The Effects of CEOs’ Transformational Leadership and Educational Service Quality on Business Performance and Social Responsibility

Abstract

This study aims to examine the relationship between leadership, education and performance (LEP) using the theoretical framework by Cronin et al. (2000) on quality, value, satisfaction, and behavioral intentions (QVSB). This model was carried out based on the responses of 337 trainees of corporate education in Seoul, Republic of Korea. As a result of the analysis, transformational leadership (TL) was found to have a direct impact on business performance and social responsibility, whereas educational service quality (ESQ) did not have a direct impact on business performance, but had an indirect impact through employee satisfaction. The results imply that the QVSB model by Cronin et al.(2000) can be utilized in the service environment, while also being expanded management-wide according to different characteristics. Moreover, the consideration of not only the CEO’s leadership, but also educational service, are of great importance in the process of generating business performance and undertaking social responsibility.