Transformational and contingent reward leadership: Individual, dyad, and group levels of analysis

Abstract

Using multiple levels of analysis in both conceptualization and testing procedures, this study sought to enhance understanding of relationships between transformational and contingent reward leadership and key consequences. Multi-source data were collected from a sample of salespersons, their superiors (sales managers), and company records. Confirmatory factor analysis using LISREL and Within and Between Analysis (WABA) procedures were conducted. Contrary to the hypotheses that included levels of analysis specifications, dyad-level effects and group-level effects were not obtained. Results indicated that relationships among transformational and contingent reward leadership and consequences were based solely on individual differences, individual-level effects. In other words, leaders and followers did not link in dyadic- nor group-based relationships as suggested by transformational leadership theory. Compatibility of the results with previous work and implications of the findings for future leadership research are discussed.