Transformational Leadership Theory: Using Levels of Analysis to Determine Boundary Conditions

The purpose of this study was to refine understanding of transformational leadership theory by a specification and test of boundary conditions. Multiple levels of analysis (individual, dyad, and group) were used to identify conceptually and assess empirically the potential bounds on transformational leadership theory. Multi‐source data were collected from a sample of 105 salespersons and their 33 sales supervisors, and within and between analysis (WABA) procedures were conducted. Contrary to higher‐level (dyad, group) and cross‐level assertions in the literature, transformational leadership results were based solely on individual differences. That is, in this sales setting, transformational leadership theory was determined to be an individual‐level theory bounded by individuals' (superiors' and subordinates') perceptions and not holding at higher levels of analysis. Implications of the findings for future leadership research and practice are discussed.