Balancing Empowerment and Control: The Combined Roles of Team Leadership and Performance Evaluations in Creative Teams

38 Pages Posted: 16 Aug 2016 Last revised: 24 Apr 2018

Date Written: December 6, 2016

Abstract

In this paper we analyze the joint effect of transformational team leadership and performance evaluations based on pre-set measures (objective performance evaluations, OPE) in generating creative team performance. In explaining this effect, we argue for a key role of team potency, i.e. the belief of team members in the team’s collective capabilities for being successful. We propose that the effect of OPE on team potency (which itself is considered a main driver of creative performance) depends on whether OPE is combined with a transformational leadership style or not. While the team leader’s use of OPE has a negative main effect on team potency, this negative effect is offset when the team leader exhibits a transformational leadership style. We test the proposed model with data collected from 101 teams and 372 individuals in 53 marketing agencies.

Keywords: team creative performance; transformational leadership; performance evaluation; team potency

JEL Classification: M52

Suggested Citation

Speckbacher, Gerhard and Klein, Aleksandra, Balancing Empowerment and Control: The Combined Roles of Team Leadership and Performance Evaluations in Creative Teams (December 6, 2016). AAA 2017 Management Accounting Section (MAS) Meeting, Available at SSRN: https://ssrn.com/abstract=2824092 or http://dx.doi.org/10.2139/ssrn.2824092

Gerhard Speckbacher (Contact Author)

WU Vienna ( email )

Welthandelsplatz 1
Wien, 1020
Austria

Aleksandra Klein

WU Vienna ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

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