Perceptions of CEO Leadership Style and Professional Work Autonomy of Subordinates in Taiwanese Investment Companies

Date of Degree

8-2005

Document Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Program

Education

Advisor

Absael Antelo

Advisor

Richard L. Henderson

Advisor

Dorothy Ettling

Advisor

Joseph Eyles

Abstract

This research investigated the relationship between the perceptions of CEO leadership style and professional work autonomy of 356 subordinates in 37 Taiwanese investment companies. The foreign investment companies overwhelmingly penetrated Taiwanese investment market after Taiwan joined the World Trade Organization. However, foreign investment companies faced Taiwanese cultural differentiation and an unfamiliar market. Attracting and retaining professionals are critical issues for organizational efficacy in knowledge-intensive companies. Organizational efficacy is closely connected to appropriate application of leadership. Hence, the leaders of Taiwanese investment companies must recognize the significance of leadership to attract and retain professionals during this transition time. This research investigated the relationship between the perceptions of CEO leadership style and professional work autonomy of 356 subordinates in 37 Taiwanese investment companies. Various demographic factors were also examined for their relationships with the dependent variable of this research. Two survey instruments were used: the President Leadership Behavior Questionnaire (PLBQ) and Work Autonomy Scales (WAS). Because the PLBQ was modified, a pilot test of 43 conveniently selected subjects was conducted to ensure it was clear to interviewees; Cronbach’s alpha was used to verify reliability. To measure overall data quality, composite reliability, and convergent and discriminant validities were reported. Descriptive statistics: means, standard deviations, frequencies and percentages, and inferential statistics: LISREL, one-way ANOVAs, Scheffe tests, and t-test, with a significance level of 0.05 were included for data analyses. Initiating structure behavior resulted in low work autonomy. High consideration and high initiating structure led to the highest empowerment in work autonomy, while low consideration and low initiating structure connected to the lowest empowerment. Gender, level of education, and marital status influenced work autonomy. Competitive pressure has caused more professional demand to replace consideration of age and tenure. Initiating structure behavior may accompany dissatisfaction, and hamper development of clan control. Stereotypes based on gender and marital status may lead to dissatisfaction as well. An ideal leader of a Taiwanese investment company could exert high initiating structure and high consideration behaviors to create organizational efficacy; empowering followers in a learning organization helps them achieve organizational goals in a dynamic environment for organizational development.

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