Mediating Role of Change Capability in the Relationship Between Transformational Leadership and Organizational Performance: An Empirical Research

Figures & data

Figure 1 Proposed research model.

Table 1 The Standard Loading and Reliabilities of Measurement Models

Construct	Item	Loading	t-value	CR	AVE	Cα
Transformational leadership (TL)	4	–	–	0.82	0.53	0.82
	TL1	0.75***	12.5
	TL2	0.71***	11.7
	TL3	0.68***	11.2
	TL4	0.77***	12.6
Innovative culture (IC)	4	–	–	0.91	0.73	0.91
	IC1	0.88***	22.5
	IC2	0.80***	18.9
	IC3	0.91***	22.6
	IC4	0.81***	19.0
Capable champions (CC)	4	–	–	0.93	0.77	0.93
	CC1	0.82***	20.2
	CC2	0.91***	26.1
	CC3	0.82***	26.2
	CC4	0.86***	22.3
Operational performance (OP)	5	–	–	0.95	0.79	0.95
	OP1	0.85***	26.6
	OP2	0.89***	19.3
	OP3	0.94***	23.9
	OP4	0.85***	26.7
	OP5	0.94***	24.0
Financial performance (FP)	6	–	–	0.94	0.76	0.94
	FP1	0.93***	28.3
	FP2	0.82***	18.1
	FP3	0.81***	21.1
	FP4	0.81***	20.9
	FP5	0.90***	23.5
	FP6	0.91***	28.2

Notes: Cα ≥0.7; composite reliability ≥0.7; average variances extracted ≥0.5; ***p<0.001.

Table 2 The Means, Standard Deviation, and Correlations Among the Latent Factors

Constructs	TL	IC	CC	OP	FP
Transformational leadership (TL)	0.73
Innovation culture (IC)	0.62***	0.85
Capable champions (CC)	0.64***	0.51***	0.88
Operational performance (OP)	0.66***	0.61***	0.68***	0.89
Financial performance (FP)	0.69***	0.59***	0.64***	0.63***	0.87
Mean	3.44	3.54	3.52	3.70	3.76
Standard deviation (SD)	0.52	0.59	0.66	0.62	0.58

Notes: Cα ≥0.7; CR ≥0.7; AVE ≥0.5; ***p<0.001; Diagonal elements (in bold) are the square root of the AVE.

Table 3 Overall Fit Index of the CFA Model

Fit Index	Scores	Recommended Threshold Value
Absolute fit measures:
Chi-square/df (CMIN/df)	1.568	≤2^a; ≤5^b
Goodness of fit index (GFI)	0.911	≥0.90^a; ≥0.80^b
Root mean square error of approximation (RMSEA)	0.044	≤0.08^a; ≤0.10^b
Incremental fit measures:
Normed fit index (NFI)	0.949	≥0.90^a
Adjusted goodness of fit index (AGFI)	0.886	≥0.90^a; ≥0.80^b
Comparative fit index (CFI)	0.981	≥0.90^a

Note: ^aAcceptability: acceptable; ^bAcceptability: marginal.

Table 4 Structural Model Results

Hypotheses	Effects	Estimate	t-value	Results
H1a: Transformational leadership → Innovation culture	+	0.646***	9.83	Supported
H1b: Transformational leadership → Capable champions	+	0.665***	11.1	Supported
H2a: Transformational leadership → Operational performance	+	0.277***	3.35	Supported
H2b: Transformational leadership → Financial performance	+	0.413***	4.82	Supported
H3a: Innovation culture → Operational performance	+	0.254***	4.18	Supported
H3b: Innovation culture → Financial performance	+	0.195***	3.21	Supported
H3c: CC → Operational performance	+	0.377***	5.98	Supported
H3d: CC → Financial performance	+	0.277***	4.43	Supported
Control variables	Effect	Estimate	t-value	Results
Firm size → Operational performance	−	−0.009	−0.22	Unsupported
Firm size → Financial performance	−	−0.023	−0.56	Unsupported

Note: ***p<0.001 level.

Table 5 The Confidence Intervals of Indirect Influences

Path	Direct Effects	Indirect Effects	Total Effects	Bias-Corrected Confidence Intervals
				LLCI	ULCI
TL→IC, CC→OP	0.277***	0.415***	0.692***	0.311	0.535
TL→IC, CC→FP	0.413***	0.310***	0.723***	0.197	0.435

Note: ***p<0.001 level.

Figure 2 The findings of the hypotheses in the structural model.

Note: ***p<0.001.