Journal of Tourism & Hospitality

Journal of Tourism & Hospitality
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ISSN: 2167-0269

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Research Article - (2016) Volume 5, Issue 1

To Investigate the Relationship between Transformational Leadership with Inter-organizational Entrepreneurship (A Case Study: Kurdistan Province Industrial Firms)

Rastbin P*
Young Researchers Club, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran
*Corresponding Author: Rastbin P, Young Researchers Club, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran, Tel: +98 87 1328 8684 Email:

Abstract

Business environment is dynamic with high rate in transformation and change. The organizations can continue their existence which adapt with the changing environment and have proper flexibility. To reach this situation, it is necessary to have dynamic organization from every aspect, especially from leadership perspective. On the other word, inter- organizational entrepreneurship leads to new production and services and also creating new units and advantage for organization. In this regard, this research investigates the relationship between transformational leadership and inter-organizational research statistical population having more than 10 employees. The research includes 900 firms, among these 260 firms were chosen by randomized sampling as the research sample. The research methodology is measurement-based. Data was gathered with 5 points questionnaire of Likert. The research validity is content- based and the questionnaire reliability has been calculated with a-chronbach (0/784). The research statistical method is descriptive and deductive (spearman correlation test). The result shows there is positive significant relationship between transformational leadership and inter- organizational entrepreneurship.

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Keywords: Transformational leadership; Inter-organizational; Entrepreneurship; Idealized influence; Inspirational motivation; Mental encouragement; Personal consideration

Introduction

The statements of problem

Today environment is accompanied with new waves. The organizations environment is more dynamic than before. It causes the organizations attempt to find real answers to this dynamism in order to reach higher success and performance [1]. In this regard, organizations, increasingly, apply the flexibility, dynamism, and Entrepreneurship motivations/Tendencies as useful tools in reaching competitive success [2]. In addition, to institute the innovation and creativeness in the organization organizations should be able to create strategies to guide and control these changes to help the change-maker leaders and adapt with the changing and transformational world. Actually, the transformational leaders can create flexible organizational environment by their innovative thoughts in all the organization challenging the employers’ emotion and making them to seek new innovative ideas in their job responsibility [3]. During the history, leadership has been regarded as one of the human society components. When leadership is regarded as an important component, it is an important component of management and its attendance/existence is guaranteed by some skills. One can regard these skills as people leadership skills to attain the specific goals [4]. 3 consequences of leadership include: more attempt more than expectation limit among the colleagues, effectiveness and satisfaction among then.

These three consequences can be regarded as 3 important indices in evaluating the practical usage of various leadership styles [5].

The recent advancements in the leadership theories, from charismatic leadership theories , which considered the leader ad an un-normal creature and followers as reliable creatures theories and transformational leadership which pay attention to development and the followers empowerment toward undependable performance [6].

Thus, transformational leadership styles in the new theories are recognized as one of the effective leadership styles. These styles include: idealized effectiveness, inspirational motivation, mental motivation and personal consideration. On this basis, the main problem include “How and leadership style effects on inter-organizational entrepreneurships in the Kurdistan province industrial firms? Is there correlation between leadership style aspects with organizational entrepreneurship?

Transformational leadership

Brenz built the first millstone of transformational leadership theory with identifying two interactive leadership and transformational leadership styles. Brenz believes transformational leadership cerates change, the values transformational leader follows and had endless and infinite values such as freedom, justice and equality. This kind of leaders improves their flower to a higher level of ethics and morality. Briefly, Brenz believes the teansformational leadership “guider people toward improving themselves”. Burnz imagined two kinds of leadership as two different poles in a: transformational leadership and transactional leadership. This idea was expanded by Bass. He believes the main idea in the transactional leadership when job or job environment failure in creating the satisfactory motivation, leader exert his power with clearing and lightening the performance parameters or acting what his followers expect him, and what they would receive. So, while transactional leader motivate its followers to act based on his expectations, transformational leader motivate them to act far more extraordinary [5].

Burns paid his attention into leaders and followers interactive relations. He pun the leadership study into dynamics of conflicts and power, collective aims, actual intentional change and then introduced two leadership model: Transactional and transformational [7]. As Bass insists, developmental processes include: improve the ethics. On this basis, 3 important keywords include: motivation, empowerment and ethics [8]. Hawel and Alive believe, transformational leadership encourages innovation and creativity and creates some benefits for organizational performance.

As a result, the leaders should accept this leadership method and accept the responsibility of self-test performance method. This leadership method and accept the responsibility of self-test performance method. This criterion has positive impact on learning, innovation and organizational performance [9]. Gardner and Auliv cites, the transformational leader has more impact on motivating the innovation in the organization [10]. Dnct and McFarlane consider 4 aspects for transformational leadership: personal/ individual consideration, inspiration, intellectual mobility and charisma [11]. In the personal consideration aspect, from the leadership perspective employees are important for the organization. Leader tries to have personal relationship with the employees. Inspirational motivation include to remind organizational goals for the employees and to encourage them to become responsible toward this aim. In the field of employee’s intellectual stimulation, transformational leaders encourage his employees to face with the challenges and to encounter them follow new solutions. Actually, charisma or ideal influence encourage the employees to this note leader is a model for his follower (Table 1).

Transformational leadership Aspects The Related Index to Each Aspect
Idealized Influence -To induce the honour sense in the member and encourage them to communicate others.
- To show power and competence sense
- To act in a manner which motivate to respect others
- To sacrifice personal profits to save others profits
Inspirational motivation -To speak future optimistically
-To speak seriously about the necessary affairs
-To emphasize on the providence importance
-To give hope the members about attainable, aims
Mental Encouragement - To study the suggestion to ensure their suitability
-To consider the various ideas in solving the problem
-To ask the problem  peruse from various perspective
-To suggest new instruction in doing affairs
Personal consideration -To give time to guide and teach the members
- To behave the members as a person not a member
- To consider the members with the needs and capability and various creativity.

Table 1: Transformational leadership aspects from Bess and Anliver's view.

Transformational leaders apply their best personal abilities to enhance/improve others ideals and guide the people and organization toward higher performance. Transformational leaders have strong tendency toward the change and entrepreneurship behavior in the organization. On the other hand, these leaders follow innovation in their organization. In this regard, the leaders with the characteristics including Idealized influence, mental encouragement, inspired motivation and personal consideration, have considerable impact on creativity and innovation and doing entrepreneurship activities is the organization.

Based on Bronz theory, about transformational leadership “Bess” provided a new theory. “Bess” define transformational leadership as a person who impoverish.

His followers and motivate them toward extra ordinary performance even more than their expectations and encourage them to follow the collective aims instead of personal benefits/ advantages [6].

Transformational leadership, according to Bernard Bess model is flourished based on 4 factors including idealized influence, mental encouragement, inspirational motivation and inspirational supports (Figure 1).

tourism-hospitality-transformational-leadership-factors

Figure 1: Transformational leadership factors.

Idealized n influence: Explains the leaders which act as powerful models for the followers. If a leader is transformational, the sense of respect, admiration and loyalty would be created among the followers, and emphasize on strong commitment to attain the organization prophecies.

Ispirational motivation: This factor describes the leaders which create the motivation in the followers in depicting the future perspective increase their commitment [12].

Mental encouragement: Transformational leaders apply mental encouragement as challenging the thoughts and imaginations and creativity and followers innovation and also toward increasing their knowledge [13].

Personal considerations: This factor happens when a leader services his followers to attain the suitable/ proper requirement in improving the people’s potential [14].

Four steps toward converting into a transformational leader

1- Personalize your management style: Provide personal perspectives try to adopt your leadership style with characters, requirement and team skills. Instead of a boss, try to be a teacher. Try to give over the responsibility based on the interests and talents, but challenge their comfort and relax points. Support their work improvement without considering their obligation and job responsibility, and take them into consideration as an individual not as an employee.

2- Encourage the creativity: Try to develop the innovation through challenging the hypothesizes about what is enforceable or unforeseeable. Encounter the failures such that you going to meet risk. Exert your support, provide the resources and remove the change barriers. When everyone is agreeable, think again. Show your interest toward independent thinking and maintain value and respect for those who challenge you.

3- Guide your team toward your purpose, great aims. Encourage them through manifesting the interests, motivations and optimism, trust and joining their take with a more grant aim become the best one. This is not ending for your persuade them to go forward success through applying their talent and interests.

4- Be a model for tasks and responsibilities Act according to ethical standards, ethically and verbally.

As children imitate their parent behavior and manner of life, try to get note from your team performance, be sure, they apply your notes as a model how behavior, or communicate others. This happen automatically. Whether positive or negative- people follow your pattern and examples. This happen far more in the transformational leaders. Actually, people want be similar you [13].

Inter-organizational entrepreneurship

In the recent decades, strong competition among the organizations and change in industrial domain, forced the organizations and firms to apply innovation and entrepreneurship, because it can help them to keep their competitive ability. From 10th decade, this idea introduced in the literature entrepreneur organizations are detectable through some characteristics including to: recognize the opportunities, flexibility, ability to measure, encourage and giving then reward to innovative behavior, to recognize the opportunity, exploitation and believing these subjects build the basis of organizational entrepreneurship. To exploit this opportunity in a new method can distinguish it from other opportunities and methods and build the basis for succession and supporting the organization goals [15]. On this basis, inter organizational entrepreneurship is a procedure which give proper result in entrepreneurship activities to an entrepreneur supported by his/her organization. Although inter-organizational entrepreneurship, as is a new concept in management literatures, it is related to an organization entrepreneurship originated from entrepreneurship literature [16]. Fray believes inter-organizational entrepreneurship is a procedure in which products (services) or innovative procedure is created with entrepreneurship culture in an organization [17]. Inter-organizational entrepreneurship is a potential instrument to renew the current organizations. Kronwal and Perlman in comparing the traditional organizations with entrepreneur organization, the research don’t limit them self to a defined definition. Gutam and Verma note organizational entrepreneurship include a procedure in which dispersed resources are combined in the environment with unique resources by the entrepreneur to create new resources [18]. Sharma and Chrisman believe, organizational entrepreneurship is a procedure in which people and/or groups by the help of the current organization, a new organization, innovations or views are formed [19].

Researchers believe, to pursuit of the inter-organizational entrepreneurship procedure cause the organization – among the activities done by their knowledge to create a proper fit and challenge in establishing the new activities to, renow the organization this is possible through taking risk and leadership competitive behaviors (Figure 2).

tourism-hospitality-inter-oganization-entrepreneurship

Figure 2: Inter-oganization entrepreneurship aspects.

Innovation: Innovation is regarded as one of organization success and continuation. Innovation is seen as the procedure in which new things and also as the actual result-Also, innovation the gradual and continual enhancement and all the process as in which potential wanting are sought to create giant innovations. In the organization, innovation lead to competitive advantage and firm performance- lampkin and Dess [20] define innovation as a tendency toward encountering and supporting the new ideas, freshness, experimentation and creative processes, in which may be the result of the new products and services or new technologic procedures [21]. On this basis, innovation is identified as a new thing identifier for a situation. Peles considers the innovation as political processes which operate a new important common project to change the rules, laws, procedures and structure, communication, inter and internal organizational exchange and surrounding environment [22].

Leadership: In entrepreneurship concepts Leadership is related to implementing and ending the work. It refers to the market needs and expectations in the future. Moris and Jones refers to the fact leadership requires a practical activity emphasized on predicting and preventing the public sector problem before occurring. And the public sector, this is activism takes the responsibility toward meeting the problems through persistence and concentration on the prediction. Leadership relates to a modern perspective in which the firms [23].

Actively follow opportunities prediction toward development and introducing the new production in order to obtain the leadership benefits and from the environment leadership [24].

Also, leadership show the future requirement prediction and having the dynamic innovations to empower the business. Leadership has explicit relationship with innovation and extravagant ambitions, but separate nature of leadership include its relation with creative dynamic action to empower the business such as acting toward following/ pursuing the business including: to get information and opportunities, to provide investment, to be responsible for teaching the employer and to start long-run planning [25].

Leadership is related with the necessary thing for fertilizing the entrepreneurship belief. Leadership includes considering attempt and hardworking, compatibility and tendency toward taking the responsibility against failure [21].

Risk taking: Risk taking is a very important component in entrepreneurship behavior studies. Tendency toward risk taking gives the situations varieties. Innovative the managers of the organizations are actually entrepreneur. They accept the risk with opportunistic tendency toward consciously measurements and calculations from bureaucracy and political barriers against innovation: taking risk in the organizations and firms in the investment decision and strategic actions in an environment shows the is regarded as un-separable component in strategic decision-making; sometimes the firms are motivated/stimulated with other reasons toward taking risk in order to evaluate and weight the choices, strategically. The researcher’s tendency toward taking risk occurs in the individual level. And, it expands through organizational experience as decision-making existence to organizational level [26]. Taking- risk includes tendency toward pursuing the opportunities which calculate the production loses. Van Kerman believes [27], taking-risk include a risk limit which reflex in such as to choose production, and markets [21]. Taking-risk shows the firm’s tendency to outsource the resources to the projects, uncertainty related to the results. The literature review show there is no attempt toward inter-organizational entrepreneurship.

Increasing the environmental and industry, governments and universities take more the entrepreneurship into consideration, especially practical and empirical aspects. Although with passing time, interest toward these criteria has been increased, the researches show this criterion follow its first stages (Table 2).

Aspects Definition
Innovation The firm tendency toward new ideas and creative procedures
Taking-risk To pursue the opportunities, to provide the resources and risky acts, rapidly;
Leadership To refer to the firms tendency in following the affairs to discover the new opportunities

Table 2: Inter-organizational entrepreneurship aspects from Lumpkin and Dess perspective.

The research necessity: Suturing the various Jobs and wide unemployment of the youth and youth adults gradually led to a phenomenon called entrepreneurship with applying the human innate power, it means creativity. For this, authorities, all around the entrepreneurship results and export the resulted technologies from these creativities according to the studies in this regard, development document of Kurdistan province occupation is to have less than 2% of Kurdistan population economic, cultural, social and political bases and leak of presumption and attempt. Also, cash inflows of these are manufacturer unites. According to the varying country including sanction and boycott, made the manufactures and entrepreneur into real challenge, because they enforced to get the raw material with manifold cost, and accessing to new material was a real challenge. Of course, in recent years, in Kurdistan province, it has been attempted to support the teenagers, young and young adults with new ideas, this issue is very important, because of high manufacturing inside the province to inside consumption if it became possible, it would be necessary to export other parts- small recently, in which these units owners smoothed the way in the young employment. It is very important, but the most important thing is exact entrepreneur designs and ideas by experts with optimistic view toward their environment- to avoid disappointment.

It is necessary for the authorities do their best toward ethical and religious beliefs-thins issue, in our society without biasing toward the ethical and religious beliefs-this issue, in our society encountered with unemployment and unskilled individual and surface-education and degree-based literacy has real shortages, As a consequences, the young suffer from anxiety, social in-gentleness of life, and it is important and it is necessary to propagate/spread the entrepreneurship and support the entrepreneurs. Accordingly, it is necessary to corporate the related organ to reach a real result, what in Kurdistan province and this hard condition is important is to support the entrepreneurs, especially small and medium sized of industries owners, because they can provide the suitable and necessary resources for growth and development and human resources.

Literature Review

Albert tests the transformational leadership theory in working environment of Jamaica country [28]. Based on the result, there is correlation between personal consideration and satisfaction consequence. Merci studied the leadership styles in Malawi’s universities, in this regard; the result showed the teachers identified their manager’s styles transformational and transactional to some extent [29].

Kerstin et al. in a research titles “Leadership style and entrepreneurial change showed the leadership style play an essential role converting in the traditional organization [30]. Kerni et al. in research titled “ to facilitate the inter organizational entrepreneurship procedure in the public section [31], to provide a theoretical model, note till now in entrepreneurship literatures there is no coordination regarding entrepreneurship in the public section. Many researchers think entrepreneurship is relevant with no idea about public section, also, they is contradict with the aims, concepts and values of this section Kerni et al. provide a theoretical model to organizational entrepreneurship procedure. In their model, some components including environment characteristics, organization and organizational and organizational entrepreneurship procedures result have been taken into consideration.

In this model, they tried to depict the key aspects of organizational entrepreneurship relayed on the entrepreneurial behavior in the public section (Figure 3).

tourism-hospitality-organizational-entrepreneurship

Figure 3: Organizational entrepreneurship.

The Research Limitation

Various factors impact the project including:

1. While some the research questions seek to discover the entrepreneurship situation in the studied organization, some manager consider propagating and firms and try to avoid it.

2. Some the research questions investigate the managers’ perspective regarding to inter organizational entrepreneurship, in which some managers in providing their perspective act cautious%.

3. Some managers especially in investigating the current situation, from inter-organizational entrepreneurship aspect go to extremes hypothesize and research model.

Research hypothesis

In this part at first the research hypothesis are offered and in following the research model is introduced on bases of the result in literature review

• There is significant relationship between transformational idealized leadership and inter organizational entrepreneurship in Kurdistan province industrial towns.

• There is significant relationship between inspirational motivation of transformational entrepreneurship and inter-organizational entrepreneurship in Kurdistan province industrial towns.

• There is significant relationship between transformational mental encourage/motivation and interorganizational entrepreneurship.

• There is significant relationship between individual transformational leadership and inter-organizational enterprenurship of Kurdistan province industrial town (Figure 4).

tourism-hospitality-research-theoretical-framework

Figure 4: Research theoretical framework.

Bass and Oliver Transformational Leadership and Kerni and Hisrich inter-organizational entrepreneurship.

Methodology

The research is application- based and the research methodology is descriptive-deductive and based on a verified measurement, and, in this four aspects of transformational leadership style (idealized influence, mental encouragement inspirational motivation, and individual consideration) are evaluated on inter-organizational entrepreneurship in Kurdistan province industrial towns. In this research, the statistical population includes the firms with activity in the industry and production their employees are more l0 persons. The research domain chosen with random sampling as the research contextual method the research reliability is calculated with a- Chronbach (0/784)- for statistical method SPSS software, including descriptive and deductive statistics spearman correlation test), was used and the result showed there is positive significant relationship between transformational leadership aspects and inter organizational entrepreneurship.

The analyze methods

To answer the research hypothesizes, the statistical method is used in two levels. In descriptive statistics median and standard deviation were used. In deductive statistics method, to examine the gathered data normality, Kolmogrof-Smirnoff test was affirmed. So, to test the hypothesizes, parametric methods such as person correlation coefficient and regression analysis were used Normality of the obtained factor score (Kolmogrof Smirnoff test).

The result show transformational leadership sig is more than 0/05. Thus, Zero assumption was accepted. One can say transformational leadership its aspects and inter organizational entrepreneurship have normal distribution. Since data distribution normality is affirmed, parametric tests with higher precision have been used (Table 3).

Normality Result Sig Aspects
Normal 0/603 Inialized Influence
Normal 0/221 Ispirational Motivation
Normal 0/521 Mental encouragement
Normal 0/198 Personal Consideration
Normal 0/736 Trans formational leadership
Normal 0/709 Inter organizational Entrepreneurship

Table 3: The result of Kolmogrof-Smirnoff.

Hypothesis test

Main hypothesis: there is positive significant relationship between transformational leadership and inter organizational entrepreneurship. To examine the correlation between transformational leadership and inter organizational entrepreneurship Pearson correlation coefficient was used. In this research this relationship affirmed and the rate of correlation is r=0/7800 thus, as shown in Table 4, there is positive significant relationship between transformational leadership and employees inter organizational entrepreneurship.

  Pearson Lest Inter-organizational Entrepreneurship Idealized influence
Inter-organizational entrepreneurship Correlation coefficient 1 0/780
Sig   0/000
Frequency 137 137
Idealized Influence Correlation Coefficient 0/780 1
Sig 0/000  
Frequency 137 137

Table 4: The result of Pearson correlation test for the main hypothesis.

The first secondary hypothesis: there is: there is positive significant relationship between idealized influence and inter organizational entrepreneurship.

To examine the correlative relationship between idealized influence and inter-organizational entrepreneurship the Pearson correlation test was used. In this research, this relation was affirmed and the correlation rate is r=0/631. As shown in Table 5 there is positive significant relationship entrepreneurship.

  Pearson Lest Inter-organizational entrepreneurship Idealized influence
Inter-organizational entrepreneurship Correlation coefficient 1 0/631
Sig   0/000
Frequency 137 137
IdealizedInfluence Correlation Coefficient 0/631 1
Sig 0/000  
Frequency 137 137

Table 5: The result of Pearson correlation test for the first secondary hypothesis.

The second secondary hypothesis: To examine the correlation between inspirational motivation and inter organizational entrepreneurship Pearson correlation coefficient. In this research this relation was affirmed and the rate of this coefficient relationship is r= 0/256. As shown in Table 6, there is positive significant relationship between inspirational motivational and inter-organizational entrepreneurship.

  Pearson Lest Inter-organizational entrepreneurship Idealized influence
Inter-organizational entrepreneurship Correlation coefficient 1 0/256
Sig   0/000
Frequency 137 137
Idealized Influence Correlation Coefficient 0/256 1
Sig 0/000  
Frequency 137 137

Table 6: Pearson correlation test for the second secondary hypothesis.

The secondary hypothesis: there is: there is positive significant relationship between mental encouragement and inter-organizational entrepreneurship. To examine the correlation between mental encouragement and employees’ inter-organizational entrepreneurship the Pearson correlation coefficient was used. In this research this relationship was affirmed and the correlation rate is r=0/570. As shown in Table 7, there is positive significant relationship between mental encouragement and employees’ inter-organizational entrepreneurship.

  Pearson Test Inter-organizational entrepreneurship Idealized influence
Inter-organizational entrepreneurship Correlation coefficient 1 0/571
Sig   0/000
Frequency 137 137
Idealized Influence Correlation Coefficient 0/570 1
Sig 0/000  
Frequency 137 137

Table 7: Pearson correlation test for the second secondary hypothesis.

Forth secondary hypothesis: there is positive significant relationship between personal considerations and inter organizational entrepreneurship. To investigate the correlation between personal consideration and inter-organizational entrepreneurship person correlation was used. In this research this relation was affirmed and the rate of the correlation is r=0/231. As shown in Table 8, there is positive significant relationship between personal considerations and inters organizational entrepreneurship.

  Pearson Test Inter-organizational entrepreneurship Idealized influence
Inter-organizational entrepreneurship Correlation coefficient 1 0/231
Sig   0/000
Frequency 137 137
Idealized Influence Correlation correlation 0/231 1
Sig 0/000  
Frequency 137 137

Table 8: The result of Pearson correlation test for forth secondary hypothesis.

The research path analysis

To analysis the path of secondary hypothesized the regression analysis technique has been used. In this technique, by means of Beta-standard, the direct impact of one independent variable on dependant variable is analyzed. According to the result of the regression analysis (Table 9) one can claim there is positive significant relationship among transformational leadership among transformational leadership Aspects include: Idealized influence inspirational motivation, mental encouragement, personal consideration of employees inter organizational entrepreneurship.

Trans formational aspect Beta-standard T Sig
Idealized influence 0/354 3/151 0/000
Inspirational motivation 0/295 2/441 0/000
Mental encouragement 0/370 3/221 0/000
Personal consideration 0/260 2/151 0/000

Table 9: Result of the regression analysis.

Conclusion

The result show there is positive correlation between transformational leadership and inter-organizational leadership and inter organizational entrepreneurship, and the rate of this correlation is r=0/780. In this research the correlation coefficient between idealized influence and inter organizational entrepreneurship of the employees is r=0/631 which show there is correlation between idealized influence and employed inter organizational entrepreneurships. In this research the correlation coefficient between inspirational motivation and inter organizational entrepreneurship is r=0/256 if the employees have sufficient motivation to educate and learning continuously toward empowering themselves and it cause inter organizational entrepreneurship. In this research the correlation coefficient between mental encouragement and employees inter-organizational entrepreneurship and personal consideration is r=0/570. And, the correlation and employees inter organizational entrepreneurship is r=0/231 by means of motivation attraction deduces loyalty and respect and emphasizes on collective/ common mission since. One of the considerable domains with special attention is the role of leadership in guiding and leathering the team, improves the rate of learning and team framework. To attain a proper understanding of the team need perceive the nature of team give real description about in leadership role in improving the inter-organizational entrepreneurship.

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Citation: Rastbin P (2016) To Investigate the Relationship between Transformational Leadership with Inter-organizational Entrepreneurship (A Case Study: Kurdistan Province Industrial Firms). J Tourism Hospit 5:190.

Copyright: © 2016 Rastbin P. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
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