Effects of CEO Transformational and Entrepreneurial Leadership on Employee Satisfaction: Mediating Role of Supportive Culture

Abstract

The purpose of this research is to examine the effects of CEO transformational leadership and CEO entrepreneurial leadership on employee satisfaction. Also, we paid attention to the mediating role of supportive culture among the relationships. The effects of the two CEO leadership styles have been reported to be positive to firm performance and employee outcomes, however they have different attributes. According to previous literature, leader’s entrepreneurial attitude or behavior emphasizing innovativeness, risk taking, and competitive aggressiveness could generate some stress or pressure to employees. Thus, we scrutinize the mechanism among the two CEO leadership styles, supportive culture, and employee satisfaction. The results showed that CEO transformational leadership had a positive effect on employee satisfaction directly as well as a positive effect on employee satisfaction through supportive culture indirectly. On the other hand, CEO entrepreneurial leadership had a positive effect on employee satisfaction through supportive culture indirectly while, there was no significant relationship between entrepreneurial leadership and employee satisfaction. Our research findings provide informative theoretical and managerial implications.