Examining the role of transformational leadership of portfolio managers in project performance

Research into the role of transformational leadership in project based organisations has generally focused on project managers or senior managers and less so on portfolio managers who oversee multiple projects to achieve business objectives. This study examines the impact of transformational leadership behaviour of portfolio managers on project performance directly and indirectly through other intervening variables such as climate for innovation and innovation championing. Using a questionnaire survey, data were obtained from 112 project managers in a UK project based organisation. Transformational leadership behaviour of portfolio managers was found to have a positive and significant relationship with project performance. Innovation championing and climate for innovation both partially mediated the relationship between transformational leadership and project performance. The study confirms the importance of portfolio managers in enhancing project performance and identifies the need for project based organisations to cultivate transformational leadership behaviour among them for enhanced performance. It also highlights the need for further exploration of the role of portfolio managers in improving project performance.

► Transformational leadership of portfolio managers enhances project performance.
► They impact project performance directly through the bypass effect of leadership.
► By the cascading effect of leadership they influence project performance indirectly.
► They impact project performance indirectly by influencing climate for innovation.
► They impact project performance indirectly by influencing innovation championing.