Structural equation modeling for impacts of transactional leadership styles on project performance
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Construction firms are intensifying effort at strengthening the construction process through the engagement of professionals with sound management and leadership acumen against only technical ability. This study, therefore determines how transactional style of leadership impacts project outcomes (successful delivery or otherwise) in Nigerian construction sector. Though a quantitative survey method, 5-point Likert ordinal-scale cross sectional questionnaires were used to elicit the respondents’ response. Valid feedback from 975 participants out of 1233 administered on project managers, project team members (only construction professionals) and firms’ supervisors with response rate of 79.8% was initially analyzed descriptively, then inferentially using Structural Equation Modeling (SEM) approach. Results show a negative direct effect of passive management by exception of transactional style on deliveries of Nigerian projects. SEM output with squared multiple correlation of 0.219 indicates that passive factors of transactional style accounted for 21.9% of the variance in success indices of projects. This therefore, implies that passive management factors of transactional style reduce project performance by 21.9%. The study establishes that passive factors of transactional style exert direct negative effects on project performance in Nigeria. The survey’s peculiarity enables the project managers to filter through and improve upon the advantageous aspect of transactional leadership already in use towards successful project outcomes. Engaging SEM approach to identify the transactional variables that exert negative effects on project outcomes takes the lead in leadership aspect of management discourse as previous researcher only mentioned the effect on worker’s performance. Therefore, thus enriching literature on project management in Nigeria and globally.
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