The Impact of Leadership Styles on Improving Employee Agility: The Mediating Role of Employee Incentives
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Date
2024-08
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The British University in Dubai (BUiD)
Abstract
The interrelationship between the leadership style and employee agility has been a frequently discussed topic by industry and academia. Different leadership styles have different qualities that impact the employees differently. The core purpose of the present study was to explore the impact of three key leadership styles, namely, transformational, transactional, and laissez-faire, on employee agility through the mediating role of employee incentives and the moderating role of the years of experience. This study was underpinned by contingency theory, quantitative in nature, and based on primary data collected online from 384 respondents in the United Arab Emirates. Data analyses of this study were conducted through the structural equation modelling technique of SmartPLS. Analyses of the direct relationships suggest that transformational leadership style has a significant impact on employee agility. While analysis of the indirect relationships confirms that employee incentives is a significant mediator for the relationship of transactional and laissez-faire leadership with employee agility however, years of experience does not have a moderating role for any of the above relationships. The outcome of this study has identified many key elements that should be focused on by the organisations of various domains to enhance the agility of their employees and achieve the organisational objectives in the United Arab Emirates.
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Keywords
transformational leadership, transactional leadership, laissez-faire leadership, employee incentives, employee agility, compensation, recognition, rewards, UAE