(The Mediating Role of Leader-Member Exchange in the Effect of Transformational Leadership on Social Capital)

Abstract

Purpose – The effect of transformational leadership on the shaping of social capital as an organizational resource and the mediating role of the leader-member exchange in this effect is presented based on the theory of social change. Design/methodology/approach – The field study data obtained by survey method were used for hypothesis testing. Linear regression and mediation with bootstrap tests are used to analyse the data obtained from 504 participants. Findings – The results show that transformational leadership affects social capital, and leadermember exchange plays a partial mediator role between transformational leadership and social capital. These results support the hypothesis. Discussion – By emphasizing the relational aspect of transformational leadership, this study argues that it is an alternative force that influences important concepts such as social capital and leader-member exchange. Followers perceive transformational leaders as reliable and supportive. This perception creates a sense of psychological comfort and security that enables the followers to better adapt to the organization. Thus, in the framework of shared vision, followers work in cooperation with other followers in order to reach the common goals determined by the leader. This harmony, and working in collaboration around shared leadership lead to a strong social capital structure by causing positive social changes such as knowledge.