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  • Effect of transformational-leadership style and management control system on managerial performance

    Author(s)
    Thi, Thu Nguyen
    Mia, Lokman
    Winata, Lanita
    Chong, Vincent K
    Griffith University Author(s)
    Winata, Lanita
    Mia, Lokman
    Year published
    2017
    Metadata
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    Abstract
    Our study adds perspective on research into choices in the design of management control systems by examining: (1) how transformational-leadership style influences the choice of the design of a comprehensive performance-measurement system (PMS) and reward system; (2) how subordinate managers' reliance on broad-scope accounting (BSA) information facilitates their managerial decision-making processes and managerial performance. Our results suggest that transformational-leadership style has a significant positive and direct effect on managerial performance. We find that it has a significant positive and direct effect on the use ...
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    Our study adds perspective on research into choices in the design of management control systems by examining: (1) how transformational-leadership style influences the choice of the design of a comprehensive performance-measurement system (PMS) and reward system; (2) how subordinate managers' reliance on broad-scope accounting (BSA) information facilitates their managerial decision-making processes and managerial performance. Our results suggest that transformational-leadership style has a significant positive and direct effect on managerial performance. We find that it has a significant positive and direct effect on the use of BSA information and comprehensive PMS, but has no significant effect on reward systems. We also find that transformational-leadership style has a partial indirect effect on managerial performance via three mediators, namely, comprehensive PMS, reward systems, and BSA information. Our findings shed light on how such mediators intervene in the relationship between transformational-leadership style and managerial performance.
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    Journal Title
    Journal of Business Research
    Volume
    70
    DOI
    https://doi.org/10.1016/j.jbusres.2016.08.018
    Subject
    Other economics not elsewhere classified
    Publication URI
    http://hdl.handle.net/10072/339521
    Collection
    • Journal articles

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