UNIVERSITY OF EASTERN FINLAND Faculty of Social Sciences and Business Studies Business School
Innovation Management
TRANSFORMATIONAL, TRANSACTIONAL OR JUST LAISSEZ-FAIRE? Leadership, Change and Digitalization in the Contemporary Bank Sector.
Master’s Thesis, Innovation Management Riika Närvänen, 208235
January 30, 2018
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Tiivistelmä
ITÄ-SUOMEN YLIOPISTO Tiedekunta
Yhteiskuntatieteiden ja kauppatieteiden tiedekunta Yksikkö
Kauppatieteiden laitos Tekijä
Närvänen Riika Ohjaaja
Esa Hiltunen Työn nimi
Transformationaalinen, Transaktionaalinen, vai ainoastaan Laissez-Faire?
Johtaminen, Muutos ja Digitalisaatio Pankkisektorilla Transformational, Transactional, Or Just Laissez-Faire?
Leadership, Change, and Digitalization in the Contemporary Bank Sector Pääaine
Innovaatiojohtaminen Työn laji
Pro gradu-tutkielma Aika
30.01.2018 Sivuja 65 Tiivistelmä
Tutkimuksen tavoitteena oli selvittää, kuinka digitalisaatiota johdetaan ja toteutetaan käytännössä osuustoiminnallisella pankkisektorilla. Tärkeänä osana tutkimusta oli työntekijöiden ja esimiesten kokemukset murrosvaiheessa työskentelystä. Aikaisempaa tutkimustietoa digitalisaation johtamisesta pankkisektorilta on vähän. Työn teoreettisena tavoitteena oli avata ja syventää digitalisaatiosta ja pankkitoiminnan murroksesta käytävää keskustelua. Tämä toteutettiin tutkimalla sekä työntekijöiden että esimiesten kokemuksia digitalisaatiosta.
Tutkimuksen empiirisenä tavoitteena oli tarjota kuvaus digitalisaatiosta ja sen aiheuttamista muutoksista, sekä tarjota tehokas johtamiskeino murroksen johtamisessa.
Keskeisimpiä teorioita tutkimuksessa olivat transformationaalinen ja transaktionaalinen johtaminen. Empiiristä osuutta varten haastateltiin kuutta henkilöä, jotka toimivat joko työntekijä- tai esimiestehtävässä pankkisektorilla pohjois-savolaisesta kaupungista ja haastateltavat valittiin työtehtävän ja kokemuksen perusteella. Tutkimuksen aineisto koottiin yksilöhaastattelujen ja tarkkailun avulla ja tutkimuksessa hyödynnettiin laadullisia menetelmiä.
Empiriisen aineiston analyysi oli luonteeltaan tulkitsevaa ja toteutettiin teoriaohjaavalla sisällönanalyysillä.
Tutkimus tuo uutta tutkimustietoa tranformationallisesta ja tranaktionaalisesta johtamisesta muuttuvalla pankkisektorilla. Tutkimuksessa todettiin, työntekijöiden arvostavan muutosvaiheessa johtajalta läsnäoloa ja tukea, toisaalta arvostetaan omaa itsenäisyyttä ja oman asiantuntijuuden arvostamista. Johtajat odottavat työntekijöiltä itsenäisyyttä ja heittäytymiskykyä, sekä taitoa kyseenalaistaa vanhoja toimintamalleja. Tehokkaimmassa johtamistyylissä hyödynnetään sekä transformationaalisia sekä transaktionaalisia johtamisen ulottuvuuksia.
Yllättävänä tutkimustuloksena oli laissez-faire johtamistyylin päivittäinen totetus.
Tämä työ kohdistui pankkisektoriin, mutta digitalisaatio kohdistuu laajasti eri sektoreille, heijastuen niin työhön kuin johtamiseen eri aloilla. Näin tätä tutkimus on hyödyllinen esimiehille, työntekijöille sekä muille
digitalisaatiosta kiinnostuneille.
Avainsanat
Digitalisaatio, innovaatiojohtaminen, osuustoiminta, transformationaalinen johtaminen, transaktionaalinen johtaminen
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Abstract
UNIVERSITY OF EASTERN FINLAND Faculty
Faculty of Social Sciences and Business Studies Department Business School Author
Riika Närvänen Supervisor
Esa Hiltunen Title
Transformational, Transactional or just laissez-faire? Leadership, Change, and Digitalization in the Contemporary Bank Sector
Main subject
Innovation Management Level
Master’s degree Date
30.01.2018 Number of pages 65
Abstract
The objective of this study is to investigate how digitalization is led and practiced in co-operative banking sector.
Essential part of the study was experiences of employees and supervisors working in changing environment.
Theoretical goal of the study was to open and broaden discussion of digitalisation in banking sector. The current studies are lacking the research of digitalisation in the banking context. In addition, the goal was to open discussion the effectiveness of transformational and transactional leadership. The empirical goal of the study was to offer description of digitalization and changes regarding of digitalization, and offer effective management style in leading change.
The most central theories in this study were transformational and transactional leadership. For the empirical part, six interviews were conducted. The interviewees were selected by job description and working experience. The interviewees of the study work either as employee or supervisor duties in the city of Northern Savo. The data was conducted by personal interviews and by observation. The study was conducted in qualitative manner.
The results of the study are that expections towards management are presence, guidance, and time to adjust to new instructions. In the contrary, independency and knowledge of one’s expertise are appreciated by the employees.
Employees are expected to be independent and to have an ability to adjust themselves towards new working practices, and question old practices. In the most efficient management style both transformational and transactional leadership dimensions are used.
This study is useful for practitioners, supervisors, employees working in the banking sectors and other interested.
Key words
Digitalisation, transformational leadership, transactional leadership, co-operative banking sector
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TABLE OF CONTENT
1. INTRODUCTION ... 5
1.1. Topic of the study ... 5
1.2 Goals of the study and research questions ... 7
2 LITERATURE REVIEW ... 9
2.1. Co-operative banking ... 9
2.2. Digitilisation and Management ... 11
2.3. Transformational leadership ... 13
2.4. Transactional leadership ... 18
2.5. Critical perspective to transformational leadership ... 20
2.6. Frame of reference... 21
3 METHODOLOGY ... 25
3.1. Methodology ... 25
3.2. Qualitative interviews... 27
3.3. Theme Interview... 28
3.4. Semi-Structured Interview ... 29
3.5. Developing the interview questions ... 30
3.6. Recording and transcribing ... 32
3.7. Analysis of the data ... 33
4 EMPIRICAL ANALYSIS AND RESULTS ... 36
4.1 Digitalisation and changes in banking environment ... 36
4.2 Digitalisation and transformational leadership ... 40
4.3 Transactional leadership ... 46
4.4 General overview from the results ... 48
5 DISCUSSION AND CONCLUSIONS ... 52
5.1 Conclusion of the study ... 52
5.2 Results and significance of the study ... 53
5.3 Evaluation of the study, suggestions for the future research and practical advices ... 56 REFERENCES
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1. INTRODUCTION
1.1. Topic of the study
“You must fly the aeroplane same time as you are building the aeroplane.” This metaphore crystallize the essence of digitalisation, since digitalisation is evolving as the same time as the organizationgs try to catch up with the constantly changing environment and changing customer behavior. This process requires fast turns, rapid decisions, co-operation and determination from employees and from the managers. In this research, my goal is to answer how this process looks like inside an organization the point of view of employees and managers in a very traditional and regulated sector.
Many organizations today, especially in the banking sector, face a dynamic environment characterized by rapid technological change and globalization. In the middle of increasing competition, organizations in the banking sector must be more creative and innovative to survive, to compete, to grow, and to lead. Widely researched leadership style, transformational leadership, match the determinants of innovation and creativity at the workplace, some of which are vision, support for innovation, autonomy, encouragement, recognition, and challenge (Elkins and Keller, 2003). However, current drastic changes in the banking sector, due mainly to digitalization, challenges leadership to maintain and develop more supportive supervision. Leaders must articulate a compelling vision throughout their organizations and try to establish an organizational climate where employees feel empowered and motivated to find innovative approaches in their jobs.
This research will investigate aspects of leadership through transformational leadership in context of co-operative banking sector and how the managers will handle radical change in their unit or organization. The investigation of leadership in the co-operative (banking) context is important, since the banking sector is going through revolutionary change, customer behaviour have been changing through years from traditional banking services. As King (2010, p. 41) states, customer behavior is rapidly changing due to two key factors, namely the psychology of self-actualisisation and technology innovation and adaptation – otherwise known as diffusion. Banks are forced to
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change their practices and services (OP health business). Moreover, banks are facing new competitors in the standard payment mechanics and in the retail financial services in general. Also, dramatic, and fast digital disruption underway in the financial sector will attract new market entrants on an ongoing basis. Digitalization and block-chain systems are the future of the financial sector and traditional banks are moving away or completely disappearing in the future. For example, in summer 2016 OP Financial Group confirmed the Group’s updated long-term strategy.
OP Financial Group aims to gradually change from a plain financial services provider to a diversified services company of the digital era with strong financial services expertise. The strategy highlights customer experience enhancement by digitising services and processes, and at the first stage, business diversification involves expanding to the health and wellbeing business.
New strategies and development of the industry also means that the personnel must change their working practices and completely reform. New practices might be difficult to embrace by the personnel, since the financial industry is considered as traditional, and working practices might be the same as they were years ago. In the finance sector, there are constantly new products and services, which means that the personnel must adapt the new practices rapidly. That is why it is important focus on leadership styles and effective change management.
The aspect of transformational leadership is important. According to Bushra, Usman and Naveed (2011), the key to the success of a banking organization is the leader’s effective management of human resources, since the fear of uncertainty during a period of crisis is likely to lead negative and defensive attitude and behaviour, employees’ turnover and customers’ loss. For this reason, the study and promotion of the factors that make a banking institution work effectively and follow succesful external policies has become essential (Belias & Koustelios, 2015). Transformational and transactional leadership have been widely researched and they are the two most widely known leadership styles (Belias & Koustelios, 2015). However, researchs and studies related to transformational and transactional leadership in the banking context were difficult to find. New businesses and services in the finance sector, process development and efficiency are main reasons why it is important to study leadership and change management and its influence on personnel.
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The topic selection, co-operative environment, banking and digitalisation was born my own personal working history and personal interests. I have been working in the co-operative business over ten years, and the last two years in the co-operative bank. The rapidly changing environment and its relations to human resource and change management are timely topic, especially now when innovations and new practices are made in the finance sector.
1.2 Goals of the study and research questions
The goal for this thesis is to find information about leading digitalisation in co-operative banking context, focusing on transformational and transactional leadership dimensions. Transformational leadership is still timely leadership theory, and especially in rapidly changing and growing digitalisation it is essential to find out how these changes are led and how employees can work effectively under changing environment. The emphasis of this thesis is strongly on leader’s perceptions how digitalization will change working environment and what challenges it might occur.
Transformational leadership theory should be developed in today’s organizations’ needs and new challenges and changing environment should be taken into consideration developing a new theory.
Todays’ organizational environment emphasizes the importance of innovativeness and renewal, and they are important aspects of leadership theories. Transformational leadership has been widely researched and it has been argued to be applied in every industry, from industrial industries to service industries. However, there are very few researchers about the theory which are focusing on the banking sector.
The main research question is:
1) How transformational and transactional leadership are combined to digitalization in the co- operative bank?
Three subquestions for answering the main research question:
1) How is digitalization seen and experienced in the organization and
2) How it effects contemporary leadership practices?
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3) How the transformational leadership and innovativeness could be applied to the co-operative bank?
Innovativeness in a crucial part of transformation leadership. Thus, to answer the main questions it is important to study how the transformational leadership and innovativeness could be applied to the industry which has been considered very traditional and regulated strongly by law.
Firstly, to answer these questions was to go through an iterative process of a broad literature survey and 6 in-depth interviews with organizational leaders and employees. This resulted the identification of four transformational leadership dimensions and transactional leadership characteristics, which was used the second task of analyzing how digitalisation effected in daily leadership practices in organization. The study found that the four dimensions of transformational and characteristics of transactional leadership could be found in all the interviews and they can be seen as complementary theories. Digitalisation has changed working methods in the organization rapidly, and both leaders and employees must adapt their ways of working with the digital services.
The study has following structure. In literature review, firstly I present shortly co-operative banking sector, since co-operative banking sector context of this study. Even though bank has been organized in a co-operative manner, co-operative banking sector itself do not affect leadership styles or practicalities, or relationships between an employee and a supervisor. In literature review I present more deeply transformational and transactional leadership and their dimensions.
Methodoloy part follows literature review, in which I carefully explain methods, the stages of analysis and how the data is gathered. In chapter 4, I analyze the data gathered from the interviews and observations. Further, in chapter 5, I more careful discussion of the results is presented, and I also look through the study more critical manner.
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2 LITERATURE REVIEW
2. 1. Co-operative banking
Co-operative banks have been important actors within the European banking system and they are deeply rooted in the local communities, they are able to create strong relationships among their members based on trust and reciprocity, significantly increasing banking access to small and medium enterprises, farmers, and low-income households (Manetti & Bagnoli, 2013; Giagnacavo et al, 2012). According to European Association of Co-operative Banks (2016), co-operative banks play a key role in the European financial and banking systems. While co-operative banks’ market share in the enlarged EU is about 20 %, and is some countries their share on deposits lies well above this figure, as is the case in Austria, Germany, Finland, France, Italy and the Netherlands (European Association of Co-operative Banks, 2016). Co-operatives are trading enterprises that are wholly owned and controlled by their membership (Calderwood & Freathy, 2014).
Additionally, the main element that characterizes co-operative banks is their mutual nature (Manetti & Bagnoli, 2013). International Co-operative Alliance (1995) defines co-operative “as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise”.
Co-operatives are also based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. Co-operative business differs from other businesses, as businesses driven by values not just profit, co-operatives share internationally agreed principles. International Co- operative Alliance also defines principles which are guidelines by which co-operatives put their values into practice:
- co-operatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership
- co-operatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions, members have equal voting rights and co-operatives at other level are also organised in a democratic manner
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- members contribute equitably to, and democratically control, the capital of their co- operative, the capital is usually common property of the co-operative and the members usually receive limited compensation on capital subscribed as a condition of membership.
- co-operatives are autonomous, self-help organizations controlled by their members Laurinkari (2004, p. 26) defines co-operative main characteristics
- Members own their co-operative and it is ruled by members. Members are primary actors, not necessarily capital investors.
- Members’ private economic benefit and every members’ mutual economic advantage are linked together.
- Members’ help and support are combined in the co-operative - Members rule co-operative democratically
- Members benefit from co-operative by how they use its services, not by the capital invested Several categories of co-operatives exist, depending on their purpose and the nature of their members but co-operative banks are usually consumer co-operatives since their members are also customers (Manetti & Bagnoli, 2013). Co-operative banks generally have a high level of capitalization, stable incomes from retail business and diversified credit porfolio, and they also maintain a customer-orieted business model – including their ownership and governance structures – that benefits the EU, its banking system, its small and medium enterprises, it consumers and its economy. As mentioned above, co-operative banks member-customers are fully involved in the decision-making process of the bank, since they control the co-operatie and exert checks and balances at each level of the business, allowing organizations to minimize risk, identify creditworthiness and promptly respond to customers’ needs (Manetti & Bagnoli, 2013).
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Digitalisation changes the world irrevocably. Faster services, lower prices, accessible bying, change the world globally and that way also customer behavior. Customers expect that services are available instantly, prices are easily comparatible and products are easily ordered. Most customers do no seek personal service, they are expecting that services are available online and via self- service. Customer behavior is the driving force towards digitalisation. Customers’ values, and way to act change, and that will also give organizations ways of producing extra value for customers (Ilmarinen & Koskela, 2015, p. 53-56).
There is no specific term for digitalisation (Ilmarinen & Koskela, 2015 p. 22). Digitalisation happens when issues, items, business models or processes are completely or partly digitalized.
With the help of digitalization, it reforms organization’s strategy and business models.
Digitalisation effects organization’s every parts, levels and practices. It effects strategies, business models, marketing models, productization and IT architecture. Moreover, it effects every function in organization, for example selling, marketing, product development, customer service, human resources and leadership (Ilmarinen & Koskela, 2015, p. 25 and 52).
Success in digitalisation requires new thinking, new services and business models, agility and rapidness to reform business and sensitivity to answer customers’ changing expectations.
Digitalisation helps to grow and improve organization’s viability and it offers practices which improves practitioner’s efficiency and quality. Digitalisations’ benefits are also lowering the costs, which requires efficient actions, such as automatization, self-services and creating new services (Ilmarinen & Koskela, 2015, p. 32).
Digital transformation – namely, the integration of digital technologies into business processes - is one of the major challenges in all industries, it embraces the realignment of technology and new business model to engage more effectively digital customers at every touch point in the customer experience lifecycle (Schuchmann & Seufert, 2015). Liu, Chen & Chou (2011) refer digital transformation as organizational transformation. It is defined as simultaneous major changes in key activity domains, that typically occur over a brief interval of time. It is also complex, revolutionary,
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and continuous process that demands fundamental changes in the organizational structures and systems through product development and service delivery. Since technologies can trigger such changes and provide the means for moving out of the past toward a more efficient and powerful future, organizations are increasingly expected to incorporate digital technology into their business practices to improve transformation. Digital transformation is about structuring new business operations to facilitate and fully leverage firms’ core competence through digital technology in order to attain competitive advantage (Liu, Chen & Chou, 2011; Brynjolfsson & Hitt, 2000).
Digitalisation refers to a process in which the use of digital/computer technology by an organization, company or society etc. is adopted or increased (Larsson & Viitaoja, 2016; Wachal, 1971; Castells, 2010). This is often implemented with the intent of establishing a communication infrastructure that links various activities and/or processes of the given actor’s prosesses (Larsson
& Viitaoja, 2016; Van Dijk, 2005).
Change management has been essential question in the field of management (Strömmer, 1999, p.
89). This phenomenon is called also as transformational leadership. In the organizations, the pressure of change the abilities of managers and supervisors have been questioned: resistance of change must be controlled without discouraging personnel. Meaningfullness of change must be justified in a way that personnel want to engage to the change and work hard for it. This means in the individual level developing own working habits and changes in the working methods, also changes in the functions and the structures of the organization. Great change leader can create ideals, to show with the vision the directions of development, encourage people, and give tools to implement the change (Strömmer, 1999, p. 89).
As Ilmarinen & Koskela (2015, p. 229) states, leading is essential for digitalisation for its success.
Digitalisation will change also the organizations’ strategical aspects and functions, but also individuals daily work and working practices. Leading digitalisation is essential to process simultanuosly possibilities and threats, insecurities, leaving old working methods but also create new practices. However, digitalisation itself do not change good leadership’s basic functions.
Leading is still strategic choices, communication, setting goals and organizing (Ilmarinen &
Koskela, 2015, p. 230). Digitalisation is multifunctional phenomenon, which need simplicity for
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leaders. In changing organization, there are aspects which causes insecurities, so leadership must create securite and calmness in the organization. Often thoughts and beliefs slower the digitalisation, and in the organization, there are old practices which are not always questioned.
Everybody in the organization must reform themselves personally, and the leaders’ own example is important.
Ilmarinen & Koskinen (2015, pp. 235 – 237) define practices for the leadership in the digitalisation.
1) Delegating duties is a way to increase rapidness of the organization. Rapidness is also attitudes and culture, which move organization towards agile organization culture, not forgetting the great athmosphere in the organization. Changes in the digitalisation are rapid and multifunctional, organization’s must do decisions quickly. 2) Decision making is essential in digitalisation. The leaders’ must set and communicate goals and objectices in which organization aims and they must make sure that the goals are understood. Leader’s role is to challenge their followers to rethink ideas and trust the followers that they can do right decisions. Leading digitalisation also requires listening the followers, giving feedback and demanding. Creating organizational culture, which is innovating, encouraging is essential for digitalisation. Moreover, creating vision for the future and mutual goal, creating commitment in the organizations challenge followers to rethink ideas and practices and not fearing failures are also characterics of leading digitalisation and change.
2.3. Transformational leadership
In the learning organization, management’s, and supervisors’ the most central task are supporting for learning (Strömmer, 1999, p. 97). Alongside with the traditional management- and leadership dimensions, third leadership dimension has come to the fore. According to this new leadership dimension, managers and supervisors must be also learning directors and supporters and their task is to build challenging learning environment and constant renewal of working practices. This leadership style has been called transformational leadership (Strömmer, 1999, p. 98).
Transformational leadership is widely regarded as one of the most effective leadership styles (Kovjanic, Schuh & Jonas, 2013; Judge & Piccolo, 2004). Several studies report that
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transformational leader empowers their followers (Gumusluoglu & Ilsev, 2009; e.g. Jung & Sosik, 2002) and establish an innovative climate (Gumusluoglu & Ilsev, 2009; Jung et al., 2003). The transformational leader “engages with others in such a way that the leaders and followers raise one another to higher levels of motivation and morality” (Singh & Krishnan, 2005; Burns, 1978).
Transformational leaders also build to motivate their followers to perform beyond expectations and transactional leaders ensure that expectations are met (Breevaart, Bakker, Hetland, Demerouti, Olsen & Epevik, 2014). Transformational leader motivates followers to overcome their self-interest and to put effort their assigned goals and tasks, which means followers are more motivated and more efficient. As demonstrated by past research, transformational leader enhances followers’
performance (Kovjanic, Schuh & Jonas 2013; Judge & Piccolo, 2004).
According to Bass (1985, 1999), it is also argued that every leader uses both transactional and transformational leadership to some extent, but the most effective leaders use transformational leadership more frequently than transactional leadership (Breevart et al., 2014; Bass, 1985, 1999).
Moreover, transformational leaders integrate creative insight, persistence and energy, intuition, and sensitivity to the needs of others “to forge the strategy-culture alloy” for their organizations. In contrast, contingent reward and management-by-exception styles of leadership characterize transactional leaders. (Bass & Avolio, 1993).
Transformational leaders have been characterized by four separate components or characteristics denoted as the four I’s of transformational leadership (Bass & Avolio, 1993; Avolio, Waldman &
Yammarino, 1991). These components include idealized influence, inspirational motivation, individual consideration, and intellectual stimulation. Idealized influence refers managers being admired, respected and trusted and followers identifying with and wanting to emulate their leaders (van Woerkom & de Reuver, 2009). It also means that followers identify with their leaders and respect and trust them (Bass & Avolio, 1993). Bass (1997) also states that charisma is idealized influence, that is, influence based on perception and behavior of the leader as charismatic, “bigger than life”, endowed with extraordinary capabilities. It can be perception in the eye of the beholder and in in that sense it is attributed idealized influence, and it can be influence based on behaviours such as persistence, determination and risk-taking. According to Gumusluoglu and Ilsev (2009)
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using charisma, the leader inspires admiration, respect, and loyalty, and emphasizes the importance of having a collective sense of mission.
Inspirational motivation refers to creating and communicating an appealing vision of the future and to the leader’s own optimism about this future (Bass & Avolio, 1993) and managers motivate followers by providing meaning and challenge in their work (van Woerkom & de Reuver, 2009).
By inspirational motivation, the leader articulates an exciting vision of the future, shows the followers how to achieve the goals, and expresses his or her belief that they can do it (Gumugluoglu
& Ilsev, 2009).
Individual consideration is the manager’s attention to individuals’ need for achievement and growth by acting as a coach or mentor (van Woerkom & de Reuver, 2009). Moreover, managers acknowledge that every employee has his/her own needs and abilities. According to Gumugluoglu and Ilsev (2009), transformational leaders who care for their employees’ feelings and need, facilitate their skill development, show them ways to achieve the goals and express confidence in them are likely to enhance their employees’ interest in their tasks. Employees under this kind of supportive leadership will be intrinsically motivated and ultimately more creative. The recognition and encouragement that individual consideration by transformational leaders offers are likely to increase the willingness of the employees to focus more and do better in their tasks, and the challenge from this leader’s intellectual stimulation is likely to energize the employees to explore and be more attracted to different dimensions of their tasks.
Finally, intellectual stimulation refers to challenging followers to rethink some of their ideas and to take a different perspective on the problems they face in their work (Breevart et al, 2014) and the leader broadens and elevates the interests of his or her employees and stimulates followers to think about old problems in new ways (Gumusluoglu & Ilsev, 2009). It can also seen as managers stimulating their followers’ efforts to be innovative and creative by questioning assumptions, reframing problems and approaching old situations in new ways (van Woerkom & de Reuver, 2009).
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Moreover, in a highly innovative and satisfying organizational culture are transformational leaders more to be seen who build on assumptions such as: people are trustworthy and purposeful;
everyone has a unique contribution to make; and complex problems are handled at the lowest level as possible. Leaders who build such cultures and articulate to the followers typically exhibit a sense of vision and purpose and align also others around the vision. Such leaders facilitate and teach followers, and take personal responsibility for the development of their followers. (Bass & Avolio, 1993).
With the four I’s behaviour, transformational leaders seem to address three central follower needs (Kovjanic et al., 2013; Hetland et al., 2011; Kovjanic et al., 2012). The need for competence (sense of mastery and effectivess), relatedness (feeling connected and significant to others) and autonomy (experiencing of volition and choice (Kovjanic et al., 2013), Kovjanic et al. (2013) argued that transformational leaders likely foster competence need satisfaction by providing challenges while also showing confidence in and enhancing followers’ abilities, e.g. through coaching and role modelling. In addition, they respect their followers’ individuality while strenghtening team spirit by voicing a compelling vision for the group and by emphasizing the importance of the group’s purpose. Moreover, transformational leaders encourage followers to develop individual solutions to existing problems and consider followers’ perspectives when making decisions.
Transformational leadership influences the fundamental attitudes and assumptions of an organization’s members, creating a common mentality to attain the firm’s goals (Garcia-Morales, Llorèns-Montes & Verdù-Jover, 2008).
The effectiveness of transformational leadership in organizations has been demostrated in number of studies (Singh & Krishnan, 2005). Meta-analyses have shown that it is significantly related to important effectiveness dimensions, e.g. higher performance ratings, enhanced innovativeness, etc and there have been found strong support for researchers’ hypothesis that transformational leadership leads to a sense of collective identity, results in enhanced sense of reverence, and develops trust and satisfaction with the leader. Studies have also shown that transformational leaders significantly energized followers and enhanced their motivation, morality, and empowerment (Singh & Krishnan, 2005; Dvir, Eden, Avolio & Shamir, 2002). According to Bass
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(1997), managers who behave like transformational leaders are more likely to be seen by their collegues and employees as satisfying and effective leaders. Moreover, employees exert a lot of extra effort on behalf of managers who are transformational leaders (Bass, 1997).
Transformational leader
Idealized influence:
Managers are admired, trusted and respected, followers identify with them
Inspirational motivation:
Managers create an appealing vision of the future, managers are challenging followers
Individual consideration:
Managers treat followers as an individual, acts as a coach or mentor
Intellectual stimulation:
Managers challenge followers rethink ideas, they are questioning assumptions, reframing problems and approaching old situations in new ways
Picture 1. Transformational leadership dimensions. (Bass, 1997)
As seen more clearly in the Picture 1, transformational leadership dimensions could be described as encouraging, innovating, and challenging. In these dimensions, more non-incentive values are appreciated, and employees are encouraged to challenge themselves and think critically old practices.
Exploring transformational leadership, it is necessary also investicate transactional leadership, which is a complementary theory in the transformational leadership theory. Transactional leaders motivate their followers to fulfill their leaders’ expectations, while transformational leaders motivate their followers to perform beyond what is expected of them (Breevaart et al, 2014).
Transactional leaders engage in a transaction to satisfy their respective wants (Vaccaro, Jansen, Van Den Bosch & Volberda, 2012; Burns, 1978). The key to a transactional style of leadership is the exchange between the leader and the follower. They influence each other in a way that both parties receive something of value, for example, the leader gives the followers something that they
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want (i.e., pay raise) in exchange for something that the leader wants (i.e., follow the rules). They are mutually dependent upon on another and the contributions of each side are understood and rewarded (Humphreys, 2001). In other words, managers or leaders enter into structured agreements with their employees: transactional leadership is based on exchanges between the group and the leader, and rewards and punishments are used as a control (Bealer & Bhanugopan, 2014).
2.4. Transactional leadership
Moreover, transactional leadership (Picture 2) consists of multiple components that differ in their effectiveness. Some components lead to more committed, loyal and satisfied followers than others (Breevaart et al., 2014; Bass & Riggio, 2006). Most effective component is contingent reward, which means that followers receive incentives after they accompolish their tasks to stimulate followers’ task motivation. Contingent reward is transactional when these incentives are material (e.g. bonus) but can also be transformational when the incentive is psychological in natural (e.g., praise). The management-by-expection is more ineffective compared with the contingent reward.
Management-by-exception active is about the anticipation of mistakes and the enforcement of rules that may prevent mistakes from happening. In contrast, management-by-exception passive refers contfronting followers with their mistakes and expressing disapproval about the mistakes that have been made (Breevaart et al., 2014). Non-transactional leadership involves laissez-faire behavior.
Such leaders are mostly inactive, avoid making decisions, abdicate responsibilities and are absent when needed (Bass, 1997). Moreover, laissez-faire manager allows employees total responsibility, sets no clear goals, and does not help them to make decisions (Bealer & Bhanugopan, 2014).
Studies have shown that this type of management is not efficient, productivity and job satisfaction decrease, there is no cohesiveness and employees become frustrated (Bealer & Bhanugopan, 2014;
Bass, 1990).
19 Transactional leader
Contingent reward:
Followers receive incentives after they accomplish their tasks (e.g. bonus)
Management-by-expection (active):
anticipation of mistakes and the enforcement of rules that may prevent mistakes from happening
Management-by-expection (passive):
Confronting followers with thier mistakes and expressing disapproval about the mistakes that have been made Laissez-faire:
Leaders are inactive, avoid making decisions, adicate responsibilities and are absent when needed. Managers set no clear goals and do not help employees to make decisions
Picture 2. Transactional leadership dimensions. (Bass, 1997).
De Vries (2001, p. 252) calls transactional leadership “a mundane contractual exchange based on self-interest”, and in many cases transactional leadership is an indication of mediocrity (Bealer &
Bhanugopan, 2014). Moreover, transactional leadership can be seen as behaviours as those that are essential for keeping the organization functioning by meeting people’s needs for leadership but falling short of being inspiring. Transactional leadership is traditional leadership style most suited to keeping the organization running smoothly in stable circumstances (Bealer & Bhanugopan, 2014).
I have identified from the previous researches two dimensions from the transformational leadership theory which are linked most likely to innovation management and are essential for innovation in organization. Inspiration motivation and intellectual stimulation characteristics can be found in the current literature. Matthews (2014) argues, that the most innovative companies, top managers clearly expect, appreciate, and actively support innovation. They personally build a truly exciting corporate vision around strategic goals and they set figure-of-merit performance targets that crisply define what winning competitively means in each critical arena. According to Denti & Hemlin (2012), empowerment, the motivational construct consisting of meaning, competence, self-
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determination and impact, both moderates and mediates the relationship between leadership and innovation. Moreover, leaders should promote a team climate of emotional safety, respect, and joy through emotional support and decision-making.
2.5. Critical perspective to transformational leadership
Current studies strongly link the positive effects of transformational leadership to the innovativeness and creativity of organizations. Current research is lacking the critique of the transformational leadership and its’ impact of innovativeness. Moreover, the emphasis has been in very general and the studies focus on theoretical aspects, not from the practitioners’ point of view.
Moreover, the data is usually gathered by surveys, which often only describes one’s perceptions and viewpoints, not practices in the organizations. Studies reviel that the transformational leadership has a positive effect on organizational innovation (e.g. Jung, Wu & Chow, 2008) but what are the practices what for example CEO’s or supervisors do to increase innovative behavior in organizations (in the banking sector)? Moreover, current study of transformational leadership is usually quantitative, qualitative research would give more specific answers from the practitioner’s aspect.
Transformational leadership theory should be developed in today’s organizations’ needs and new challenges and changing environment should be taken into consideration developing new theory.
Todays’ organizational environment emphasizes the importance of innovativeness and renewal, and they are important aspects in leadership theories. Transformational leadership has been widely researched and it has been argued to be applied in every industry, from industrial industries to service industries. However, there are very few researches about the theory which are focusing to the banking sector. How the transformational leadership theory and innovativeness could be applied to the industry which has been considered very traditional and regulated strongly by law?
Specifically, several writers have linked transformational leadership to innovation (e.g. Howell &
Avolio, 1993). Transformational leaders enhance innovation within the organization; the tendency of organizations to innovate. Leaders’ use of inspirational motivational and intellectual stimulation is critical for organizational innovation (Gumusluoglu & Ilsev, 2009; Elkins & Keller, 2003).
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Transformational leaders have a vision that motivates their followers, increases their willingness to perform beyond expectations, and challenges them to adopt innovative approaches in their work (Gumusluoglu & Ilsev, 2009). The resulting heightened level of motivation is likely to enhance organizational innovation (Gumusluoglu & Ilsev, 2009; Mumford et al., 2002). The emphasis of the creating and leading innovations have been in the transformation leadership. However, as Bass (1990) argued, transactional leadership is also important aspect of creating innovative organization, and moreover, both the transformational and transactional leadership should be complementary theories in the research of innovation and renewal.
2.6. Frame of reference
In this thesis, I investigate the role of transformational leadership through innovativeness and digitalisation. Moreover, it is important to investigate the dimensions of transformational leadership supporting innovation management in the rapidly changing organization. Digitalisation, as it changes practices and functions in every organizational level, it also changes aspects of leadership. Leadership aspects and its benefits for the organization are important to study and focus for the organization to keep its competitiveness in the digitalisation.
In the point of view of innovation management, I have created frame of reference from the previous study of transformational leadership, and the dimensions that are essential for the innovation management and leading organizations in changing environment are idealized influence and intellectual stimulation. Idealized influence and intellectual stimulation are dimensions, which support innovative thinking in the organizations. Managers are admired, respected and trusted and followers have connection with managers, which create innovative athmosphere and trust in the organization. With intellectual stimulation, managers are challenging followers to rethink ideas and question assumption, which again create potential innovative athmosphere in the organization.
In innovation management, questioning and approaching old situations in new ways create new solutionsregarding practices or way of working.
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Picture 3. Leadership, change and digitalization in the comptempory bank sector
It is important to notice, that even though transformational leadership has its different dimensions, with transactional leadership, the leadership style is effective. As Bass (1997) presents, transformational and transactional leadership must be seen as complementary theories. In practice, as described in Picture 3, digitalisation (including changing customer behavior, effectiveness of work and IT development) and organization’s strategy define outlines which every branch or unit has to follow. The leaders’ duty is to organize and create certain rules using both transactional and transformational leadership for creating employees safe and effective for implementing new practices and ways of working under digitalisation. However, it is important to understand that the digitalisation is a continuous process in the organization, in a way that employees in the organization are developing the most efficient working ways to work.
This study is important, current innovation management study are missing the transformational leadership point-of views, even though transformational leadership aspects are strongly linked into innovativeness. The proposal of an effect of transformational leadership on innovation at the
Digitalization
Transformational leadership
Transactional leadership
Idealized Influence + Inspirational motivation + Intellectual stimulation + Individual consideration
Contingent reward + Management-by-
exception
Leadership and change in co- operative bank in leader’s and
and employee’s perspective
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organizational level has become a topic of empirical research only recently (Gumusluoglu & Ilsev, 2009).
Why it is important to expand and focus the research in the financial sector? The finance sector is moving rapidly towards digitalization and the traditional systems and practices are stepping aside from new services and products. Customers acquire more ways of communicating with one another, leading to profound impact on banking industry. Customers no longer need to abide by the banking opening hours, moreover, a large-scale study revealed that modern bank customers of today desire freedom in where to conduct their business (Larsson and Viitaoja, 2016; Zook and Smith, 2016). This situation forces old practitioners renew themselves with the customers (Talouselämä, 2015). Moreover, the expansion of IT technology and digitalization has also opened new venues of customer relationships that were not previously available (Larsson & Viitaoja, 2016;
Barney & Ray, 2012; Xue et al., 2013).
The banks’ operative environment is in constant change by general economic situation, low interests, and competitive situation (Euro ja Talous, 2015). For example, OP Financial Group is making heavy investments in the development of digital business and customer experience (OP annual report 2015). These environmental changes are already taken into consideration and in the finance sector new services, practices and strategies have been created. However, the changing environment and technology will be even greater in the future, when new methods will change the whole finance sector by lowering costs in the sector, creating reliability and replace current services (Samlink).
New technologies and strategies without doubt will change banks’ operating environment, working practices, services and even the physical environment. This will create challenges in managing change organizations and leading personnel through completely new era in the finance sector.
Focusing the research on the leadership theory will give important information about leading organizations in the process of digitalisation. Moreover, current transformational leaderhip study is lacking the ethnographic research from the financial sector, or more specifically, in the co- operative banking sector. There are multiple studies conducted by surveys, but I am interested perceptions and actual practices in the organization, in which qualitative research are more useful.
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I can also observe routines and practices and mirror them in the current study in the organization, which will give this study more reliability.
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3 METHODOLOGY
3.1. Methodology
Qualitative research methods are designed to help researchers understand people and social and cultural contexts within which people live. As my goal was to find answers to questions such as how the transformational leadership dimensions are used in the organization or how the digitalisation effects on daily work, the qualitative research was the most suitable method for my purposes. More specifically, qualitative research is good for exploratory research, when the topic is new and there is not much previously published research on that topic. It is also ideal for studying the social, cultural, and political aspects of people and organizations (Myers, 2013, p. 9). Moreover, qualitative research approaches are concerned with interpretation and understanding. The collection of data and their analysis are sensitive to the social and cultural context aiming at a holistic understanding of the issues studied (Eriksson & Kovalainen, 2008, p. 5). In the contrary, quantitative research is more prone to structured, standardized, and abstracted modes of collecting and analyzing empirical data. Common way to use qualitative methods in business research is to use them as providers of a better understanding of issues that have remained unclear in quantitative studies (Eriksson & Kovalainen, 2008, p. 5).
Bogdan & Biklen (1998, p. 4-7) define five features of qualitative research: Naturalistic, descriptive data, concern with process, inductivity and meaning. Qualitative research has actual settings as the direct source of data, which means that in qualitative research the data are collected on the premises and supplemented by the understanding that is gained by being on location. In other words, researchers are concerned with context. In addition, qualitative researchers assume that human behavior is influenced by the setting in which it occurs (Bogdan & Biklen, 1998, p. 5). Qualitative research is also descriptive, which means that the data collected take the form of words or pictures rather than numbers thus the data includes interview transcripts, personal documents, fieldnotes etc. Moreover, qualitative researchers are concerned with process rather than with outcomes or products (Bogdan & Biklen, 1998, p. 6). Eriksson & Kovalainen (2008, p. 12) also states that during the constant growth of information and research knowledge, it becomes extremely important to
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assess the production process of that knowledge. Researchers must reconsider their knowledge:
how it is produced, described and justified.
According to Bogdan & Biklen (1998, p. 6), qualitative researchers tend to analyze their data inductively. Eriksson & Kovalainen (2008, p. 22) explain the inductive research process starts from empirical research to theoretical results. Lastly, Bogdan & Biklen (1998, p. 7) states that “meaning”
is of essential concern to the qualitative approach. Qualitative researchers are concerned with participant perspectives and they are concerned with making sure they capture people’s own interpreting and significance and perspectives as accurately as possible (Bogdan & Biklen, 1998, p.7).
Eriksson & Kovalainen (2008, p. 290) emphasize the continuous evaluation during the whole research process. The three concepts of reliability, validity and generalizability provide a basic framework for the evaluation of research of research in social sciences as well as in business research (Eriksson & Kovalainen, 2008, p. 291). Reliability tells the extent to which a measure, procedure or instrument yields the same result on repeated trials and it is one of the classic evaluation criteria which is commonly used in quantitative research. Reliability is related to the establishment of a degree of consistency in research in the sense that another researcher can replicate the study and come up with similar findings. Validity refers to the extent to which conclusions drawn in research give an accurate description or explanation of what happened. To be able to say that research findings are valid is to say that they are true and certain (Eriksson &
Kovalainen, 2008, p 291-292).
Ethnography refers to a research methodology that has been developed for the study of cultures and cultural sense-making and the researchers seek to gain the “native’s point of view” of what happens in a culture (Eriksson & Kovalainen, 2008 p. 138). They also define ethnography as to observe how people interact with each other and with their environment in order to understand their culture (Eriksson & Kovalainen, 2008, p. 138). In business studies, organizational ethnographies provide in-depth descriptions on a wide range of topics within the field of management and organizations. Ethnographers gathers data by observing, which is later complemented by interviews and other documents. As I was able to collect information by observing the organization
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in my daily work, I kept observing diary, in which I wrote objective information about daily aspects and practices.
A central feature of all case study research is that the research questions are related to understanding and solving of the or cases (e.g. individuals and groups, organizations, events, processes) and what can be learned by studying it. (Eriksson & Kovalainen, 2008, p. 115). The main purpose is to investigate the case in relation to its historical, economic, technological, social and cultural context (Eriksson & Kovalainen, 2008, p. 115). Moreover, business-related case study research is often practical, and it can also be normative. The empirical data in case study research is often collected by in-depth interviews and it is often the primary source of the empirical data. However, in the case research the empirical data is based on several sources and feature of case study research is that it offers possibility to combine qualitative and quantitative materials (Eriksson & Kovalainen, 2008, p. 116).
However, the main reason I have chosen interviewing my data gathering method, is almost purely practical. As Koskinen, Alasuutari & Peltonen (2005, p. 106) states, practical reasons often justifies the use of interviewing method. Since I am doing my thesis at the same time as I am working full- time, the method must be very flexible to conduct. I have an opportunity to observe certain organization, or to explore interaction of the employees, due to anonymity of the research.
Moreover, as Koskinen, Alasuutari & Peltonen (2005, p. 106) states, interviewing is often actually only method to gather people’s meanings and interpretations.
3.2. Qualitative interviews
According to Silverman (1998, p. 113), interviewing provides a way of generating empirical data about the social world by asking people to talk about their lives and in this respect, interviews are special forms of conversation. Eriksson & Kovalainen (2008, p 78) states also that qualitative interviews may also resemble everyday conversations, in which the distinction between the interviewed and the interviewee is not so evident.
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In general, interviews consist of talk organized into a series of questions and answers and they often take place face to face, but they can also take place over telephone, or online using computer- mediated technologies (Eriksson & Kovalainen, 2008, p. 78). Semi-structured, or theme interview, is the most used data gathering method in business studies (Koskinen, Alasuutari & Peltonen, 2005, p. 105). Semi-structured interviews are generally organized open-ended questions emerging from the dialogue between interviewer and interviewee/s (DiCocco-Bloom & Crabtree, 2006).
Silverman (1998, p. 102) defines interview as an interaction between the interviewer and interview subject in which both participants create and construct narrative versions of the social world.
Interviews also provide a useful way for researchers to learn about the world of others, since both parties might share different worldviews and cultural differences (Qu & Dumay, 2011).
Moreover, Silverman (1998, p. 102) argues that these narratives are context-specific to fit the demands of the interactive context of the interview. However, the research interview is one of the most important qualitative data collection method and it has been widely used in conducting field studies and ethnographic research (Qu & Dumay, 2011). Interviewing is often the most convenient method to gather data, since the method does not need time consuming resources, or special arrangements such as observation in the organization (vs case study) (Koskinen, Alasuutari &
Peltonen, 2005, p. 106). Moreover, the common reason why interviews are used in business studies, is that they are efficient and practical way of collecting information that is not be found in published form.
3.3. Theme Interview
Koskinen, Alasuutari & Peltonen (2005, p 104) define theme interview as semi-structured interview, which is also clearly the most used qualitative data gathering method. Well used, the theme interview is extremely effective, and the effectiveness is based on that the researcher can guide the interview without controlling the whole interview. (Koskinen, Alasuutari & Peltonen, 2005, p. 106). Tuomi & Sarajärvi (2009, p. 75) define theme interview as method in which the interview follows certain themes and questions which are conducted beforehand.
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Moreover, according to Koskinen, Alasuutari & Peltonen (2005, p. 108), theme interview is very simple form of interaction, which is formed questions asked by interviewer and usually rather narrative answers by interviewee. The researcher can ask also focused questions during the interview which are related to the themes. In the theme interview, interpretations and meanings are emphasized. Additionally, as Qu & Dumay (2011) states, the theme interview involves prepared questioning guided by identified themes in a consistent and systematic manner interposed with probes designed to elicit more elaborate responses.
The focus is on the interview guide incorporating a series of broad themes to be covered during the interview to help direct the conversation toward the topics and issues about which the interviewer wants to learn. Theme interview follows certain beforehand chosen key theme and also specific and focused questions related to themes. Humans’ interpretations and meanings are emphasized and how the meanings are born in interaction (Tuomi & Saarijärvi (2009, p. 75). They also emphasize that conducting the interview, interviewers’ aspiration is to find meaningful answers in accordance with the purpose of the research and research purpose. The themes selected in advance are based on the research’s frame of reference (researched phenomenon to already known) (Tuomi
& Saarijärvi, 2009, p. 75).
3.4. Semi-Structured Interview
Qualitative interviews can be loosely differentiated as unstructured, semi-structured and structured (DiCocco & Crabtree, 2006). Unstructured interview can be seen as informal interview method, which has its roots in the open-ended ethnographic interview. This interview process shapes to the individual situation and context (Qu & Dumay, 2011). Semi-structured interview is the most used data gathering method in business studies. Semi-structured interviews are planned, but the questions may build during the interview. These same themes are processed in every interview in the same study, but the form and arrangement of the questions may vary. In semi-structured interviews the interviewer focuses on certain themes and aspects in which he or she wants answers but the interviewee can tell his or hers motivations and experiences in his or hers own terms. Semi- structured interview is flexible, accessible, and capable of disclosing important and often hidden
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facets of human and organizational behavior. Semi structured interview reminds natural human conversation, it allows the skillful interviewer to modify the style, pace and ordering questions to evoke the fullest responses from the interviewee (Qu & Dumay, 2011). The major advantage is that the materials are somewhat systematic and comprehensive, while the tone of the interview is conversational and informal (Eriksson & Kovalainen, 2008, p. 82).
Semi-structured interviews (in Finland usually “theme interview” (Koskinen, Alasuutari &
Peltonen, 2005, p.104-105) are often the sole data source for a qualitative research project and they are usually scheduled in advance at a designated time and location outside of everyday events (DiCicco-Bloom & Crabtree, 2006). The semi structured interview involves prepared questioning guided by identified themes in a consistent and systematic manner and the focus is on the interview guide incorporating a series of broad themes to be covered during the interview to help direct the conversation toward the topics and issues about which the interviewers want to learn (Qu &
Dumay, 2011).
The method also has its benefits to enable interviewee to provide responses in their own terms and in the way that they think and use language. Moreover, the method is extremely useful especially to the researchers who are exploring the way the interviewees perceive the social world under study (Qu & Dumay, 2011) Koskinen, Alasuutari & Peltonen (2005 p. 106) emphasize the practical reasons to use semi structured interviews in qualitative research method in business studies. They state that interviewing is only way to gather meanings and perceptions. Qu & Dumay (2011) explain that semi structured interviews help develop for example understanding of the ways managers make sense of and create meanings about their jobs and their environment. The basic research question needs to be sufficiently focused so that a relatively homogenous group will have shared experience about the topic.
3.5. Developing the interview questions
Conducting the interview requires the use of various skills and careful planning and sufficient preparation. It is also necessary for the researchers to develop as much expertise and knowledge in relevant topic areas as possible to collect data for useful research purposes (Qu & Dumay, 2011).
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Based on the focus of the study, the basic research question needs to be sufficiently focused so that a relatively homogenous group will have shared experiences about the topic. (DiCocco-Bloom &
Crabtree, 2006). However, as Eriksson & Kovalainen (2008 p. 79) states, the research questions are not equal to interview questions. The basic idea of the interview questions is to provide material that will help the researcher to answer the research question through careful analysis.
Essential instrument of the interview is the interviewing frame, which guides the interviewer.
Alasuutari, Koskinen & Peltonen (2005, p. 108-109) state two main functions of the frame: it ensures that the interviewer asks the needed questions and secondly, it ensures that the interview is natural process.
Eriksson & Kovalainen (2008, p. 83) define question types which can be used in interviews. They state that it is possible to combine various types of questions in the interview, even though it is quite common to use the same types of questions throughout the interview. Interview questions can vary between very open ended to very closed. Open-ended questions give the interviewee more control over what is talked and often produce more detailed responses. Koskinen, Alasuutari &
Peltonen (2005, p. 109) argue, in the semi structured interview, the questions are usually open- ended – closed questions are used to ask facts, such as age, gender, position in the organization.
Moreover, it is important to understand that the questions’ function is to produce the information which can be later interpret with the help of theory.
Koskinen, Alasuutari & Peltonen (2005, p. 110) divide the order of the semi structured interview to three different chapters. First question is usually “warming up”-question, which focuses on the interviewee. Interviewing frame proceed next 7-8 content questions. Last two questions are usually
“ending questions”. Moreover, Qu & Dumay (2011) suggest to use introducing questions, which are meant to “kick start” an interview and move to the interview’s focus rapidly as possible. These questions are not directly related to the research questions but are opening questions, such as “Can you tell me about [..]”.
Three semi-structured interviews with organizations’ supervisors, or “team managers” and three semi-structured interviews with employees of organization were conducted for this study. Even though the interviews were semi-structured, they had theme interview characteristics. I asked
