The effects of transformational leadership on multilevel marketing distributors at Amway company
Abstract
This research is conducted with the purpose of examining the effect of
transformational leadship on Multilevel-marketing distributors at Amway company.
Factors chosen in the study contain transformational leadership, unit cohesion, job
satisfaction, higher-order purpose, effort and performance. Structural equation
modeling (SEM) is applied in order to test hypotheses in this study. The results verify
that transformational leadership has positive effect on job satisfaction, higher-order
purpose and unit cohesion, while rejects the relationship between higher-order
purpose and the effort, and is able to prove that effort is affected by unit cohesion,
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which cannot be demonstrated in original research. The study suggests that sponsors
should put more consideration in their own transformational leadership skill. Even
higher-order purpose does not have direct effect on effort, it still does indirectly
through unit cohesion. Therefore, sponsors should create many teamwork activities as
well as home working envrionment to guarantee that recruits can have the feeling of
being with family, then in turn, that feeling will become a key to motivate their
greater effort in work.