Leadership style and organizational innovativeness drive motor carriers toward sustained performance

Purpose The purpose of this study is to examine the complex relationships between transformational leadership, organizational innovativeness, and motor carrier performance. Design/methodology/approach A covariance‐based structural equation model was developed, tested and validated to explain the effect of leadership style and innovativeness on motor carrier performance. The authors’ hypotheses were tested using responses from 158 North American motor carriers. Findings The results support a direct as well as an indirect positive relationship between transformational leadership and organizational performance. Through the theoretical lens of dynamic capabilities theory, the results indicate that leaders motivate organizational change based on their own idiosyncrasies and perceptions of the environment. Research limitations/implications This research was limited by its focus on the motor carrier industry and may limit the generalizability of the findings. While the sample of motor carriers was selected at random, the individuals within each of the organizations were purposively selected based on their positions. Practical implications The results indicate that the proactive leader who makes calculated changes is likely to chart a course towards enhanced organizational innovativeness and performance that may provide the firm with a sustained competitive advantage. Originality/value This is one of the few works investigating leadership style and innovativeness in the motor carrier industry.