Embracing Transformational Leadership: Team Values and the Impact of Leader Behavior on Team Performance

Abstract

The authors investigated the relationship between transformational leadership behavior and group performance in 218 financial services teams that were branches of a bank in Hong Kong and the United States. Transformational leadership influenced team performance through the mediating effect of team potency. The effect of transformational leadership on team potency was moderated by team power distance and team collectivism, such that higher power distance teams and more collectivistic teams exhibited stronger positive effects of transformational leadership on team potency. The model was supported by data in both Hong Kong and the United States, which suggests a convergence in how teams function in the East and West and highlights the importance of team values. © 2007 American Psychological Association.