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Effects of collaborative leadership on organizational performance

Many businesses fail to secure a sustainable competitive advantage in a fast-changing global world, and now leaders are challenged by a constant urge to keep high business performance. This failure may sometimes be the consequence of lower level and quality of knowledge spread in the entire enterprise, and mostly at managerial levels that can reduce business success. Based on earlier studies in a relevant field, it has been shown that leadership style has a positive influence on the success of an organization. Currently, no previous researches have studied the effect of collaborative leadership on performance. This article will seek to fulfill this gap by theoretically and empirically investigating this link, presenting a detailed literature review, and robust statistical investigation based on a structured questionnaire finished by 262 managers to get findings. This study affirmed that there is a positive relationship between collaborative leadership and performance, and leaders are forced to adopt a collaborative leadership style to enhance organizational performance.


Introduction
It is essential for leaders to be near areas where employees are located during their work days to ensure a positive working environment. There is a demand for improving engagement, and building relations with various stakeholders. It is the principal intention behind "Collaborative Leadership". Collaborative leadership is a crucial source of competitive advantage, but rare are those leaders who were trained to work collaboratively, mainly those at middle and top managerial posts (DeWitt, 2016) [11] . This leadership Style also consists of strengthening corporate management style, understanding self-efficacy while improving learning processes.
Whatever one's style, every leader, to be effective, must have and work on improving his or her moral purpose.

-Michael Fullan
Leadership is the growth for others and us, and it is a process of constant learning, and improving the stakeholders' growth, and relationships. (DeWitt, 2016) [11] recognizes that collaborative leadership framework comprises: those who collaborate, negotiate, and regulate.

The need for the Study
Previous researches have recommended this study, including (Jameson, 2007) [18] , (Marks and Printy, 2003) [27] , (Lira, 2016) [24] . This article may encourage leadership scholars and practitioners to recognize and realize how collaborative leadership may influence the performance of a business. It is essential due to growing challenges in the entire world. There is no previous research undertaking this topic of the impact of collaborative leadership on organizational performance.

Purpose of the study
This article will demonstrate if leaders can improve organizational performance by adopting the latest trends and improvements in leadership, and principally the collaborative leadership style. The researcher will introduce leadership, organizational performance, and perform comprehensive analysis utilizing questionnaire and advanced statistical methods to contribute to the knowledge in management by valid and reliable results in a fast-changing global world.

Statement of the Research Question
The research question of this article is: "What is the impact of collaborative leaders on organizational performance?"

Literature review 2.1 Leadership 2.1.1 Leadership Nowadays
Nowadays, businesses are decreasing the size of their hierarchies and redesigning their structures. Based on observation of leaders in administrative posts and other higher-level functions, researchers discovered that borderless, networked organizations need new manners of management with increased connectivity, or what is named "meta-leadership". Meta-leaders aim to accomplish outcomes that cannot be realized by one company or one function. Individuals working in diverse positions in the hierarchy need collaboration (Marcus, Dorn, Ashkenazi, Henderson, & McNulty, 2009) [26] . Also, leaders must be prepared and enthusiastic. Carucci (2015) [8] examined thousands of leaders who were promoted into leading positions to detect the most significant mistakes of leaders in such situations. The study found that credibility is not gained through perfection, as leaders gain credibility when they honestly share that the positions and jobs inside the organization are not proportional and are reflected in the bonuses, allocation of resources, and chances of promotion.
Team members want leaders who listen and resolve problems and share their work-related concerns. Leaders should be accessible -but not 24/7; balance should be established (Carucci, 2015) [8] . Looking to modern leaders for guidance, (Budak, 2016) [6] examined the qualities of Canadian Prime Minister Justin Trudeau to reach the most crucial components of effective leadership. The main findings are that competent leadership is a result of the following four elements: high levels of emotional intelligence, diversity, humility, and positivity. According to (Goman, 2015) [16] , nowadays, companies are operating in a world full of change, and leaders must benefit more than earlier from intelligence and creativity of their workers. Collaboration is becoming a requirement to deliver business survival and development.
Another study looked at another personal habit -sleep -and its effect on leadership. (Van Dam and van der Helm, 2016) [31]\ state that the lack of sleep will negatively influence the behaviors of leaders, while adequate control of sleep will lead to an advance of the efficiency and effectiveness of the entire organization as well as improved creativity, and decisionmaking. Leadership styles include "quiet leaders" who move patiently, cautiously, and incrementally and do the right thing for their businesses, people around them, and themselves. Quiet leaders see the world as it is, in order to prevent any surprises from diverse situations. They move patiently, with contingency plans, and are ready in both positive and negative situations and their actions are quick and wise. They consider the importance of trust and understand that breaking this trust can occur quickly. (Badaracco, 2002) [3] . Leadership is even related to exercising and having power on followers, and this will directly link leadership to the two styles of "Command-and-Control" or "Charismatic". Nowadays, leadership requires cooperation, paying attention, influencing, and being adaptive, and all these characteristics comprise the collaborative leadership (De Meyer, 2009) [10] . This change is the result of many elements including globalization, divisions of the value chain, abundance of knowledge workers, increasing demands and challenges in the society, spreading of the sources of information and innovation, changes in organizational structures of multinationals, increased importance of risk management, in addition to advancements of information and communication technologies.

Leadership Theories
(MindTools, 2015) [28] presented some important leadership theories that shaped the world of leadership, including the trait leadership theory, the behavioral leadership theory, the contingency leadership theory, and the power influence theory, as described in the next sections. 1. Trait Leadership Theory: The trait theory states that effective leaders are born with natural characteristics that cannot be learned or gained throughout life. These traits determine the characteristics of leaders regarding honesty, understanding of the feelings of others, persistence, good decisions, and acceptance from followers. Interactions with followers push the leader to work harder to influence the team to work together towards achieving the organizational goals. 2. Behavioral Leadership Theory: The behavioral leadership theory states that the effectiveness of leaders is related to how they behave and the manners they adopt in communicating their decisions to their followers. According to Lewin (1930), there are three types of leaders based on behavioral aspects: autocratic, democratic, and laissez-faire. Autocratic leaders make decisions alone and are most effective in cases when quick decisions are needed and when a team can perform its tasks with no discussions. Democratic leaders involve the team members in the decision-making process; this increases followers' commitment and involvement. Democratic type of leader can be ineffective when facing a huge number of possibilities and ideas. The laissez-faire leader puts the decision-making process in the hand of their team members with no intervention. This style is applicable when there are very qualified team members who are motivated and able to work with no direct guidance. This type becomes ineffective because the leader is lazy or incapable of focusing on tasks, which is very dangerous for the whole organization. 3. Contingency Leadership Theory: The contingency theory states that the effectiveness of leaders cannot be determined through a given theory or style because needs differ for each situation and require a specific response, decision, or action from the leader. 4. Power-Influence Leadership Theory: Power and influence theory searches for the source of power and the leader's influence. The most popular is French and Raven's Five Forms of Power, which divides power into two categories: positional and personal.
According to this theory, a leader's positional power can be legal, remuneration, or forcible, and personal power can be experience-based or exhortation. According to this theory, personal power is more effective, and leaders focus mainly on their experiences and expertise to influence the effectiveness of the organization. The Mind Tools article implies the transformational leadership style is the most effective, but leaders still must study all leadership styles to be aware of their characteristics and adopt the style to fit the situation best.

Leadership traits and behaviors
The earliest studies of leadership focused on the traits of a leader; the most important traits are: honesty, inspiration, self-confidence, and adaptability (Ancona, 2005) [2] , But as these traits do not always predict effectiveness, researchers shifted to study the style and the behaviors of leaders in order to determine which are useful and which are not. A study at MIT Sloan, the faculty of Business at MIT, proved tha leaders should be involved in change processes and should develop a working environment that stimulates and motivates people to make needed changes. Finally, leadership is a continuous process, and it grows with practice, dealing with diverse situations, seeking feedback, and continual advancements. (Weick, 1995) [32] Found four key complementary competencies for leaders: sense-making, relating, visioning, and inventing. Sense-making is creating a sense in the environment and the places where of living and work.
Relating is the capacity and skills in building, developing, strengthening, and maintaining healthy relationships.
Relating is encouraging others to do a task while being open to all kinds of new ideas and concerns. Relating is also the ability and capacity to work with others and develop change for the sake of the whole group. Visioning is about developing a convincing vision for the future and understanding the importance of tasks and activities to achieve the primary goal in a given time frame. Inventing is about developing the processes and steps required to achieve this vision, which is achievable in many different ways, like the advancement of how people work together, timing, location, methods, and interpersonal relationships. These four capabilities are complementary and need to be managed well by leaders; leadership is the sum of individual and collective capacity (Weick, 1995) [32] . (Goleman, 2000) [15] Conducted a quantitative study with 3000 executives to learn which leadership behaviors are responsible for achieving positive results. The questions cover six leadership styles: coercive, authoritative, affiliative, democratic, pacesetting, and coaching. The findings were that effective leaders need to adopt a combination of different leadership styles at the same time, which is hard to implement, but it increases the effectiveness and performance of the corporation. Coercive leadership requires forced and compelling following by orders. An authoritative leader drives the followers to pursue and adopt a given vision. Affiliative leadership motivates and inspires followers by focusing on emotions and the harmony between the team members. Democratic leadership focuses on joining people together to achieve goals and increasing their level of openness and communication to match the requirements of the tasks in question. Pacesetting leadership aims to excel in the entire set of tasks and is directed by the internal knowledge and sense of the leaders. Coaching leadership helps followers to acquire the needed skills and experiences to be able to survive and succeed in the future.

Leadership Styles
The implications of (Goldman, 2000) study are the necessity to increase the awareness about the different leadership styles, develop better training, and ensure that the correct combination may be adopted to bring positive business results. Leadership styles are different globally. Asian and American leadership styles are slightly different. American leadership styles are usually: directive, participative, empowering, charismatic, and celebrity types (Mills, 2015) [28] . Mills implies that leaders should adopt the right, diverse leadership style, respect the differences between regions, and capitalize on the development of leaders to achieve greater effectiveness. Leaders must adopt new leadership styles in order to survive the turbulent global business environment and position their businesses in the best situation (Lee, 2015) [23] .

Collaborative Leadership
Collaborative leadership entails getting the right mentality, reducing operation charges, viewing beyond the boundaries of the company, developing harmony, and maintaining the capability to connect smoothly with others, and in managing contradictions. (Goman, 2015) [16] found that many bad organizational behaviors damage this new collaborative leadership style, and they are the abundance of silos in the workplace and the waste of collective capacities. These behaviors will negatively impact profitability, reduce the motivation of people, decrease creativity, and make the workforce less productive, and less joyful. Collaborative leadership style was able to replace the command-and-control by trust and active presence. In this environment, the followers are encouraged to see themselves as individuals of value, seeking additional knowledge, and increasing their network, while being more creative in proposing creative ideas, and contributing in the success of the business. (Ullah, 2011) stated that many factors have resulted into growing need of collaboratively leading, and these factors contain and are not limited to the following changes: globalization, increasing reliance on technology, in addition to the fierce competition. Merrill Lynch introduced many cultures of collaboration that were less hierarchically-based, and despite all the challenges, efforts, time, and risk of implementing collaboration, but the senior employees of the bank acknowledge it as highly beneficial.
Leadership consists of structured methods, and not magic as it focuses on a vision that aims to achieve results. It consists of autonomy with clear directions and goals.

Organizational Performance 2.2.1 Explaining Organizational Performance
According to (Feser, Mayol, and Sirinivasa, 2015) [13] , for performance, leadership is a necessity, like oxygen for breathing. Leadership is a primary driver for the growth of organizations. A leader must inspire the followers. Leaders must know and acknowledge individuals' way of thinking and give trust, interest, and knowledge about what they need and desire. Leaders will be a source of organizational efficiency, establishing a positive environment and limiting conflicts The definition of performance is usually related to the outcomes of the company, its profitability, as well as the extent to which it attains the goals, succeeds in the strategic and operational objectives, benefits the shareholders, supports the environment and the society and maintains a healthy and prosperous track of responsible business management practices (Kaplan, and Norton, 1992) [19] . Many internal and external factors affect organizational performance The American Management Association offered a guideline "How to Build a High-Performance Organization" (AMA, 2007) [1] . The main findings were that higher organizational performance is the outcome of retaining the right people with appropriate qualifications, expertise, and methods of thinking in addition to the continuous development and training of these workers. Performance is sometimes related to a need to confront global competition, to improve customers' focus, or to respond to changes in the marketplace. It is profoundly related to understanding and applying technology. The AMA suggests adopting an appropriate performance appraisal system to gain competitive advantages in the fast-changing global world (AMA, 2007) [1] .

Performance Measurements
According to (Kaplan, and Norton, 1992) [19] , businesses are urged to adopt the latest performance measurements, practices and tools to succeed, be more effective in the long run, survive, develop, compete and attain their goals. Furthermore, when it comes to performance, several metrics are available, and the requirements should be intensely tested before choosing a metric. Executives and managers are the first who should assess performance because they are responsible for making the daily decisions in addition to strategic and operational decisions; therefore they need a fair amount of clear, complete and correct data that will establish the foundation of business performance's measurements. According to (Eckerson, 2009) [12] , the implementation of the correct performance measurements may profoundly interfere with the existing organizational culture and with the way of thinking of the managers and the employees. Therefore those behaviors must be altered. (Kaplan, and Norton, 1992) [19] noticed many financial and non-financial metrics could measure that performance. These measurements include, but they are not limited to return on equity, market share, return on assets, Baldrige's Criteria for Performance, balanced scorecard method of Harvard Business School, return on sales, the performance prism, traditional performance measurements, and Tobin's Q and total shareholder return (Cooper, and Kaplan, 1991) [19] found that adapting effective and successful measurement program is sometimes an expensive duty concerning the needed leadership, hard work, investments in human resources and financial investments.
Maintaining accurate figures and information will assist managers to be more efficient and more well-defined in the functions of the business because sometimes, decisions based on incorrect information are harmful and may harm the brands, even if they are well prepared and designed. This change requires the efforts of the company's leaders and top managers that will steadily be the most trustful source of support and advises to build and promote critical sustainable values, practices, and business procedures (Bower, 1977) [4] .

The Balanced Scorecard
The balanced scorecard was developed at Harvard Business School by Dr. Robert Kaplan and David Norton at the beginning of the 1990s as a system of non-financial performance measurements that can be used with the existing financial measurements to help executives in achieving a "balanced" view of the overall business. As for the "scorecard," it refers to a dashboard of given performance measures.
Over the years, the balanced scorecard, or BSC, has grown to become a complete strategic planning and management system that equips the business with an assessment of its vision, and its strategy. It also helps in performing them. It is the deployment of strategic planning at the core of a business, and a sign of progress toward better business control and management. According to (Kaplan, and Norton, 1992) [19] , BSC is a tool to provide information to the company's management to be used in the strategy formulation, implementation, and evaluation. The balanced scorecard has four highly interlinked perspectives to concentrate on: financial, customer, internal business processes, learning and growth. Also, a well prepared balanced scorecard must mirror the strategy of the company; therefore BSC should contain the following factors: strategic preferences, strategic objectives, measures about the strategy's accomplishment, company's targets on the short and long terms and finally initiatives related to strategy (Balanced Scorecard Institute, 2018).

Procedures and methodology 3.1 Methodology
A cross-sectional study was conducted by focusing on managers. The collected data was performed using a structured questionnaire. The researcher obtained two hundred sixty-two valid questionnaires. Cronbach's alpha and Factor analysis were adopted to test the reliability of data, and two tests preceded factor analysis: Kaiser-Meyer-Olkin (KMO) test of sampling adequacy, and Bartlett's test of sphericity to test the existence of interrelations between the items of the questionnaire supported by previous valid and reliable researches to obtain construct validity. The researcher used multiple regressions on the relationship between collaborative leadership and organizational performance.

A Conceptual framework for analyzing data
For analyzing data, the researcher adopted descriptive statistics, Kaiser-Meyer-Olkin (KMO) test, bartlett's test of sphericity, reliability analysis, Cronbach's alpha, and factor analysis.

Population and Sample Selection
The researcher in this article chose a sampling frame composed of professionals in businesses. The findings are based on responses of 262 managers (Sample Size), and the sampling technique is a simple random sampling. Comparison with data from other sources for this population proves that the sample is representative.

Findings
The researcher constructed for this thesis a questionnaire that consists of demographic characteristics in addition to two parts measuring the following dimensions:

Collaborative Leadership 2. Organizational Performance
Each scale in the nine parts of the questionnaire was scored using a 5-point Likert Scale ranging as follows:  Strongly Agree (5-SA).

Factor Analysis and Construct Validation
Factor analysis was adopted by the researcher, in addition to two statistical tests administered to decide the appropriateness of factor analysis.  Kaisers-Meyer-Olkin (KMO) measure of sampling adequacy: 0.945 > 0.50  bartlett's test of sphericity (Chi-Square = 8811.662, P= 0.00), and bartlett's test of sphericity was significant Therefore there are sufficient inter-correlations within the items which allow the use of factor analysis. The first factor accounts for 40.801 percent of total variance and is defined by sixteen items with factor loadings close to 0.70: Q2: Management in our company creates a sense of community among employees. Q3: Management in our company promotes teamwork rather than individual decision making Q4: Management in our company spends the time to form friendly relationships with employees Q5: Management in our company does not consider itself above the employees Q6: Management in our company allows employees to do what they do well Q7: Management in our company involves employees in suggesting new ideas Q8: Management in our company listens to employees Q9: Management in our company enhances employees' problem-solving skills Q10: Management in our company does what it promises to Q11: Management in our company makes me feel like I work with him/her, not for him/her Q12: Employees in our company feel recognized Q13: Employees in our company feel valued Q16: Employees in our company are trained to be creative Q18: Everyone's concerns in our company are freely expressed Q17: Employees in our company are rewarded for suggesting new product or service Q21: Everyone's point of view in our company is freely expressed The researcher in this thesis will call factor one "Collaborative Leadership". The second factor accounts for 4.529 percent of total variance and is defined by its three items with factor loadings close to 0.70: Q43: Productivity of employees in our company is much lower than the industry average Q44: Trust among employees themselves in our company is weak Q45: The number of customer complaints within the last period has increased strongly The researcher in this thesis will call factor two "Organizational Performance".

Reliability Analysis and Cronbach Alpha Scale: Organizational Performance
The below tables from 4.1 till 4.4 show that the dimension entitled "Organizational Performance" is highly reliable with Cronbach's alpha equals 0.789.

Testing the Relative Importance of the Independent Variables to the Explained Variation in the Dependent Variable
The previous section showed that the instrument (questionnaire) used to collect data for this thesis is highly reliable and significant. The researcher concludes that it is safe and recommended to use the collected data for statistical analysis.
Multiple regression analysis in this study allows the researcher to express the dimension previously identified in factor analysis as a dependent variable in terms of a set of independent variables which the researcher theoretically believed to be related to the dependent variable.

Conclusion and recommendations 5.1 Conclusion
For performance, organizational leadership is an essential factor. Improved performance will result in a competitive advantage and higher outcomes of the company. Collaborative leadership will promote organizational performance to be able to remain competitive and survive, and it will impact the whole organization.

Recommendations
Companies must increase the number of collaborative leaders, and develop them continually, and these leaders will develop the people inside their diverse functions, inspiring them, showing collaboration, reaching the best in individuals, and preventing teams from being stuck in debates. Companies must reward, and motivate high performing collaborative leaders. Business leaders must promote learning, and commitment to the whole process of improvement, and at the same time, they must help others to grow and develop. Future researchers are recommended to study organizational performance from a multidimensional perspective, and researchers may collect data from different countries, and employees at different organizational levels.