Influence of Leadership Styles (Transformational/ Paradoxical Leadership) on Supply Chain Collaboration; Mediating Role of Trust

Abstract

This paper focuses on how transformational leadership and paradoxical leadership affect supply chain collaboration, and trust is the mediating factor. With supply chains functioning in more complex, dynamic, and interdependent environments, it has become necessary to comprehend the behavioral basis underlying collaborative behaviour in order to succeed as an organization. Quantitative research design was used and data was gathered through employees who work in the different supply chain functions. These findings reveal that both transformational and paradoxical leadership contribute in a considerable way to improving supply chain collaboration through the encouragement of openness, communication and decision-making that is coordinated. The results also show that trust is an important mediating variable that enhances leadership on collaborative practices. Leaders who are transparent, fair, inspirational, and make balanced decisions instill greater confidence on employees leading to enhancement of inter-organizational relationships. Trust was also identified to mediate the impacts of the two leadership styles somewhat meaning that leadership does affect collaboration both directly and indirectly. In general, the research exhibits the significance of the relational leadership behavior and trust-based mechanisms in facilitating such an effective collaboration in the supply chain. The lessons provide valuable advice to companies interested in improving the level of integration in their operations and enabling partnerships in multi-level networks of the supply chain.