Modeling leadership and team performance: The mediation of collective efficacy and the moderation of team justice

Abstract

Purpose The purpose of this paper is to develop a research model that explains team performance based on social cognitive theory and social exchange theory. In the model, team performance indirectly relates to three kinds of leadership (i.e., charismatic, autocratic and considerate) via the full mediation of collective efficacy. At the same time, team justice as a focus in this study is examined as a moderator in the model. Design/methodology/approach The research hypotheses of this study were empirically tested using two-wave data collection across insurance sales teams from a leading bank holding company which is the largest bank holding company in Taiwan. In the first-wave data collection, researchers of this study surveyed six people anonymously from each sales team, including a team leader and five team members. Three months later, the researchers conducted the second-wave data collection by obtaining team performance data from the department of human resource management, which was an independent rater for each team's performance. Two-wave data collection from 59 teams was achieved for verifying the hypothesized effects. Findings The team-level test results show that collective efficacy fully mediates the relationship between charismatic leadership and team performance and between considerate leadership and team performance. Justice moderates the relationship between collective efficacy and team performance and between charismatic leadership and collective efficacy. Originality/value This study has two major theoretical implications. First, this study conceptualized three distinct kinds of leadership as major determinants of team performance from a social exchange perspective. Such a theoretical conceptualization of leadership not only broadens the boundary of leadership beyond traditional one such as transactional leadership based on the theory of contingent reward but also closely reflects the practical status quo of leadership of teams. Second, this research incorporated social exchange theory into the framework of team performance in social cognitive theory. Specifically, this study theorized and validated justice as a moderator in the development of team performance.