Relationship between leadership style and intrinsic motivation moderating effects of power distance orientation and time with leader

MINISTRY OF EDUCATION HOCHIMINH CITY UNIVERSITY OF ECONOMICS - LE HUU MINH QUAN RELATIONSHIP BETWEEN LEADERSHIP STYLE AND INTRINSIC MOTIVATION: MODERATING EFFECTS OF POWER DISTANCE ORIENTATION AND TIME WITH LEADER MASTER OF BUSINESS ADMINISTRATION THESIS HoChiMinh City – 2012 MINISTRY OF EDUCATION HOCHIMINH CITY UNIVERSITY OF ECONOMICS LE HUU MINH QUAN RELATIONSHIP BETWEEN LEADERSHIP STYLE AND INTRINSIC MOTIVATION: MODERATING EFFECTS OF POWER DISTANCE ORIENTATION AND TIME WITH LEADER Major: Business Administration Major Code: 60.34.05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: DR PHAM QUOC HUNG HoChiMinh City – 2012 i ACKNOWLEDGEMENT Without the significant support and contributions made by other people, I would have not been able to make this thesis a reality I am especially grateful to Dr Pham Quoc Hung, my mentor This thesis could never been completed without his help and guidance He inspired me to explore the topic from different viewpoints He guided me throughout the process of formulating the ideas to establish my research on a sound foundation While my study was in progress, Dr Hung timely pointed out my mistakes and assisted me with insightful comments by his wisdom, remarkable professional knowledge, wealth of experience and passion I am fortunate to have great friends and colleagues who have supported me throughout the entire period of my studies until accomplishing this thesis, especially to those who helped me with my data collection I have many other people at Ho Chi Minh University of Economics to thank for helping me along my scholastic journey I deeply appreciate my wife and my expectant baby, for their endless love and always wholeheartedly supporting me throughout my most difficult time She gave me time to be a student when she needed a husband to share with her and take care of her during her very first hard trimester of her pregnancy I cannot list down everyone who helped me but I extend my thanks to each of them Truly, without you, it would never have turned out this well ii ABSTRACT Using 253 followers in HoChiMinh city – the biggest city in Vietnam – the author found that part of the transformational and transactional leadership behaviours were related to follower’s intrinsic motivation In detail, core transformational leadership and high performance expectation positively affected follower’s intrinsic motivation while contingent punishment posed negative impact Providing individualized support, intellectual stimulation, and contingent reward were not found to be related to intrinsic motivation Assumptions were provided to back up the findings Results of the study did not prove the moderating role of power distance orientation on the relationship between leadership behaviors and follower’s intrinsic motivation However, time with leader showed to be the moderator for the relationship: the relationship between core transformational leadership behaviors and follower’s intrinsic motivation was more positive when follower had shorter working relationship time with leader Along the study, results also showed that there was significant effect of age on follower’s intrinsic motivation, both males and females However, difference magnitudes of effects between males and females were observed at different age groups Key words: transformational leadership, transactional leadership, intrinsic motivation, time with manger iii TABLE OF CONTENT Page ACKNOWLEDGEMENT i ABSTRACT .ii LIST OF TABLES vii LIST OF FIGURES viii CHAPTER 1: INTRODUCTION TO THE STUDY 1.1 Research background 1.2 Research objectives 1.3 Research scope and approach 1.4 Research structure CHAPTER 2: LITERATURE REVIEW, THEORETICAL FRAMEWORK, AND HYPOTHESES 2.1 Leadership behaviors 2.1.1 Transactional leadership behaviors 2.1.2 Transformational leadership behaviors 2.2 Leadership and intrinsic motivation 2.2.1 Intrinsic motivation 2.2.2 Transformational leadership and intrinsic motivation 2.2.2.1 Core transformational leadership behaviors and intrinsic motivation 2.2.2.2 High performance expectation and intrinsic motivation 2.2.2.3 Providing individualized support and intrinsic motivation iv TABLE OF CONTENT Continued 2.2.2.4 Intellectual stimulation and intrinsic motivation 2.2.3 Transactional leadership and intrinsic motivation 10 2.2.3.1 Contingent reward and intrinsic motivation 10 2.2.3.2 Contingent punishment and intrinsic motivation 10 2.3 Power distance orientation as a moderator of the leader behaviorfollower’s intrinsic motivation relationship 11 2.3.1 Cultural values as moderators of the leader behavior-follower’s intrinsic motivation relationship 11 2.3.2 Power distance orientation as the moderator of the leader behaviorfollower’s intrinsic motivation relationship 12 2.4 Time with leader as a moderator of the leader behavior-follower’s intrinsic motivation relationship 11 CHAPTER 3: RESEARCH METHODOLOGY 16 3.1 Research design 16 3.2 Questionnaire development 17 3.2.1 Transformational leadership 18 3.2.2 Transactional leadership 19 3.2.3 Power distance orientation 19 3.2.4 Intrinsic motivation 19 3.2.5 Control variables 19 3.3 Translation of the questionnaire 20 3.4 The pilot study 21 v TABLE OF CONTENT Continued 3.4.1 Pilot study phase 21 3.4.2 Pilot study phase 22 3.5 Target population 24 3.6 Sample size 24 3.7 Selecting the sample and collecting data 25 3.8 Sample characteristics 26 3.9 Methods of data analysis 26 3.9.1 Data cleaning 26 3.9.2 Reliability 26 3.9.3 Confirmatory factor analysis 27 3.9.4 Analysis of Variance (one-way and two-way ANOVA) 28 3.9.5 Regression analysis 28 CHAPTER 4: DATA ANALYSIS 30 4.1 Data cleaning 30 4.2 Profiles of qualified respondents 30 4.3 Normality analysis 32 4.4 Reliability of the measurements 33 4.5 Confirmatory factor analysis 34 4.6 Analysis of variance 37 4.7 Correlation analysis 41 4.8 Hypotheses testing 43 vi TABLE OF CONTENT Continued 4.8.1 Effects of leadership behaviors on follower’s intrinsic motivation (H1a, H1b, H1c, H1d, H2a, H2b) 43 4.8.2 Moderating effects of power distance orientation on the leadership behaviors-follower’s intrinsic motivation relationship (H3a, H3b) 45 4.8.3 Moderating effects of Time with Manager on the leadership behaviorsfollower’s intrinsic motivation relationship (H4a, H4b) 47 CHAPTER 5: DISCUSSION 50 5.1 Discussions of findings 50 5.2 Practical implications 53 5.3 Contribution of the current study 54 5.4 Limitations and future research 55 REFERENCES 57 RESERCH APPENDICES 63 Appendix A: Vietnamese Questionnaire 63 Appendix B: Reliability Test Results 66 Appendix C: Testing Regression Assumptions 72 vii LIST OF TABLES Number Page 3-1 Survey Item Used in the Study 23 3-2 Assessing Fit Indices 28 4-1 Variables Included in the Analyses 30 4-2 Socio-demographic Characteristics of the Qualified Samples 31 4-3 Assessment of Normality 32 4-4 Summary of Cronbach Alpha Measures Across Variables 34 4-5 Assessing Fit Indices – Hypothesized Model 35 4-6 Standardized Regression Weights – Hypothesized Model 35 4-7 Assessing Fit Indices – Modified Model 37 4-8 Analysis of Variance 38 4-9 2-Way ANOVA of Age and Sex 40 4-10 Descriptive Statistics and Correlations 42 4-11 Multi Linear Regression: Model summary, ANOVA & Coefficients 44 4-12 Power Distance Orientation Moderates the Relationship between Core Transformational Leadership and Subordinate Intrinsic Motivation 46 4-13 Power Distance Orientation Moderates the Relationship between High Performance Expectation and Subordinate Intrinsic Motivation 46 4-14 Power Distance Orientation Moderates the Relationship between Contingent Punishment and Subordinate Intrinsic Motivation 47 4-15 Time with Manager Moderates the Relationship between Core Transformational Leadership Behaviours and Subordinate Intrinsic Motivation 48 viii LIST OF FIGURES Number Page 2-1 The Hypothesized Model 15 3-1 The Research Process 18 4-1 Hypothesized First-order 32-items CFA Model 36 4-2 2-Way ANOVA of Age and Sex – Plot of Means 41 5-1 Building Blocks for the 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A Nói người quản lý trực tiếp Anh/Chị, vui lòng cho biết mức độ không đồng ý/ đồng ý Anh/ Chị với phát biểu Vui lòng khoanh tròn 01 số thích hợp cho phát biểu Các phát biểu 1-21 bắt đầu “Người quản lí trực tiếp tơi…” Hồn tồn phản đối ▼ Hoàn toàn đồng ý ▼ …truyền đạt tầm nhìn/ định hướng cảm hứng cho nhân viên …là hình mẫu cơng việc cho nhân viên …đẩy mạnh hợp tác hướng thành viên đến mục tiêu chung nhóm …thể rõ anh/ chị ln kỳ vọng nhiều từ …kiên yêu cầu thành tích tốt …sẽ khơng hài lòng làm tốt 7 …hành động mà không cân nhắc đến cảm xúc …thể tôn trọng cảm xúc cá nhân …hành xử với mà không quan tâm đến cảm xúc cá nhân 10 …cân nhắc đến cảm xúc cá nhân trước hành động 11 …yêu cầu nghĩ vấn đề cũ qua lăng kính 12 …đưa câu hỏi thơi thúc tơi nghĩ cách làm việc 13 …khuyến khích tơi suy nghĩ/ đánh giá lại cách tơi làm việc 14 …đưa ý kiến thúc xem xét lại vài vấn đề công việc mà cho 15 …ln đưa phản hồi tích cực làm tốt 16 …tán thưởng/ tuyên dương cách đặc biệt làm tốt 64 17 …khen thưởng làm tốt mục tiêu đặt 18 …thường khơng cơng nhận thành tích tốt 19 …thể khơng hài lòng tơi làm không tốt 20 …cho biết làm không tốt 21 …nhắc nhở hiệu công việc không đạt yều cầu B Về quan hệ cấp trên-cấp nói chung, vui lòng cho biết mức độ đồng ý Anh/ Chị với phát biểu Vui lòng khoanh tròn 01 số thích hợp cho phát biểu Hồn tồn phản đối ▼ 22 Trong hầu hết tình huống, cấp nên đưa định mà khơng cần Hồn toàn đồng ý ▼ 7 7 tham khảo ý kiến cấp 23 Trong vấn đề liên quan đến công việc, cấp có quyền mong đợi phục tùng từ cấp 24 Những nhân viên hay thắc mắc quyền hạn đơi khiến người quản lý bớt hiệu 25 Một quản lý cấp cao đưa định, nhân viên khác công ty không nên thắc mắc 26 Cấp không nên thể phản cấp 27 Cấp cần có khả đưa định mà không cần tham khảo ý kiến 7 người khác 28 Nếu để cấp tham gia vào trình đưa định, cấp quyền lực 29 Không vi phạm nguyên tắc công ty – nhân viên nghĩ lợi ích cơng ty C Nói cơng việc Anh/ Chị, vui lòng cho biết mức độ đồng ý Anh/ Chị với phát biểu Vui lòng khoanh tròn 01 số thích hợp cho phát biểu Các phát biểu 30-38 bắt đầu “Tơi cảm thấy gắn bó cơng việc vì…” Hồn tồn phản đối ▼ Hồn tồn đồng ý ▼ 30 …tơi thích tìm giải pháp cho vấn đề phức tạp 31 …tơi thích xây dựng quy trình làm việc 32 …tơi thích cải thiện quy trình sản phẩm có D Cuối cùng, vui lòng cho biết vài thơng tin thân Anh/ Chị: 65 39 Giới tính: □ Nam 41 Trình độ học vấn □ Nữ □ Đại học 42 Anh/ Chị bắt đầu làm từ năm năm 40 Năm sinh: □ Sau đại học ………… □ Khác 43 Anh/ Chị bắt đầu làm việc công ty từ năm 44 Anh/ Chị làm việc với người quản lí trực tiếp công ty bao lâu? 45 Người quản lí trực tiếp Anh/ Chị mang quốc tịch gì? 46 Công ty Anh/ Chị làm việc ………… ………… tháng (ví dụ 12 tháng) □ Quốc tịch Việt Nam □ Có vốn đầu tư nước ngòai Chân thành cảm ơn! ……… □ Quốc tịch khác □ Không có vốn đầu tư nước ngòai 66 APPENDIX B Appendix B-1: Reliability Test for Core Transformational Leadership Behaviors Reliability Statistics Cronbach's Alpha N of Items 891 Item Statistics Mean Std Deviation N X1 4.61 1.566 253 X2 4.52 1.605 253 X3 5.03 1.447 253 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected ItemItem Deleted Total Correlation Alpha if Item Deleted X1 9.55 7.994 800 832 X2 9.64 7.858 789 843 X3 9.13 8.804 773 858 Appendix B-2: Reliability Test for Core High Performance Expectation Reliability Statistics Cronbach's Alpha N of Items 673 Item Statistics Mean Std Deviation N X4 5.19 1.444 253 X5 5.30 1.249 253 X6 5.08 1.373 253 67 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected ItemItem Deleted Total Correlation Alpha if Item Deleted X4 10.38 5.555 351 759 X5 10.28 5.185 578 468 X6 10.49 4.822 551 488 Appendix B-3: Reliability Test for Providing Individualized Support Reliability Statistics Cronbach's Alpha N of Items 893 Item Statistics Mean Std Deviation N X7 4.25 1.785 253 X8 4.55 1.597 253 X9 4.77 1.693 253 X10 4.21 1.506 253 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected ItemItem Deleted Total Correlation Alpha if Item Deleted X7 13.54 17.377 831 837 X8 13.23 20.807 658 900 X9 13.01 18.726 774 859 X10 13.58 19.840 807 850 68 Appendix B-4: Reliability Test for Intellectual Stimulation Reliability Statistics Cronbach's Alpha N of Items 893 Item Statistics Mean Std Deviation N X11 4.51 1.457 253 X12 4.55 1.437 253 X13 4.73 1.428 253 X14 4.55 1.415 253 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected ItemItem Deleted Total Correlation Alpha if Item Deleted X11 13.83 14.882 705 884 X12 13.79 14.129 809 845 X13 13.61 14.525 769 861 X14 13.79 14.573 774 859 Appendix B-5: Reliability Test for Contingent Reward Reliability Statistics Cronbach's Alpha N of Items 860 69 Item Statistics Mean Std Deviation N X15 5.18 1.526 253 X16 4.71 1.549 253 X17 4.66 1.650 253 X18 5.08 1.618 253 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected ItemItem Deleted Total Correlation Alpha if Item Deleted X15 14.45 16.447 773 794 X16 14.92 15.616 844 763 X17 14.96 15.594 769 793 X18 14.55 19.106 468 915 Appendix B-6: Reliability Test for Contingent Punishment Reliability Statistics Cronbach's Alpha N of Items 642 Item Statistics Mean Std Deviation N X19 4.70 1.580 253 X20 5.26 1.277 253 X21 5.29 1.269 253 70 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected ItemItem Deleted Total Correlation Alpha if Item Deleted X19 10.55 5.534 270 828 X20 9.99 5.325 522 458 X21 9.97 4.912 624 319 Appendix B-7: Reliability Test for Power Distance Orientation Reliability Statistics Cronbach's Alpha N of Items 738 Item Statistics Mean Std Deviation N X22 3.34 1.710 253 X23 4.37 1.577 253 X24 3.72 1.508 253 X25 3.03 1.759 253 X26 3.02 1.568 253 X27 4.05 1.953 253 X28 2.44 1.475 253 X29 4.38 1.836 253 71 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected ItemItem Deleted Total Correlation Alpha if Item Deleted X22 25.02 52.079 354 726 X23 23.98 51.778 418 713 X24 24.64 52.407 415 714 X25 25.32 46.204 604 674 X26 25.33 47.889 617 676 X27 24.31 50.397 344 732 X28 25.91 50.683 518 696 X29 23.98 53.642 250 748 Appendix B-8: Reliability Test for Intrinsic Motivation Reliability Statistics Cronbach's Alpha N of Items 872 Item Statistics Mean Std Deviation N X30 5.07 1.434 253 X31 4.92 1.355 253 X32 5.10 1.350 253 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected ItemItem Deleted Total Correlation Alpha if Item Deleted X30 10.02 6.420 711 861 X31 10.17 6.324 804 774 X32 9.99 6.607 750 822 72 APPENDIX C: Testing Regression Assumptions Appendix C-1: Test of Linearity Appendix C-2: Test of Normally Distributed Error ...MINISTRY OF EDUCATION HOCHIMINH CITY UNIVERSITY OF ECONOMICS LE HUU MINH QUAN RELATIONSHIP BETWEEN LEADERSHIP STYLE AND INTRINSIC MOTIVATION: MODERATING EFFECTS OF POWER DISTANCE ORIENTATION. .. the leadership behaviors-follower’s intrinsic motivation relationship (H3a, H3b) 45 4.8.3 Moderating effects of Time with Manager on the leadership behaviorsfollower’s intrinsic motivation relationship. .. levels of intrinsic motivation as a function of time shared between leaders and their followers Hypothesis 4a: Tenure with a leader moderates the relationship between transformational leadership