The Impact of Dual-Level Transformational Leadership on Team Performance and Work Motivation in the Hospitality Industry: A Longitudinal Study in China

1. Background Hospitality organisations commonly rely on teams as the fundamental unit for achieving higher organisational effectiveness and improved management (Kim & Jeong, 2018). This trend presents new challenges for leaders, as they are expected to motivate individual employees while enhancing team performance concurrently (Chen et al., 2007). Dual-level transformational leadership (TFL), which distinguishes between team- and individual-focused leader behaviours, is well-suited to address this challenge and offers a fresh perspective on understanding leadership behaviour (Kark & Shamir, 2013). Although the dual-level TFL model has been extensively studied in various contexts such as high-tech organisations (e.g., Cai et al., 2017) and universities (e.g., Li et al., 2016), its application in the hospitality context has received limited attention (Yang et al., 2021). This PhD thesis aims to apply the dual-level TFL model in the hospitality context, utilising a longitudinal approach to uncover the distinct mechanisms at both the team and individual levels. Moreover, the thesis incorporates cultural and gender perspectives to enrich the model and establish stronger links between the research and the industry's current state.

This PhD thesis is valuable to the industry because team performance and individual work motivation are mutually dependent (Karas & Williams, 2001; Latham & Locke, 2002). In other words, highly motivated team members are more likely to surpass performance expectations, leading to improved team performance, which, in turn, enhances individual work motivation. Therefore, understanding the indicators of team performance and individual work motivation will assist hospitality supervisors in establishing a virtuous cycle that balances high-performance teams with motivated individuals simultaneously. While previous studies in the hospitality industry have attempted to demonstrate the positive impact of dual-level TFL on team and individual service innovation (Yang et al., 2021; Yang, 2021), few studies have investigated the relationship between dual-level TFL, team performance, and work motivation in the hospitality industry. This PhD thesis aims to bridge this gap by examining the dual effects of TFL. Moreover, this study will incorporate culture and gender perspectives in the research framework. From a cultural standpoint, the mediating role of collective culture in linking team-focused TFL and team performance will be explored. Collectivism, rooted in Confucianism, serves as the philosophical foundation for many East Asian societies, particularly Chinese societies, which are often regarded as exemplars of collectivist culture. Previous research by Jung and Avolio (1998) proposed that Asian Americans would exhibit more positive responses to TFL compared to Caucasian Americans. However, further studies are needed to validate this hypothesis. Consequently, the dual-level TFL model will be investigated in China to examine the cultural impacts of collectivism.

In addition, the gender perspective will address the gender differences in Emotional Intelligence (EI) and shed light on the same-gender role modelling effect within the hospitality industry. Notably, female employees hold only 25% of executive-level positions in publicly traded restaurants (McKinsey and Company, 2019), 23% in tourism (World Tourism Organisation, 2019), 13% in hotels, and a mere 12% of all leadership positions (AHLEF, 2020). Understanding the gender-related tendencies of hospitality supervisors will be beneficial for organisations when it comes to hiring and assigning work. Furthermore, it will provide supporting evidence to help organisations achieve gender-diverse management teams, which have been shown to outperform teams lacking gender diversity (Menicucci et al., 2019).

2. Brief literature review The TFL style has garnered significant attention in the hospitality industry, surpassing other leadership styles, because of its impact on employees' attitudes and behaviours (Gui et al., 2020). Existing studies highlight the importance of the dual-level TFL, considering the distinct indicators of team and individual performance (Chen, 2005; Dong et al., 2017). Klein and Kozlowski (2000) emphasise that team-focused TFL involves leaders treating their followers equally, with equal idealised influence and inspirational motivation. On the other hand, individual-focused TFL entails leaders focusing on individual followers rather than the team as a whole, resulting in personalised intellectual motivation and consideration. The dimensions of individual-focused TFL encompass: (1) communicating high expectation, (2) follower development, (3) intellectual stimulation, and (4) personal recognition. The dimensions of team-focused TFL include (1) emphasising group identity, (2) communicating group vision, and (3) group-building. Further empirical investigations have demonstrated construct validity, indicating that these two types of leadership behaviours can have divergent or even opposing effects on organisational outcomes at the individual (Wang & Howell, 2012), team (Wu et al., 2010), and firm levels (Zhang et al., 2015) due to their distinct dimensions.

Lu and Li (2019) observed that team-focused TFL behaviour enhances team efficacy, thereby facilitating the team process and leading to high team performance. This finding is consistent with two military studies that also demonstrated a positive relationship between TFL and team performance (Lim & Ployhart, 2004; Bass et al., 2003). Team-focused leaders, by emphasising group identity, can foster a cohesive team with shared values. Schaubroeck et al. (2007) expanded on this concept by investigating the moderating role of collectivism in a large multinational bank in Hong Kong. Given the tendency for Asian countries to exhibit high levels of collectivism, the researchers hypothesised that Asian Americans would respond more favourably to TFL compared to Caucasian Americans (Jung & Avolio, 1998).

Zaccaro et al. (2008) argue that various leadership styles can have different effects on work motivation. The skills of 'communicating high expectations' and 'follower development' within the individual-focused TFL approach can be crucial for motivating employees. However, there is a lack of research on its specific relationship with work motivation, particularly in the context of the hospitality industry. Putra and Cho (2017) contend that work motivation holds significance for hospitality workers due to the nature of their work. Morkeviciute et al. (2019) note that work motivation is heightened when employees perceive their leader as engaging in individual-focused TFL. Nevertheless, these studies have failed to explore the dynamic interplay between individual-focused TFL and individual work motivation.

Individual-focused TFL highlights the emotional and psychological exchange between leaders and followers (Rafferty & Griffin, 2004). The EI has consistently been recognised as a crucial set of managerial skills (O’Boyle et al., 2011). According to White and Stahl (2016), leaders with higher emotional intelligence can enhance their followers' work motivation through effective communication of high expectations and follower development. While some studies suggest that gender does not affect EI (e.g., Shehzad & Mahmood, 2013), others favour males (e.g., Ahmad et al., 2009), while most studies indicate that females tend to have higher emotional intelligence (e.g., Kant, 2019). Supporting the latter, experimental findings from a study demonstrate that the relationship between TFL and employee performance is influenced by gender (Dastance, 2020).

Trust plays a crucial role in the ability of leaders to motivate their followers (Zhu, 2014). Previous research has indicated that when employees have trust in their supervisors, it can result in increased motivation (Schaubroeck et al., 2013). This is because a trusted leader has the ability to indirectly influence the behaviour and performance of their employees (Ferrin & Dirks, 2002). Furthermore, several studies have shown that leaders with higher emotional intelligence (EI) are more adept at establishing a strong trust-based relationship with their followers, which in turn leads to enhanced work motivation (Huggins et al., 2016). Additionally, Sheehan (1999) suggests that effective emotional management can foster trust, loyalty, and commitment within a team.

At the individual level, motivation is central to the main outcomes of role modelling (Morgenroth et al. 2015). According to Bandura (1997), when a follower perceives a leader as a role model, the leader's success enhances the follower's confidence in achieving similar success. Specifically, the leader can influence the follower's values, encouraging the adoption of new goals and increasing motivation (Thrash & Elliot, 2004). From a gender perspective, previous studies suggest that, in male-dominated contexts such as sports (e.g., Midgley et al., 2021) and STEM fields (e.g., Olsson & Martiny, 2018), same-gender role models have a greater motivating effect on females than different-gender role models. Dasgupta's (2011) stereotype inoculation model explains how role models can help minority group members develop immunity against negative stereotypes.

3. Research question As noted in the literature review, there is limited research on the impact of dual-level TFL on team performance and work motivation in the hospitality industry. This PhD thesis aims to fill this gap by exploring the following questions: 1. How does team-focused TFL relate to team performance? 2. How does individual-focused TFL relate to individual work motivation? Additionally, this study examines the following inquiries: 3. How does collectivistic culture influence the relationship between team-focused TFL and team performance? 4. How do emotional intelligence, trust, and role modelling influence the relationship between individual-focused TFL and individual work motivation? To examine the potential gender impacts, this research investigates the following question: 5. Does gender impact the effectiveness of role modelling and the relationship between emotional intelligence, individual-focused TFL, and work motivation?

4. Research design The thesis will empirically employ quantitative methods to examine the research questions. A multilevel model (see Fig. 1) will be utilised, and data will be collected from supervisors and employees working in restaurants and hotels in Shanghai, China.