A Learning Organization as a Mediator of Leadership Style and Firms’ Financial Performance

Abstract

The purpose of this study is to examine and identify the influence of learning organization as a mediator on the relations between leadership styles (transformational, transactional and passive-avoidant) and ROA. Multifactor Leadership Questionnaire (MLQ 5x-short) for leadership styles while Dimensions of the Learning Organization Questionnaire (DLOQ) for learning organization testing were used in this study with data of 400 respondents from 100 firms in The Stock Exchange of Thailand 100 (SET100). The results of conceptual model by regression analysis were mostly positive: the mediators Promote inquiry, and Provide strategic (elements, of learning organization) mediated partially on relationship between IC (transformational) and ROA. Moreover, the mediator Empower people (elements of learning organization) mediated partially on relationship between CR (transactional) and ROA while no (learning organization) mediated on relationship between passive-avoidant leadership style and ROA. The contributions of this study are two aspects. Practical aspect, the significance of IC, CR, and LF leadership styles effect on financial performances. Promote inquiry, Provide strategic, Empower people dimensions of learning organization mediate on relationship between IC, CR leadership styles and ROA. Understanding is upon conceptual model that examine and identify on the leadership styles, learning organization, and ROA financial performance for theoretical aspect.