Deployment of Sustainable Development Framework …
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Thus, the transactional leader is better placed to carry on bargaining and framing
the terms of social initiatives in a way that improves the inter-firm relationship,
influencing such behaviours would probably increase social performance outcomes.
It argues that transactional leadership style is an integral part for improving social
sustainability performance. Our findings reaffirm previous findings that transactional
leadership (TRN) style is important in realising effective partnership among different
actors in cross border-relationships. Transactional leadership styles are important in
improving and promoting social sustainability. This research provides new insights
concerning transactional leadership behaviours in a supply chain process through
which it impacts sustainability outcomes.
Implications and Future Research Direction
The study contributes to theory and research in leadership by arguing that transactional leadership behaviour is effective because it helps in selecting adequate active
and passive behaviours that appropriately address the needs of the supply chain partners. First, we address calls for more research intended to find out whether a focal
company leadership drives changes in supplier development (Morali and Searcy
2013). Our theorising suggests that transactional style leaders respond to problems
as they arise and management by exception serves as a critical tool for inter-firm
governance mechanism (RG). That, in turn, allows encouraging suppliers to achieve
standards and implement sustainability practices. Second, transactional leadership
should involve the effectiveness of inter-firm governance. The export-manufacturing
firms in developing countries, who are interested in improving social sustainability
performance, should use a moderate level of transactional governance and rely
heavily on transactional leadership to manage and control the supply chain relationship. When both foreign partners/managers do not know each other well, transactional governance can be advantageous for achieving positive social sustainability
outcomes.
The findings of the study enforced the need to achieve SDGs in the context of
export manufacturing firms by using the flair contract governance and transactional
leadership style. The following are policy implications in achieving SDGs in the
context of export manufacturing firms, that is, the manufacturing industry in Pakistan
severely affected by a lack of trust from the buyers. Realizing the importance of
inter-firm relationship, export manufacturers should work hard to combat contract
ineffectiveness by using transactional leadership behaviours and promoting contract
governance. It is evident that a buyer–supplier relationship improves social performance. Hence it is imperative to promote transactional leadership behaviour that
improves the buyer–supplier relationship and helps in improving health, safety and
labor standards in a way to sustain social performance. Thus, the executive needs
to provide training and development opportunities to their managerial staff in developing transactional leadership behaviours and sustainability orientations. Managers
should explicitly model the relationship and consider their interdependency to gain
the full picture of how they both work together. The findings of the study can also
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