The effect of organisational leadership on value congruence and effectiveness: An integrated model

Abstract

The study explores the influence of transactional and transformational leadership on value congruence and leader effectiveness. Despite the relevance of a leadership-value congruence relationship, a good theoretical framework is lacking. After a review of literature on each of these areas, an integrated model of the relationships between leadership, value congruence and outcomes, is presented. Drawing on previous research, it is proposed that the relationship between leadership and effectiveness be mediated by the efficacy expectancies of followers. It is argued that leader-follower altruistic value congruence would moderate the relationship between transformational leadership and effectiveness. By contrast, leader-follower trading value congruence would moderate the relationship between transactional leadership and effectiveness. Based on the leadership-value congruence model, several research propositions are presented for future empirical verification.