CHAPTER THREE

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 Chapter 3
This chapter proposes the theoretical model relating three types of Leadership
Behaviours (LB): Task-Oriented, People Oriented, and Change Oriented Behaviours.
The behaviours are identified based on Michigan Studies and recent literature. The
mediating role of Emotional Intelligence (EI) supported by the latest scholarly works,
and the for and against part of the EI discussed, too. The models of Sustained
Competitive Advantage (SCA) and its relation with LB process, organisational
innovation, and corporate performance. The moderating roles of Gender are identified
based on leadership dimensions explained in the literature review section. EI model of
leadership effectiveness is used to measure the whole leadership as process.
Organisational adaptability is considered an intermediate outcome towards SCA. While
the balanced scorecard, VRIO (Value, Rareness, Imitability, Organisation), CVA
Competency Value Analysis), AVAC (Activities, Value, Appropriatability, and Change)
methods adopted for measuring corporate performance. A set of hypotheses is
formulated to establish the relationship between TOB, POB, and COB with the EI and
SCA. Another hypothesis is proposed to relate EI and organisational performance. The
last hypothesis is developed to set up the relationship between corporate creativity and
firm performance. All the hypotheses are formulated in order for testing the stated
relationship among the variables empirically.

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 Development of Research Framework

3.1 The Variables

The objective of this study is to construct a model of leadership behaviours that depicts
all of the relationships between Leadership Behaviours (LB), Task-Oriented Behaviour
(TOB), People Oriented Behaviour (POB), Change Oriented Behaviour (COB) with
Emotional Intelligence (EI) and Gender (GDR) leading to Sustained Competitive
Advantage (SCA). The empirical research model that illustrates the relationship among
variables is below in Figure 3.1.

Figure 3.1: The Research Model (Source: Author)

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3.1.1 Leadership Behaviours
In this research Leadership Behaviours (LB) that is used Task-Oriented Behaviour
(TOB), People Oriented Behaviour (POB), Change Oriented Behaviours (COB)
(Manual, 1997; Beer and Nohria, 2000; Adair et al., 2009; Kouzes, J and Posner, 2012;
Afsar, Badir and Saeed, 2014; Ünsar, 2014; University of Cambridge Institute for
Sustainability Leadership, 2017; Sinar et al., 2018). Emotional Intelligence (EI) is linked
with LB and mediate in the process of achieving Sustained Competitive Advantage
(SCA) (Gluck, Kaufman and Walleck, 1980; Cherniss, 2000; Daniel Goleman, 2000;
Goleman, 2000; Goleman and Cary Cherniss, 2001; Boyatzis and Boyatzis, 2008; Taner
and Aysen, 2013; Harvard Business Review, 2014; Porter, 2015; Walter, Cole and
Humphrey, 2018).
3.1.2 Emotional Intelligence

Figure 3.1.2 A resource-based view, linking (leader) emotional intelligence to

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Emotional Intelligence (EI) is not only a well-researched topic but also fueled some for
and against arguments. Mayer, Salovey, Caruso introduced Emotional Intelligence Test
(the MSCEIT) and wrote the book, “The Emotionally Intelligent Manager: How to
Develop and Use the Four Key Emotional Skills of Leadership (2004)”; and Daniel
Goleman’s wrote series of Classics, like Primal leadership: Unleashing the power of
emotional intelligence (2013), Focus: The hidden driver of excellence (2013),
Ecological intelligence: The hidden impacts of what we buy (2010). Social intelligence
and the biology of leadership (2008). Social intelligence (2007), Emotional intelligence:
Why it can matter more than IQ for the character, health and lifelong achievement
(1995), and wrote many articles in Harvard Business Review (HBR) and in other
scholarly Journals as well. The pieces kept on coming preaching for EI.

“Emotional Intelligence 2.0” (Travis Bradberry and Greaves, 2009), and Emotional
Competence Inventory (ECI) added a different dimension to the field but kept on
preaching for EI as a dominant factor for leadership. However, it is only Antonakis who
were against accepting concepts of EI and leadership. He replied: Why “emotional
intelligence” does not predict leadership effectiveness: A comment on Prati, Douglas,
Ferris, Ammeter, and Buckley (2003). He also wrote: Why “Emotional Intelligence”
will Not Predict Leadership Effectiveness Beyond IQ Or The “Big Five”: An Extension
And Rejoinder. Antonakis underlined and narrated contradictions and inconsistencies
which may cast doubt on the necessity of EI for understanding and predicting leadership
effectiveness. And the last doubt Antonakis had is: Does Leadership Need EI?

We have a task ahead to see who is more pertinent in the context of the RMG
Bangladesh?

3.1.3 Sustained Competitive Advantage

3.2 The Hypotheses

Based on the model set out above, the research will test the following hypotheses:

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H0 The null hypothesis: No leadership behaviour is positively correlated with the

competitive advantage of the leader's company.

3.2.1 Task-Oriented Behaviours

The human brain, divided into two main modes: one is the Default Mode Network

(DMN), and the other is Task Positive Network (TPN). Rest of the part is equipped

to think socially, meaning relations and people; evidence showed that emotional

intelligence and social intelligence linked to the parasympathetic nervous system

and sympathetic nervous system respectively (Boyatzis, Rochford and Taylor,

2015). Though this is an anatomy of the brain, part of neuroscience and cognitive

behavioural science, it shows by default that our mind is equipped to think on

active and passive tasks, maintain relations, feel emotionally and socially. Social

systems of this brains’ function are known as mirror neurons which are shaped by

experiences (Chapman, 2012; Rochford, 2012). In a simulated context, Task-

oriented leaders influenced higher group efficacy and positivism among members

of the group. In contrast, relationship-oriented leaders effected greater cohesion

between the group’s team members (Navy Seal)(Tabernero et al., 2009).

H1 Task-Oriented leadership behaviour is most positively correlated with the

competitive advantage of the leader's company.

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3.2.2 People Oriented Behaviours

Before we discuss People-Oriented (Leadership) Behaviour, we see the theoretical

evolution of measuring Competitive Advantages:

A. SWOT Analysis (the early 1960s). Stanford University's Albert Humphrey led

a research project in the 1960s-1970s and Strengths, Weaknesses, Opportunities

and Threats analysis (SWOT) was to have originated from his "Stakeholders

Concept and SWOT Analysis" (Friesner, 2009),

B. PEST (1967) Political, Economic, Social and Technical factors are affecting a

business or organisation from the environment in which it operates. Harvard

professor Francis Aguilar is thought to be the creator of PEST Analysis.

C. Growth/Share matrix (the late 1960s)

D. GE/McKinsey matrix (the late 1960s)

E. Porter’s Five Forces (1979/1980)

F. Business systems (1980)-People

G. Value chain (1985)- Value Chain Analysis

H. Value configurations (1998)

I. The balanced scorecard (1992)- People

J. VRIO (1997)- Value, Rarity, Imitability and Organisation (people).

K. VIDE (1998)- The VIDE (Value, Imitability, Differentiability, and

Extendability) analysis

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L. S3PE Framework (1998)- Strategy, Structure, Systems, People, and

Environment.

M. 4Ps (marketing, the 1960s)- we have 4Ps (Product, Prices, Placement,

Promotion, and

N. 5Ps (Product, Prices, Placement, Promotion, and People)

O. AVAC (2008)- (Activities, Value, Appropriability, and Change)

The drivers of sustainable competitive advantage as selected by Afua (2009): (1)

industry and macroenvironmental factors (external factors), (2) firm-specific

factors, which include both resource-based factors and position-based factors, (3)

change, and (4) link to profitability. Since the ultimate goal of most firms is to have

a sustainable competitive advantage, therefore firm-specific factors can be

resource-based or position-based, and change plays a critical role in the inability of

firms to sustain competitive advantages (Allan Afuah, 2009). The theories of

Resource-Based View (RBV), Market Based View (MBV), Value-Based View

(VBV), Competency-Based View (CBV), Knowledge-Based View (KBV),

Competency-Based View (CBV) is all related to “People” as the saying goes

–“Take care of your people, people will take care of your business”.

Leaders ‘influence their working environment’, to a greater extent than would be

Empowerment involves the enablement of workers in the setting of their own work-

related goals, the ability to make their own decisions and to solve problems within

their given sphere of responsibility and authority (Pheng, 1999). Leaders can

empower employees in a variety of ways, from allowing them to participate in

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decision-making processes, giving them autonomy and the freedom to decide how

best to carry out job tasks (job decision latitude) etc. Leaders also help followers

expressing confidence in employees abilities and their expected performance on the

job. Leaders sometimes need to use position power in a diplomatic way meaning

not always pulling rank over employees and by limiting use of coercive force or

manipulation (Luthans, 1992).

H2 People-oriented leadership behaviour is most positively correlated with the

competitive advantage of the leader's company.

3.2.3 Change Oriented Behaviours

Human nature resists change. RMG Leaders view is that their team becoming

“paralysed by the seemingly endless possibilities” of the future. They are not alone.

Change is occurring at a fast-paced difficult to cope, simultaneously on different

fronts. Changes accelerating quickly and creating complexity and uncertainty that

even the most confident leader question whether they are prepared for the

revolution awaiting. The word that VUCA has become a trendy managerial

acronym: VUCA, short for volatility, uncertainty, complexity, and ambiguity, and a

catchall for “Hey, it’s crazy out there!”

Businesses becoming history, like KODAK, Fuji Film, and dot.com virtual online

stores booming, cloud businesses thriving and Nokia falling behind to catch up with

the technological changes. In apparel industries, the 3D designing and development,

not only ask for adaptation to technological change but also demands learning new

skills, too.

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H3 Change Oriented leadership behaviours most positively correlated with the

competitive advantage of the leader's company.

Boyatzis (2013) argues that when humans are within the positive Emotional

Attractor, they are “more perceptually open and correct in perceptions of others”

(Boyatzis et al.1978; Boyatzis et al., 2012; Fredrickson & Branigan, 2005),

H4 Emotional Intelligence is positively related to SCA.

H5 Task-Oriented leadership behaviour is most positively related to EI and

CA.

H6 People Oriented leadership behaviour is most positively related to EI and

CA.

H7 Change Oriented leadership behaviour is most positively related to EI and

CA.

H8 Gender significantly modifies/change the degree to which TOB, POB, and

COB (leadership behaviours) are positively correlated with EI and competitive

advantage of the leader's company.

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 Leadership
Behaviours

Gende
Task Oriented r
Behaviours (TOB)
3.3 Conclusion

People Oriented SCA

Change Oriented
Behaviours (COB)

Refined Model : LB (POB, TOB, COB) + EI > SCA

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