In this section we first discuss the implications of the findings with respect to the value based leadership. Next we discuss the implications of the findings for each of the five theories that were integrated in the models tested. We then discuss the more general implications of the study for the discipline of Organizational Behavior. Value Based Leadership Thomas (1988), House et al. (1991), and by Waldman, Ramirez and House (1996) demonstrate longitudinally, and with adequate controls for spurious relationships, that leaders have substantial effects on the performance of the organizations they manage. However, there have been no studies, other than the U.S. presidential study (House et al., 1991), that investigate the leader motives and behavior that lead to such leader effects. Thus there has been a "black box" concerning how leader processes influence overall organizational performance that remains to be explained. Collectively, the findings of the present study help to understand the phenomena in the "black box." More specifically, the findings show, in some detail, important relationships between chief executives' motives and behavior and subordinates' motivation and commitment to their organization. Having shown how the components function, it is now possible to test linkages between leader behavior, subordinate responses, and organizational effectiveness using longitudinal quasi experimental designs.
Implications for Specific Theories In this section we discuss the implications of the study findings for each of the theories that are integrated to form the Value Based Theory of Leadership. Achievement Motivation Theory Achievement motivation has a more positive effect on CEMS and all leader behaviors in entrepreneurial firms than in non-entrepreneurial firms. This finding constitutes yet another confirmation of achievement motivation theory concerning the specific conditions under which achievement motivation is predicted to result in high performance. Moral Responsibility Theory The bivariate relationships between the moral responsibility disposition and value based leader behavior, leader fairness and CEMS, and the moderating effect of responsibility on the relationships between the power motive, and CEMS, leader charisma, and support/reward behavior all provide support for Moral Responsibility Theory. Moral responsibility motivation is clearly an important disposition that deserves further investigation and attention. Leader Motive Profile Theory The positive relationships between LMP and executive value based leader behavior, support/recognition behavior, and directiveness provide support for LMP Theory. These two relationships are consistent with the interpretation that because high LMP leaders have low affiliative motivation they enact social influence in an impersonal and more proactive and assertive manner than low LMP leaders. The findings are consistent with the propositions that LMP affects leader behavior, and leader behavior in turn has a positive effect on CEMS. These findings suggest a re-specification of the boundary conditions for the role of LMP in organizational functioning. Contrary to the initially specified boundary conditions, LMP has negligible effects on leader behavior and CEMS in non- entrepreneurial firms and positive effects in entrepreneurial firms. These findings imply that LMP has its' major impact on organizational outcomes through its' influence on leader behavior under weak psychological conditions.
Path Goal Theory As predicted by the Path-Goal Theory of Leadership (House, 1996), leader contingent recognition and supportive behaviors are predictive of CEMS, and leader directiveness is more strongly negatively related to CEMS in entrepreneurial firms. Thus Path-Goal theory is provided additional support in the present study.
