A Tool for Measuring Institutional Leadership and Its Implementation for the Evaluation of Organizational Leadership Capability

Kurmet Kivipõld () and Maaja Vadi ()
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Kurmet Kivipõld: University of Tartu, Faculty of Economics and Business Administration and Lääne-Viru School of Applied Sciences
Maaja Vadi: University of Tartu, Faculty of Economics and Business Administration

No 172, Working Papers from School of Economics and Business Administration, Tallinn University of Technology

Abstract: The concept of Institutional Leadership opens up some essential aspects of organizational leadership capability that could be defined as the collective ability of leadership to detect and cope with changes in the external environment by maintaining the primary goals of the organization. The aim of this paper is to design a tool to measure institutional leadership and evaluate organizational leadership capability. Leadership came under greater focus within the institutional context at the end of the 1990s. On the one hand, this arose from the necessity to transfer leadership capabilities into the strategic assets of institutions, on the other, it is due to other approaches to management (i.e. cascading leadership, intellectual capital, organizational learning, knowledge management and self-organizing systems). The thing that unites all these approaches is their attempt to improve an organization's ability to adapt in a complex environment, and it is proposed that the ability to adapt is based on the knowledge of organizational members and to the extent that this knowledge is embedded in the pattern of organizational structure. Therefore, institutional leadership is an important issue for studying and improving the transformation of knowledge in the structure of an organization. A total of 445 respondents from six Estonian organizations participated by completing a questionnaire about institutional leadership. Next, a quantitative analysis was performed and sets of factors obtained from a partial least squares (PLS) regression and Cronbach alpha test. Finally, the pattern of individual items (statements) within each of the factors was identified and the results which indicate organizational leadership capability were plotted.

Keywords: leadership; institutional leadership; intellectual capital; knowledge management; organizational learning; organizational structure; self-organizing systems; strategic management (search for similar items in EconPapers)
JEL-codes: M10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-cse and nep-knm
Date: 2008
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Published in Working Papers in Economics.School of Economics and Business Administration,Tallinn University of Technology (TUTWPE), Pages 55-71

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