Transactional leadership and dynamic capabilities: the mediating effect of regulatory focus

Purpose The mechanism of leadership’s impact on dynamic capabilities has aroused widespread interest, but few studies focus on transactional leadership, especially empirical research by micro foundations in the R&D departments from collaborative innovation alliances. The purpose of this paper is to investigate how the mechanism of transactional leadership affects dynamic capabilities based on the mediating effect of regulatory focus. Design/methodology/approach In order to better illustrate the role of transactional leadership on dynamic capabilities, the authors introduced regulatory focus as a mediator based on previous research. A sample of 245 dyads comprised of full-time employees and their immediate supervisors was collected from the innovation teams of industry-university alliances through questionnaires in China and analyzed via hierarchical regression method. Non-response bias and endogeneity testing were also conducted to confirm the validity of the findings. Findings Contingency-reward behavior promotes the development of employee sensing and seizing capability. Management-by-exception promotes the development of employee reconfiguration capability. Promotion focus positively mediates the relationship between contingency-reward and sensing-seizing capability. Prevention focus positively mediates the relationship between management-by-exception and sensing-seizing capability. In addition, management-by-exception is also positively related to sensing capability and promotion focus is positively related to reconfiguration capability. Originality/value This paper confirmed different dimensions of transactional leadership favor different dimensions of dynamic capabilities based on different dimensions of regulatory focus, which enriches the theory of strategic leadership and dynamic capabilities, and is conducive to the management of collaborative innovation in technological innovation alliances.