An empirical study of transformational leadership, team performance and service quality in retail banks

Research output: Journal article publicationJournal articleAcademic researchpeer-review

57 Citations (Scopus)

Abstract

The discipline of operations management (OM) has long been offering differing quantitative techniques for improving the efficiency of banking operations. However, there has been a trend in recent years that operations and services of the banking industry are becoming more diverse and unstructured, rendering many traditional OM quantitative techniques less effective in performance improvement. By integrating the literature on banking operations, service quality, leadership style and work teams, we argue that leadership style and team performance are crucial concerns determining the service quality performance of today's banking operations in a team setting. Using data collected from 192 employees from 32 operational teams (a leader and five members in each team) in 15 retail banks in Macau, China, we investigated whether the five dimensions of transformational leadership have an impact on team performance with respect to team cohesion, team leader job satisfaction and team competence; and whether the dimensions of team performance have an impact on such service quality dimensions as reliability and responsiveness. We found that one of the dimensions of transformational leadership and two of the dimensions of team performance have a significant impact on service quality. We discuss the implications of the findings for research and practise.
Original languageEnglish
Pages (from-to)690-701
Number of pages12
JournalOmega
Volume39
Issue number6
DOIs
Publication statusPublished - 1 Dec 2011

Keywords

  • Banking
  • Management
  • Operations management
  • Statistics

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research
  • Information Systems and Management

Cite this