Purpose
This study examines how transformational leadership on the part of senior attorneys in law firms may affect their subordinate attorneys' performance in an industry experiencing both distinctive leadership challenges and widespread economic upheaval. Specifically, our multilevel theoretical model attempts to capture the moderated mediation relationships between transformational leadership, innovative climate, entrepreneurial orientation, and individual performance.
Design/methodology/approach
The study employs of a multilevel path analysis to examine the earlier described conceptual model utilizing primary data collected from 484 attorneys at 31 professional service firms.
Findings
The authors used multilevel path analysis to examine the existence and the extent of a multilevel mediation effect. They found that a firm's entrepreneurial orientation mediates the relationship between supervising attorneys' transformational leadership and individual attorneys' performances. The authors also found that the indirect effect of supervising attorneys' transformational leadership on individual attorneys' performances through entrepreneurial orientation is conditional on the degree of firm innovative climate.
Originality/value
The authors draw on theories of social learning to construct a dual-level theoretical model that connects domains within the leadership and entrepreneurship literatures. It does so by examining the relationships between the law firms' supervising attorneys' change-oriented leadership and their subordinate attorneys' billable hours during a period of severe economic disruption.
