ISSN Print: 2381-1196  ISSN Online: 2381-120X
International Journal of Investment Management and Financial Innovations  
Manuscript Information
 
 
An Empirical Investigation of Leadership Styles and Their Effect on Organisational Performance of Banks in Ado Ekiti, Nigeria
International Journal of Investment Management and Financial Innovations
Vol.1 , No. 2, Publication Date: Jun. 11, 2015, Page: 49-55
1718 Views Since June 11, 2015, 9014 Downloads Since Jun. 11, 2015
 
 
Authors
 
[1]    

Awolusi Olawumi Dele, Department of Business Management, College of Business and Social Sciences, Covenant University, Ota, Ogun State, Nigeria.

[2]    

Onikoyi Idris Adegboyega, Department of Business Administration, Faculty of Management Sciences, Osun State University, Okuku, Osun State, Nigeria.

[3]    

Akindele Kayode Taiwo, Department of Business Administration, Faculty of Management Sciences, Ekiti State University, Ado Ekiti, Ekiti State, Nigeria.

 
Abstract
 

Purpose- The purpose of this paper is to examine the effect of leadership style on organizational performance of banks in Ado Ekiti, Nigeria. Design/methodology/approach- The empirical study was conducted via a survey on 450 randomly selected respondents from all the participating banks in the survey. The results of the reliability analysis showed that the cronbach’s alpha of all the three constructs measuring Leadership styles and organisational performance were well above the recommended minimum of 0.70. In addition, Principal Components extraction, was the technique used to test Discriminant Validity, with a factoring method of “Principal Components”, applying an Orthogonal Varimax rotation with Kaiser’s normalization. Based on these conditions, 3 Factors were obtained (evidence of convergent validity), which was consistent with the 3 variables used in the model. The underline hypotheses were analysed and tested via regression analysis, with the aid of SPSS (Statistical Package for Social Sciences, version 20.0). Findings- Findings show a positive relationship between the two leadership styles (transactional: B=0.306, 0.042< α=0.05; transformational=0.336, 0.029< α=0.05) and organisational performance. Research limitations/implications- The paper provides a framework for future research to explore organisational performance as a consequence of its leadership styles. In addition, since the study reveals that there is a positive relationship between both leadership styles and organizational performance, hence, it is recommended that, banks operating within the scope of the study could adopt any of the two leadership styles in order to achieve the desired organizational performance. Practical implications- theoretically, the model in this study provides predictive implications on organisational performance of Nigerian banks, given the various leadership styles in practice. Hence, to improve organisational performance, banks could control their leadership styles. Originality/value- This research contributes to studies of organizational leadership styles, and the consequential impact on performance.


Keywords
 

Leadership Style, Organisational Performance, Banking, Nigeria


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