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provide benefits to manufacturers and owners who wish to sustain their social performance and should further develop training programs to foster the effectiveness of
leadership style in their firms.
The findings also indicate that the customer must be aware of the mindsets
and practices of the South Asian exporting firms and incorporate and adapt social
issues that reflect local institutional environment into their contracts. They also offer
implications for the policymakers and institutional officials. Policymakers should
endeavour to build a legal system on social issues to support manufacturing industries in these countries in collaboration with international institutions. However,
managers should be aware that transactional and relational governance have their
roles in enhancing sustainability outcomes. Managers could rely more on transactional leader’s styles/in transactional governance. Eventually, foreign managers
may be able to safeguard the relationship. When both foreign partners/managers do
not know each other well, transactional governance can be good in South Asia for
achieving positive social sustainability outcomes.
Further research is needed to identify the characteristics of leadership style that
enhance social performance. Another potential future research area is the use of
attention-based view on human resource management and relationship marketing
domain. Accordingly, when top management signals their attention to relational
activities in inter-firm governance mechanism, they highlight the importance of these
activities and shape organisational goals. The sample size is small as data were
collected from single respondents, future studies might find it beneficial to seek a
response from multiple respondents per firm. A future research study that includes
data collection from both sides would enable cross-validation of the effects of governance mechanism. Thus future research might consider replicating this study in other
Asian countries. This comparison would facilitate understanding the ways in which
leadership impacts social sustainability performance in various cultural contexts and
identifying ways in which specific country culture influences governance mechanism
and leadership behavioural emotions and intentions.
Appendix 1
Constructs and measures
Construct
Items
Measures
Transactional governance
(TG)
“To what degree do you agree or disagree with the following
statements
(1—Strongly disagree, 2—disagree, 3—Somewhat disagree,
4—Neither agree nor disagree, 5—Somewhat agree, 6—Agree,
7—Strongly agree)”
(continued)
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