Although the results of this study seem promising, several limitations have to be made.
First, questions of endogeneity may be raised with regard to common source, common-method variance (Antonakis, Bendahan, Jacquart, & Lalive, 2010). To address these concerns, data were collected from three separate sources (HR executives, employees, and TMT members). However, as ratings on TMT behavioral integration and organizational innovation were obtained from the same source (TMT members), a potential bias due to raters’ consistency efforts cannot be ruled out.
Out of social desirability, managers might have reported inflated levels of TMT behavioral integration and organizational innovation, thereby impairing the accuracy and reliability of measures. Although it was tried to control for measurement error as best as possible by
findings by including objective measures where possible (e.g., for organizational innovation).
The measurement of TFL relied on ratings from direct followers. As ICC(2) values below the cutoff value indicated, there was considerable variation in the perception of leader’s TFL among followers. Possibly, the reliability of the TFL measure could be enhanced in future studies by incorporating ratings from multiple perspectives or external observers.
In order to discard the problem of omitted exogenous variables (Antonakis et al., 2010), various controls that were previously found to relate to the study’s focal variables were included in the analysis. However, it cannot be guaranteed that all relevant confounding variables were taken into account.
Another major limitation lies in the retrieval of variable ratings at only one point in time. In order to establish causality, the independent variable has to temporally precede the dependent variable. Thus, on the basis of the applied research design, it cannot be suspended that the actual direction of influence was reversed, in that for instance TMT TFL caused TMT behavioral integration. Future studies could greatly enhance the validity of the present findings and establish causality by applying a longitudinal research design with a substantial time lag between measurements of the exogenous and endogenous variables.
With regard to the sample used in this study, the generalizability of the results has to be restricted due to four reasons. First, all participating companies were located in Germany, reflecting an essentially German cultural environment. As the mechanisms of influence emanated by TFL may not – or not to the same extent – be universally valid, cross-cultural
validation of the findings seems indispensable. Second, participating companies were small to medium in size, ranging from 15 to 3,900 employees. Including larger companies in the sample is thus another task for future research. Third, although a total of 31,600 individuals was questioned, the sample size of 215 participating firms was relatively small compared to similar research on strategic management (see also Kunze et al., 2013), which is why replications based on larger samples should be conducted. Finally, both firms and individual respondents participated voluntarily in this study, instead of being randomly assigned. Thus, a potential self-selection and sampling bias may exist which could be addressed in future research by applying a quasi-experimental research design.
Apart from these limitations, several fields might prove fertile in future research. As was shown, CEO TFL effectuates a significant part of its influence on TMT TFL through TMT behavioral integration. However, there might be other mediators to this relation, such as TMT unity or organization-based self-esteem. Further investigation is needed to shed light on the underlying processes and mechanisms through which the influence of CEO TFL is transmitted.
The same holds true for potential moderators of these mechanisms. Somewhat contradictory, the proportion of women in TMTs was found to be negatively related to TMT TFL (see Table A7 in the appendix), while previous research on TFL antecedents showed that female leaders are more prone to perform TFL than their male counterparts. As top executives in this sample were predominantly male (85.4 %), it is possible that with a growing portion of women, gender stereotypes took effect and sub-group formation occurred. Accordingly, it is suggested that gender diversity as moderator of TFL dispersion in TMTs is examined in future studies.
Investigation of other possible moderators such as organizational change or industry type
study (see Table A7 in the appendix).
Additionally, research on leadership dispersion should not be limited to TFL, but also embrace other types of leadership. This would provide insights into whether the social mechanisms delineated in this work are generally effective – or specific to TFL.
Finally, with regard to TFL effects it is suggested that the separate modeling of CEO and TMT influences applied in this paper is adopted in future research in order to advance common knowledge on the channels through which TFL at the apex of an organization shapes outcomes of organizational interest.
7. Conclusion
This study illustrated how CEO TFL disperses in TMTs and how TMT members thereby come to perform TFL themselves. It was shown that TMT behavioral integration partially mediates the positive relation between CEO TFL and TMT TFL, and an integrated model of individual behavior was developed to explain TFL dispersion and more generally individual action in social context. With regard to TFL effects, it was demonstrated that TMT TFL positively impacts organizational innovation, and how the respective influence of CEO TFL is fully mediated by TMT TFL. With these findings, this paper contributes to research on antecedents and effects of TFL, leadership dispersion in TMTs, upper echelons theory, and individual behavior in social context in various ways, and hopefully provides new impetuses to future research in the respective fields.
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