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Inger N. Basker (Department of Strategy and Management, NHH Norwegian School of Economics, Bergen, Norway) Therese E. Sverdrup (Department of Strategy and Management, NHH Norwegian School of Economics, Bergen, Norway) Vidar Schei (Department of Strategy and Management, NHH Norwegian School of Economics, Bergen, Norway) Alexander M. Sandvik (Department of Strategy and Management, NHH Norwegian School of Economics, Bergen, Norway) This paper examines the relationship between chief executive officers' (CEOs') leadership behaviors (consideration and initiating structure) and firm and individual performance (i.e. profitability, affective commitment and employees' willingness to change) in small and medium-sized firms (SMEs) that need to adapt to changing environments. Design/methodology/approachSurvey data was collected from SMEs (28 firms, 235 employees) in the accounting industry along with objective performance register data (profit and return on assets). The predicted model was tested with multilevel structural equations modeling (MSEM) using a maximum likelihood estimator. FindingsThe CEO leadership behavior of initiating structure was positively related to firms' profitability, while the CEO leadership behavior of consideration was positively related to employees' willingness to change and affective commitment. Practical implicationsSmall accounting firms typically offer standard services that are now being replaced by digital solutions. These firms have an incentive to offer new services, such as business advisory services. Therefore, leaders should embrace the duality of consideration and initiating structure to gain employees' willingness to change and optimize overall firm performance. Originality/valueThe paper contributes to leadership literature by examining a novel context (CEO consideration and initiation of structure in SMEs in uncertain environments) using a combination of firm performance measures (e.g. objective outcomes at the firm level and employees' willingness to change as a new measure at the individual level). In addition, it reports a comprehensive test of the full model using MSEM, the findings of which demonstrate the importance of dual leadership behaviors for CEOs. Keywords
AcknowledgementsThis research was supported by the FOCUS (Future-Oriented Corporate Solutions) program at NHH Norwegian School of Economics. We want to thank Henny Marie Fløystad for her help in collecting the data. We are also grateful to Arne L. Kalleberg and Sven A. Haugland for insightful feedback. Thanks also to Jørgen Lund and Sandra Riise in Regnskap Norge for valuable support. CitationBasker, I.N., Sverdrup, T.E., Schei, V. and Sandvik, A.M. (2020), "Embracing the duality of consideration and initiating structure: CEO leadership behaviors and small firm performance", Leadership & Organization Development Journal, Vol. 41 No. 3, pp. 449-462. https://doi.org/10.1108/LODJ-04-2019-0170 Publisher:Emerald Publishing Limited Copyright © 2020, Emerald Publishing Limited Related articles
Definition (1): The initiating structure is the extent to which leaders define their roles and the group members ‘roles in attaining goals. Definition (2): The initiating structure indicates-“The level at which the task and achievement-oriented behaviors are articulated among school administrators (Hoy et al., 1991).” Definition (3): The initiating structure means the degree, to which a leader defines a leader and team member roles, begins actions, organizes group functions, and defines the way tasks are to be done by the group. According to the Ohio State Leadership Studies in 1945, leader behavior has two dimensions such as consideration and initiating structure. The study suggested that leaders show two kinds of behaviors to ensure the achievement of the goal:
Here, we are discussing the second dimension of leader behavior. This style of leadership is task-oriented. In 1945, at Ohio State University, a team of researchers attempted to recognize the leaders’ observable behaviors rather than recognizing their personality traits. They developed a list of 1790 statements to achieve this. This list was shortened to 150 statements planned to measure 9 separate dimensions of leader behavior. These statements were applied to formulate the Leaders Behavior Description Questionnaire (LBDQ). Some of the mentioned statements used for measuring this structure in the LBDQ are:
Which of the following is an example of initiating structure behavior of leaders?Assigning tasks to individuals or work groups, letting subordinates know what is expected of them, deciding how work should be done, making schedules, encouraging adherence to rules and regulations, and motivating subordinates to do a good job are all examples of initiating structure.
What is an example of initiating structure?Initiating structure behaviors include scheduling work, deciding what is to be done (and how and when to do it), providing direction to organizational members, planning, coordinating, problem-solving, maintaining standards of performance, and encouraging the use of uniform procedures.
Which is an example of an initiating behavior?Initiating Structure Behaviors: Setting goals and providing incentives for the effort and productivity of employees. Consideration Behaviors: Mixing with employees, stressing informal interactions, and exchanging personal services.
Which of the following is true about the leader behaviors consideration and initiating structure quizlet?Which of the following is true of the two basic kinds of leadership behaviors—initiating structure and consideration behavior? An initiating structure is directly related to employee welfare. A consideration behavior is more strongly related to high productivity.
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Which of the following is an example of initiating structure or behavior of leaders?
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