The Influence of Transformational Leadership and Japanese Style Management in Operational Performance of Japanese Enterprises in the Electronic Industry
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Abstract
The increasingly competitive global economy pushed companies to exploit all of their available resources as a means of achieving competitive advantage. Especially the electronics industry, which has been affected by the manufacturing and export sectors, has continued to decline. The purpose of this research was to investigate and to develop the causal structural relationship model of factors influencing operational performance, to analyze and to compare direct and indirect effects of factors influencing operational performance, consisting of 3 latent variables. This research was conducted using a questionnaire as an instrument to collect data from operators 551 samples with stratified random sampling. This process was completed using the principles of structural equation modelling which required confirmatory factor analysis on the measurement model and path analysis on the structural model.
The results suggested that the theoretical model and empirical data showed a good fit χ2 =168.509, df =62, CMIN/df =2.72, Probability level (p value) =0.000, GFI =0.95 AGFI =0.93, CFI =0.98, RMR=.01, RMSEA=.05), indicating an indirect effect of transformational leadership on operational performance via Japanese style management. The effect of transformation leadership on operational performance was fully mediated by Japanese style management.
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