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Purpose

– The purpose of this paper is to examine the extent to which chief executive officer (CEO) transactional and transformational leader behaviors as well as CEO self-enhancing versus self-transcendent values permeate through the organization to influence middle-level managers.

Design/methodology/approach

– Using a multi-level longitudinal design, the authors collected self-reported value data from 32 CEOs and 119 top management team (TMT) members rated their CEOs on transactional and transformational leader behaviors at Time 1; 18 months later, TMTs rated the in-role behaviors and organizational citizenship behaviors (OCBs) of 331 mid-level managers. Also, at Time 2, mid-level managers evaluated their relationship with the organization in terms of economic and social exchange. HLM was used to analyze the data.

Findings

– The authors found the positive relationship between transactional CEO leader behaviors and mid-level manager in-role behaviors to be enhanced when CEOs hold self-transcendent values, whereas this relationship was weakened by CEO self-enhancing values. Similarly, the relationship between CEO transformational leader behaviors and mid-level manager OCBs was found to be strengthened when leaders espoused self-transcendent values. Finally, the authors found that economic exchange mediated the relationship between the transactional leadership * self-enhancing values interaction term and mid-level manager in-role behaviors. Similarly, social exchange mediated the relationship between the transformational leadership * self-transcendent values interaction term and mid-level manager OCBs.

Originality/value

– Leadership/OB.

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