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ABSTRACTIn today?s challenging and turbulent world, strategic management prescribes
organizations to develop resources and capabilities in order to gain competitive
advantage. The central question has been how to find ways and means to improve the
performance of the organization. Among many capabilities which could be developed
by the organization, the ability of the leaders to motivate and/or inspire members ofthe
team and/or workers to perform in their jobs and beyond the scope of their jobs, is
being researched here.
This dissertation studies how leadership by focusing at the bottom level of the
organization and by using various influence tactics, can create Organizational
Citizenship Behavior among the employees; in so doing, it could increase the overall
performance of the organization. The research is done in a Indonesian entity, a publicly
listed distribution company of a large pharmaceutical business group, operating through
40 branches across Indonesia, from Banda Aceh to J ayapura. The target population for
research is 460 marketing Eelds and staff members of the company, who have filled-in
some comprehensive questionnaires.
The research combines and extends three existing theories, the Leader-Member
(LMX) Theory, the lntluence Theory, and the Organizational Citizenship Behavior
(OCB) Theory. It also utilized eleven (11) influence tactics, and the OCB related to the
organization. The dissertation contirms this new extension of theories by demonstrating
the existence of the linkages (or mediations) between various variables of the model. It
has tested fifteen (15) sets of hypotheses. Most of the hypotheses have been confirmed
and the relationships between the variables are signiiicant.
Throughout the research, it was found that some speciitic iniluenee tactics
(inspirational appeal, personal appeal, consultation, collaboration, rational, appraising,
ingratiation, exchange or legitimation) are the most effective tactics used by the leaders
to motivate the subordinates performing in their jobs, and beyond the scope of their
jobs (OCR). The subordinates may help their colleagues; they may participate in many
social or informal activities beneficial to the organization culture; they may try to
protect the assets or properties of the organization, etc. With such an extraordinary
performance, they will contribute in their aggregate efforts to increase the level of
performance of the company as a whole. Other influence tactics such as coalition and
pressure do not develop OCB.
Equally important, it was demonstrated empirically that the ranking of OCB-
Organjzation Indexes is significantly correlated with the ranking of Total Sales of the
40 business units. It means that OCB-Organization can create high Total Sales, and
therefore high organization performance.
The contribution to the advancement of strategic management are (1) a new
extension of theories by combining three existing theories, (2) the practical
implementation of the Endings of this research in the day to day leadership and
management of a business organization, with focus at the bottom level, (3) the first
time application of such model in Indonesia, and (4) the opportunity to generalize the
application of the extension of theories, leading to a possible new theory to be called
?LMX-Organization Perfomance Theory?, and further practical implications, the result
of which would contribute meaningfully to the improvement in the quality of
management of organizations."
