests adopting an appropriate
Collaborative leadership entails getting the right mentality, performance appraisal system to gain competitive advantages
reducing operation charges, viewing beyond the boundaries in the fast-changing global world (AMA, 2007) [1].
of the company, developing harmony, and maintaining the
capability to connect smoothly with others, and in managing 2.2.2 Performance Measurements
contradictions. According to (Kaplan, and Norton, 1992) [19], businesses are
(Goman, 2015) [16] found that many bad organizational urged to adopt the latest performance measurements,
behaviors damage this new collaborative leadership style, practices and tools to succeed, be more effective in the long
and they are the abundance of silos in the workplace and the run, survive, develop, compete and attain their goals.
waste of collective capacities. These behaviors will Furthermore, when it comes to performance, several metrics
negatively impact profitability, reduce the motivation of are available, and the requirements should be intensely tested
people, decrease creativity, and make the workforce less before choosing a metric.
productive, and less joyful. Executives and managers are the first who should assess
Collaborative leadership style was able to replace the performance because they are responsible for making the

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International Journal of Multidisciplinary Research and Development

daily decisions in addition to strategic and operational 3. Procedures and methodology

decisions; therefore they need a fair amount of clear, 3.1 Methodology
complete and correct data that will establish the foundation A cross-sectional study was conducted by focusing on
of business performance’s measurements. managers. The collected data was performed using a
According to (Eckerson, 2009) [12], the implementation of the structured questionnaire. The researcher obtained two
correct performance measurements may profoundly interfere hundred sixty-two valid questionnaires.
with the existing organizational culture and with the way of Cronbach’s alpha and Factor analysis were adopted to test the
thinking of the managers and the employees. Therefore those reliability of data, and two tests preceded factor analysis:
behaviors must be altered. Kaiser-Meyer-Olkin (KMO) test of sampling adequacy, and
(Kaplan, and Norton, 1992) [19] noticed many financial and Bartlett’s test of sphericity to test the existence of
non-financial metrics could measure that performance. These interrelations between the items of the questionnaire
measurements include, but they are not limited to return on supported by previous valid and reliable researches to obtain
equity, market share, return on assets, Baldrige’s Criteria for construct validity.
Performance, balanced scorecard method of Harvard The researcher used multiple regressions on the relationship
Business School, return on sales, the performance prism, between collaborative leadership and organizational
traditional performance measurements, and Tobin’s Q and performance.
total shareholder return
(Cooper, and Kaplan, 1991) [19] found that adapting effective 3.2 Variables of this study
and successful measurement program is sometimes an “Leadership” is the independent variable, while
expensive duty concerning the needed leadership, hard work, “Organizational Performance” is the dependent variable.
investments in human resources and financial investments. Various questions from a questionnaire adopting a Likert 5-
Maintaining accurate figures and information will assist point type scale measure each variable.
managers to be more efficient and more well-defined in the The independent variable “Leadership” is measured by 16
functions of the business because sometimes, decisions based statements taken from previous researches: (Luthans, 2014)
[25]
on incorrect information are harmful and may harm the ; (Kouzes, 2009) [21]; (Sherwin, 2014) [30]; (Folkman, 2012)
[14]
brands, even if they are well prepared and designed. This ; (Bride, 2013) [5]; (MindTools, 2015) [28]; (Zhang & Sims,
change requires the efforts of the company’s leaders and top 2005) [33]; (Ancona, 2005) [2]; (Goleman, 2000) [15]; (Burns,
managers that will steadily be the most trustful source of 1978) [7].
support and advises to build and promote critical sustainable The dependent variable “Organizational Performance” is
values, practices, and business procedures (Bower, 1977) [4]. measured by three statements taken from previous
researches: (Sherwin, 2014) [30]; (Folkman, 2012) [14];
2.2.3 The Balanced Scorecard (Hansen & Ibarra, 2011) [17]; (Prime, 2014) [29]; (Goleman,
The balanced scorecard was developed at Harvard Business 2000) [15]; (Kaplan, and Norton, 1992); (AMA, 2007) [1].
School by Dr. Robert Kaplan and David Norton at the
beginning of the 1990s as a system of non-financial 3.3 A Conceptual framework for analyzing data
performance measurements that can be used with the existing For analyzing data, the researcher adopted descriptive
financial measurements to help executives in achieving a statistics, Kaiser-Meyer-Olkin (KMO) test, bartlett's test of
“balanced” view of the overall business. As for the sphericity, reliability analysis, Cronbach’s alpha, and factor
“scorecard,” it refers to a dashboard of given performance analysis.
measures.
Over the years, the balanced scorecard, or BSC, has grown to 3.4 Population and Sample Selection
become a complete strategic planning and management The researcher in this article chose a sampling frame
system that equips the business with an assessment of its composed of professionals in businesses. The findings are
vision, and its strategy. It also helps in performing them. It is based on responses of 262 managers (Sample Size), and the
the deployment of strategic planning at the core of a business, sampling technique is a simple random sampling.
and a sign of progress toward better business control and Comparison with data from other sources for this population
management. According to (Kaplan, and Norton, 1992) [19], proves that the sample is representative.
BSC is a tool to provide information to the company’s
management to be used in the strategy formulation, 4. Findings
implementation, and evaluation. The researcher constructed for this thesis a questionnaire that
The balanced scorecard has four highly interlinked consists of demographic characteristics in addition to two
perspectives to concentrate on: financial, customer, internal parts measuring the following dimensions:
business processes, learning and growth. Also, a well 1. Collaborative Leadership
prepared balanced scorecard must mirror the strategy of the 2. Organizational Performance
company; therefore BSC should contain the following
factors: strategic preferences, strategic objectives, measures Each scale in the nine parts of the questionnaire was scored
about the strategy’s accomplishment, company’s targets on using a 5-point Likert Scale ranging as follows:
the short and long terms and finally initiatives related to  Strongly Disagree (1-SD)
strategy (Balanced Scorecard Institute, 2018).  Disagree (2-D)

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International Journal of Multidisciplinary Research and Development

 Undecided (3-U) Q18: Everyone’s concerns in our company are freely

 Agree (4-A) expressed
 Strongly Agree (5-SA). Q17: Employees in our company are rewarded for suggesting
new product or service
Factor Analysis and Construct Validation Q21: Everyone’s point of view in our company is freely
Factor analysis was adopted by the researcher, in addition to expressed
two statistical tests administered to decide the The researcher in this thesis will call factor one
appropriateness of factor analysis. “Collaborative Leadership".
 Kaisers-Meyer-Olkin (KMO) measure of sampling The second factor accounts for 4.529 percent of total variance
adequacy: 0.945 > 0.50 and is defined by its three items with factor loadings close to
 bartlett's test of sphericity (Chi-Square = 8811.662, P= 0.70:
0.00), and bartlett's test of sphericity was significant Q43: Productivity of employees in our company is much
lower than the industry average
Therefore there are sufficient inter-correlations within the Q44: Trust among employees themselves in our company is
items which allow the use of factor analysis. weak
The first factor accounts for 40.801 percent of total variance Q45: The number of customer complaints within the last
and is defined by sixteen items with factor loadings close to period has increased strongly
0.70: The researcher in this thesis will call factor two
Q2: Management in our company creates a sense of “Organizational Performance”.
community among employees.
Q3: Management in our company promotes teamwork rather Reliability Analysis and Cronbach Alpha
than individual decision making Scale: Organizational Performance
Q4: Management in our company spends the time to form The below tables from 4.1 till 4.4 show that the dimension
friendly relationships with employees entitled “Organizational Performance” is highly reliable with
Q5: Management in our company does not consider itself Cronbach's alpha equals 0.789.
above the employees
Q6: Management in our company allows employees to do Table 1: Case Processing Summary
what they do well Case Processing Summary
Q7: Management in our company involves employees in N %
suggesting new ideas Valid 262 100.0
Q8: Management in our company listens to employees Cases Excludeda 0 .0
Q9: Management in our company enhances employees’ Total 262 100.0
problem-solving skills a. Listwise deletion based on all variables in the procedure.
Q10: Management in our company does what it promises to Table 2: Reliability Statistics
Q11: Management in our company makes me feel like I work
Reliability Statistics
with him/her, not for him/her
Cronbach's Cronbach's Alpha Based on N of
Q12: Employees in our company feel recognized
Alpha Standardized Items Items
Q13: Employees in our company feel valued
Q16: Employees in our company are trained to be creative .789 .789 3

Table 3: Item Statistics

Item Statistics
Mean Std. Deviation N
Q43_ Productivity of employees in our company is much lower than the industry average 2.4046 1.14657 262
Q44- Trust among employees themselves in our company is weak 2.5611 1.28731 262
Q45_ The number of customer complaints within the last period has increased strongly 2.3435 1.19879 262

Table 4: Summary Item Statistics

Summary Item Statistics
Mean Minimum Maximum Range Maximum / Minimum Variance N of Items
Item Means 2.436 2.344 2.561 .218 1.093 .013 3

Testing the Relative Importance of the Independent believed to be related to the dependent variable.
Variables to the Explained Variation in the Dependent
Variable Leadership affects organizational performance
The previous section showed that the instrument
(questionnaire) used to collect data for this thesis is highly Table 5: Model Summary
reliable and significant. The researcher concludes that it is Model Summary
safe and recommended to use the collected data for statistical Adjusted Std. Error of
analysis. Model R R Square
R Square the Estimate
Multiple regression analysis in this study allows the 1 .376a .142 .114 .94102738
researcher to express the dimension previously identified in a. Predictors: (Constant), REGR factor score 1 for analysis
factor analysis as a dependent variable in terms of a set of 1_Leadership
independent variables which the researcher theoretically

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International Journal of Multidisciplinary Research and Development

Table 6: ANOVA
Anova
Model Sum of Squares df Mean Square F Sig.
Regression 36.960 8 4.620 5.217 .000b
1 Residual 224.040 253 .886
Total 261.000 261
a. Dependent Variable: REGR factor score 2 for analysis 1 _ Performance
b. Predictors: (Constant), REGR factor score 1 for analysis 1 _ Leadership

Table 7: Coefficients
Coefficientsa
Unstandardized Coefficients Standardized Coefficients
Model t Sig.
B Std. Error Beta
(Constant) -4.235E-17 .058 .000 1.000
1
REGR factor score 1 for analysis 1 _ Leadership -.180 .075 -.180 -2.399 .017
a. Dependent Variable: REGR factor score 3 for analysis 1 _ Performance

5. Conclusion and recommendations https://hbr.org/2015/12/great-leaders-know-theyre-not-

5.1 Conclusion perfect
For performance, organizational leadership is an essential 9. Cooper, Kaplan. Profit Priorities from Activity-Based
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