Multilevel models of transformational leadership, behavioral integration of top management team and manager ambidexterity in SMEs

Abstract

Purpose This paper aims to investigate the effect of transformational leadership (TL), behavioral integration of top management team (TMT) and team conflict on manager ambidexterity behavior. Design/methodology/approach Hierarchical linear modeling has been applied to test the degree of influence of TL and behavioral integration of TMT on manager ambidexterity using data collected from 60 chief executive officers (CEOs) and 322 TMT members of small- and medium-sized enterprises in the Chinese electronic commerce industry. Findings The results suggest the following: transformational leadership is positively associated with the behavioral integration of TMT and a high level of TMT behavioral integration strengthens the positive relationship between transformational leadership and manager ambidexterity. Also, team conflict moderates the mediating role of TMT behavioral integration in the relationship of transformational leadership to manager ambidexterity. Research limitations/implications First, this study does not directly test whether transformational leadership encourages a focus on manager ambidexterity, although the results on behavioral integration draw attention to the usefulness of such leadership. Second, in focusing on manager ambidexterity, this paper omits key variables, especially skills and abilities. Practical implications Given that several aspects of leadership can be learned and adjusted, the findings suggest that organizations can improve their individual ambidexterity by helping the CEOs develop and display transformational leadership through training and mentoring. TMTs were found to rely mostly on the behavioral integration approach (collaborative behavior, quality of information exchange and joint decision-making) and team conflict management. Such reliance, in turn, predicts effective team behavioral coordination and subsequent manager ambidexterity. Originality/value First, this study goes beyond the current research that focuses primarily on ambidexterity at the inter-organizational alliance, firm and business unit levels. This earlier research lacks a conceptually and empirically validated understanding of ambidexterity at the level of the manager. In contrast, by investigating and examining the antecedents of manager ambidexterity behavior, the study develops an individual perspective to elucidate the ambidextrous mechanisms. Second, the study also contributes by explaining how transformational leadership relates to manager ambidexterity. To date, only limited research has disentangled how transformational leaders enhance managers’ teamwork (e.g. behavioral integration) and how such leaders affect the ambidextrous orientation of managers.