Impacting retail store performance: A correlational study of the relationship between transformational and transactional leadership style and bottom line performance indicators

by Mekraz, Adel, Ph.D., CAPELLA UNIVERSITY, 2011, 151 pages; 3473129

Abstract:

This quantitative study, set in the retail environment, investigated the relationship between leadership behaviors of store managers and bottom-line performance indicators of retail stores. The study examined the nature of the relationship between transactional and transformational leadership styles of store managers and store performance results to determine if they were correlated, and the extent of their correlations. The study builds on the seminal work of Bernard M. Bass's Leadership and Performance Beyond Expectations, which laid down the foundation for the transactional and transformational theory of leadership. It also builds on the work of Hise, Gable, Kelly & McDonald (Factors Effecting the Performance of Individual Store Units: An Empirical Analysis, 1983), who studied retailers with multiple units in different geographic locations, how each unit can be expected to have different levels of success, and the factors that can have an impact on the performance of an individual store unit. The study instrument is the Multifactor Leadership Questionnaire (MLQ, 3rd ed.; 2004) developed by Bass and Avolio. Two research questions were considered in this study. First, what is the dominant leadership style (transactional or transformational, as measured by the MLQ) of store managers of a discount retail chain located in the Midwest? Second, to what extent does the leadership style (transactional or transformational, as measured by the MLQ) of store managers of a discount retail chain located in the Midwest correlate with their respective retail store performance (employee turnover rate, customer service scores, inventory shrinkage percentage, and net profit margin percentage)? Appropriate statistical analyses were conducted in order to address the two research questions. These analyses found the dominant leadership style of store managers to be the transactional style of leadership. In addition, further analysis found the existence of a moderate association between transformational leadership style and employee turnover rate.

AdviserMarc Muchnick
SchoolCAPELLA UNIVERSITY
Source TypeDissertation
SubjectsManagement; Organizational behavior
Publication Number3473129

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