Synthesis between leadership behaviours and principal–agent theory

Abstract

‘Initiating structure’ and ‘consideration’ have long stood as broad dimensions of leadership behaviour. Recent theory and meta-analyses suggest a continued role for such constructs. However, this study asserts that initiating structure is best composed of two sub-constructs, namely a leadership focus on directing and controlling subordinate task behaviours versus a focus on outcomes. Ignoring this dualism has previously rendered initiating structure too broad a construct to facilitate meaningful hypotheses, and statistically the weaker of the constructs. This study uses principal–agent theory to support this split in theory, and presents initial structural equation modelling (SEM) tests to illustrate the superiority of a two-part initiating structure construct. Thereafter, a large number of research propositions are explored using the new dimensions, as well as two interesting case contexts. This respecification allows for propositions more in line with prior empirical findings, and finer examinations of relationships.

Key words: initiating structure, consideration, agency theory, principal–agent theory