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Abstract
Purpose – The research aims to investigate the impact of transformational leadership on employee
championing behavior and to determine the mediating effect of work engagement in the context of
organizational change.
Design/methodology/approach – This is a quantitative approach, which is based on cross-sectional
data. In total, 300 available cases are processed through structural equation modeling in order to infer the
results.
Findings – The results indicate that transformational leadership is significantly related to championing
behavior during organizational change. Moreover, work engagement fully mediates the relationship between
transformational leadership and championing behavior in the context of organizational change.
Practical implications – Managers should emphasize the practice of the transformational leadership
approach, as well as should stress the antecedents of work engagement in order to foster the employee
championing behavior in the context of organizational change.
Originality/value – The research contributes to the change management and human resource management
literature by providing a plausible explanation of the mediating role of work engagement in connecting
transformational leadership and employee championing behavior in the context of organizational change.
Keywords Transformational leadership, Work engagement, Championing behavior, Organizational change
Paper type Research paper
1. Introduction
Employee behavioral dynamics are one of the important areas for managing organizational
change in the field of organizational study (Gilley et al., 2009). Employees show reluctance and
cynicism to engage in the process of organizational change due to the complexity, difficulty
and apprehension associated with the process of change (Brown and Cregan, 2008; Reichers
et al., 1997). Therefore, when handling change, it is important for the organization to ensure
employee change supportive behavior. Championing behavior is one of the distinguishing
attitudes that promote change and is most effective in facilitating organizational change
(Faupel and S€ uß, 2019). However, empirical evidence on employee championing behavior
remains underexplored. Hence, this research aims to bridge the gap by concentrating on
employee championing behavior in a sample of Bangladesh’s banking sector. The banking
sector in Bangladesh is undergoing a major transformational change cycle to succeed in the
global market and to meet the expectations of customers (Julia and Kassim, 2019; Islam et al., South Asian Journal of Business
Studies
2020b; Regi and Golden, 2019) such as product line up-gradation, implementation of © Emerald Publishing Limited
2398-628X
automation and IT systems, introduction of artificial intelligence, green banking systems and DOI 10.1108/SAJBS-01-2020-0016
SAJBS improved banking supervision (Islam et al., 2020b). The banking sector (65%) dominates the
country’s financial sector. The financial sector contributes 3.74% of Bangladesh’s GDP,
including 83.88% for the banking sector. The latest challenges for Bangladesh’s banking
sector are product line up-gradation, automation, the advancement of banks IT system as
well as the implementation of artificial intelligence, green baking system and enriched
banking supervision system. Therefore, various banks in Bangladesh are struggling to cope
with the new changes (Islam et al., 2020a). In addition, the 2019 Global Competitiveness Index
announced that Bangladesh’s banking sector performed worst among the South Asian
countries (Schwab, 2019). Banking organizations, therefore, need to introduce changes and
give the consumer a modernized and innovative service (Gopalakrishnan and Damanpour,
2000). Hence, confronting and addressing this situation championing employees may play a
key role. The formulation of this research is therefore to define the driving factors that boost
championing behavior in the time of organizational changes.
Previous work highlighted that transformation leadership is the most effective leadership
for handling organizational change (Eisenbach et al., 1999; Hoch et al., 2018; Jiang and Chen,
2018) and affecting championing behavior (Herscovitch and Meyer, 2002) and that this
relationship is still uncovered both in the South Asian context and in the banking sector of
Bangladesh. Thus, the present study connects transformational leadership and championing
behavior in the context of organizational change through the framework of the social bond
theory. Bonding between leaders and followers, according to social bond theory, decreases an
employee’s pessimistic attitude (Hirschi, 1969). In addition, literature has emphasized that
transformational leader influences work engagement (Ghadi et al., 2013), as well as work
engagement, improves employee championing behavior during organizational change
(Faupel and S€ uß, 2019). Studies focus on such relationships are also missing within the
banking sector in Bangladesh. Using social bond theory present research, therefore, links
transformational leadership and work engagement during the organizational transition.
Since cooperation between the leader and followers enhances the participation of workers in
managing organizational change. In addition, the current study rationalizes the relation
between work engagement and championing behavior through the lens of psychological
contract theory. According to Rousseau (1995), the psychological contract is an informal or
unwritten arrangement or understanding within an organization between the employee and
the employer. The psychological contract creates employee–employer relations (Rousseau,
1995), which eventually encourages workers to behave as champions in the context of
organizational change. In addition, based on the above discussion, this paper uses
psychological contract theory to reveal the mediating impact of work engagement between
transformational leadership and championing behavior in the sense of organizational
change. In the case of organizational change, the psychological contract of the engaged
employee affects the relationship between transformational leadership and championing
behavior.
The paper structures in the following respects. First, the theoretical and empirical sections
discussed the proposed concepts and hypotheses (Figure 1). Then the methods of analysis
and results from this research are discussed. The discussions and implications of this study
are presented in the following parts. Finally, this paper ends with potential research
limitations and directions.
2. Literature review
2.1 Transformational leadership
Notion of transformational leadership is one of the leading leadership approaches for the last
two decades (Judge and Piccolo, 2004; Tsui et al., 2010). Downton (1973) was the first who
introduced the concept of transformational leadership as a different type of leadership from
Control Variables: Transformational
Key
= Mediating effects
● Gender leadership on
Experience
= Direct effects Work ●
employee
Engagement
H4 behavior
H2 H3
Transformational Championing
Leadership H1 Behavior
Figure 1.
Hypothesized model
3. Hypothesis development
3.1 Transformational leadership and championing behavior
Transformational leadership is one of the appropriate leadership styles to tackle employee
attitudes and reduce cynicism during organizational change (Bass and Riggio, 2006; Busari
et al., 2019). Transformational leader nurtures employee change supportive behavior in order to
effectively implement change in the organization (Islam et al., 2020b). More specifically,
transformational leader influences employee change readiness (Herrmann et al., 2012),
employee positive attitude for change (Bommer et al., 2005) employee commitment to change
(Herold et al., 2008) and employee championing behavior (Faupel and S€ uß, 2019; Islam et al.,
2020b). Hence, Sharma and Krishnan (2012) stated that the most appropriate and universal
style of leadership for managing organizational change is the transformation leader. Yukl
(2008) mentioned that transformational leader not only emphasizes the organizational level of
change but also focuses on the individual level in order to foster the mechanism of
organizational change. In view of this, Faupel and S€ uß (2019) revealed a positive correlation
between transformational leadership and championing behavior in the context of
organizational change. In addition, researchers and practitioners around the world have
highlighted that the transformational leader inspires followers and changes the attitude of
followers to engage in the process of organizational change (Lysova et al., 2015; Yukl, 2008).
Hence, the present study connects transformational leadership and championing behavior in Transformational
the settings of social bond theory. Since diverse and unexpected employee behavior can be leadership on
handled through the creation of bonding between leader and followers (Hirschi, 1969). During
the change, employees experience anxiety, confusion and frustration, which contributes to
employee
negative attitudes, behavior and to some degree contributes to psychological resilience, behavior
negative emotion toward change, disengagement, disruption and misconduct when managing
organizational change (Bommer et al., 2005). According to social bond theory, bonding between
leader and followers decreases the employee’s negative attitude. Furthermore, employee
attachment, engagement, participation and confidence are components of the theory of social
bonding, as well as a foundation to employee positive attitude toward organizational change
(Herold et al., 2008; Herscovitch and Meyer, 2002). Notably, Bangladesh is a collectivist society
(Hofstede, 1980) where individual behavior in an organization depends on the context and
followership (Smith et al., 2002). Bonding between leader and followers thus increases
employee’s positive behavior. Transformational leader is a standard of leadership that raises
followers to the higher stage of motivation, establishes a high degree of bonding between
leaders and followers (Burns, 1978) and affects the championing behavior of followers toward
organizational change. Nadler and Tushman (1989) mentioned that transformational leader
leads followers by stimulating them and enhances championing behavior for the purpose of
organizational change. Hence, the present study proposes:
H1. There is a positive relationship between perceived transformational leadership and
championing behavior in the context of organizational change.
3.2 Transformational leadership and work engagement
The notion of transformational leadership and work engagement often considers a positive
association between leaders and followers (Salanova et al., 2011). Transformational leader
nurtures employee’s positive state of mind, which contributes to the level of employee
engagement (Avolio et al., 2004). Ghadi et al. (2013) noted a strong and positive correlation
between transformational leadership and employee work engagement. Furthermore, during
organizational change Faupel and S€ uß (2019) found a strong association between
transformational leadership and work engagement in their research study. Moreover, Raja
(2012) stated followers’ work engagement is boosted while all dimensions of transformational
leaders work together. Vogelgesang et al. (2013) also highlighted that transformational
leadership behavior is directly connected with employee work engagement and fosters the
level of follower engagement. Zhu et al. (2009) mentioned that transformational leader
develops dynamism, innovativeness and visionary mindset on an employee by ensuring
employee work engagement. By applying social bond theory, this study connects the
association between transformational leadership and work engagement during
organizational change. Bonding between transformational leadership and followers
involves engaging followers during organizational change by encouraging, empowering
and aligning the behaviors of followers with the process of organizational change. Moreover,
bonding between leaders and followers establishes an organization’s learning and
information sharing atmosphere that provides psychological support and engages
followers in the organization’s complex tasks (Breevaart et al., 2014; Mozammel and
Perrry, 2016). Hence, the present study proposes:
H2. There is a positive relationship between perceived transformational leadership and
work engagement in the context of organizational change.
4. Methods
4.1 Sample procedure for data collection
The population of this study has been employees working at DSE 30 indexed listed banks in
Bangladesh. DSE 30 indexed built with 30 leading companies (five banks) that can be
mentioned as investable index of exchange. In addition, DSE 30 indexed listed organizations
represent around 51% of the overall capitalization of the equity market. Latest reports have
revealed that a total of 26,474 employees serve in Bangladesh at DSE 30 indexed listed banks. Transformational
Prior studies related to organizational change management used sample close to 300 for leadership on
performing SEM analysis (Faupel and S€ uß, 2019; Islam et al., 2020a). Hence, non-probability
judgmental sampling technique was applied in this research to invite participants. Because,
employee
judgmental sampling allows researchers to choose the respondents based on their knowledge behavior
and experience which helps to minimize error (Cochran, 1977). According to Burns and Bush
(2006) in judgmental sampling individual respondents from the target group represents an
expert. Prior studies have also demonstrated the appropriateness of judgmental sampling
(Cunningham, 2010; Şatır, 2006). Data for this research were collected in two phases (Reynolds
et al., 1993). Respondents were selected from the full-time employees from Bangladesh’s
banking sector. Respondents who had not experienced any form of changes during his/her
tenure were excluded from the data collection process. Hence, few things were common among
the respondents: (1) respondents must be a full-time employee; (2) respondents must have
experienced or gone through the organizational change process during the tenure. In addition,
the collection of data was not restricted to one particular type of organizational change. In the
first phase, 10% of the total sample was collected as a pilot survey to test data normality as well
as data quality. Pilot study results were satisfactory to proceed to the next phase. In the second
phase, in order to meet the target sample size of 300, 585 questionnaires were distributed. A
total of 347 respondents returned their responses (59% response rate), among them 47
responses were eliminated for being incomplete and unengaged responses. Finally, 300
responses were used to perform structural equation modeling (SEM). A sample size of 300
found to be sufficient for SEM analysis from a power analysis with an effect size of 0.15 and a
probability error of 0.05. Also, Kaiser–Meyer–Olkin (KMO) measurement of sampling
adequacy reports 0.842, which was higher than the recommended value of 0.6 (Kaiser, 1974).
Demographic information of the participants in the survey process of the present research
showed all the respondents were full-time employees and had experienced change during his or
her current tenure. Notable, Bangladesh’s banking sector is going through transformational
change process. According to Jick and Peiperl (2003) transformational organizational change is
known as a reorientation of the organizations. Transformational organizational change is
based on systemic reform or shift to increase operational efficiency. Hence, this study asked
respondents what types of transformational change they experienced during his or her tenure
and according to the reply of the respondents, 7% experienced administrative change, 10%
experienced leadership change, 4% experienced market change, 19% experienced product
change, 6% experienced process change, 35% experienced service change, 3% experienced
supply chain change and 16% experienced technology change. The summary of the
respondents’ demographic profile is presented in Table 1.
4.2 Measures
All measures (Table 3) employed in this research are well established in the literature and
adopted with modification to be used.
Transformational leadership was measured using Carless et al. (2000)’s global
transformational leadership (GTL) seven items scale ranging from 1 (strongly disagree) to
5 (strongly agree). An example item is: “My supervisor gives encouragement and recognition
to staff”. The reliability score (Cronbach’s alpha) was 0.93.
Work engagement of an individual employee was measured using six items scale ranging
from 1 (strongly disagree) to 5 (strongly agree). Six items were adopted from Islam et al. (2020a).
An example item is: “I feel motivated to put extra effort in the context of organizational change”.
The Cronbach’s alpha (α) of the scale obtained by Islam et al. (2020a) was 0.8.
This research adopted four items from Herscovitch and Mayer’s (2002) to measure CB four
items scale ranging from 1 (strongly disagree) to 5 (strongly agree). A sample question of this
SAJBS Item Category Frequency %
scale includes: “I encourage the participation of others in the change”. Herscovitch and
Mayer’s (2002) reported a high composite reliability (CR) value of the scale (CR 5 0.86).
that the hypothesized model fitted the data adequately (χ 2 5 195.12, χ 2/df 5 2.01, p 5 0.000,
GFI 5 0.93, AGFI 5 0.90, CFI 5 0.94, TLI 5 0.92, NFI 5 0.89, RMSEA 5 0.058 and
SRMR 5 0.0573). All items were loaded significantly at p > 0.001 level from 0.44 to 0.87 and
both of the steps met the requirements.
Results of
Hypothesis relationship β-value with significance ( p-value) analysis
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