Leadership's Activation of Team Cohesion As A Strategic Asset: An Empirical Simulation

Abstract

The current study examined the linkage between leadership, team cohesion, and
superior performance using group process and performance data collected from
a strategic management simulation conducted over a four-month period. Results
showed that organizational leadership was not directly associated with superior
performance (SP) of simulated firms. However, leadership was significantly associated
with team cohesion, which in turn was significantly associated with SF,
suggesting that leadership may strengthen performance indirectly by effectuating
key group process mechanisms. Consistent with the Resource Based View of the
firm, these findings suggest that leader behavior, through its positive impact on
the development of team cohesion, can yield superior performance.