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International Journal of Multidisciplinary Research and Development
138
International Journal of Multidisciplinary Research and Development
Online ISSN: 2349-4182, Print ISSN: 2349-5979; Impact Factor: RJIF 5.72
Received: 17-11-2018; Accepted: 19-12-2018
www.allsubjectjournal.com
DOI: https://doi.org/10.22271/ijmrd.2019.v6.i1.25
Volume 6; Issue 1; January 2019; Page No. 138-144
Effects of collaborative leadership on organizational performance
Georges Y Maalouf
Arts, Sciences and Technology University in Lebanon, Lebanon
Abstract
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.
Keywords: organizational leadership, collaborative leadership, organizational performance
1. 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.
1.1 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.
1.2 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.
1.3 Statement of the Research Question
The research question of this article is: “What is the impact
of collaborative leaders on organizational performance?”
2. 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.
International Journal of Multidisciplinary Research and Development
139
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 decision-
making.
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.
2.1.2 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.
2.1.3 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
International Journal of Multidisciplinary Research and Development
140
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.
2.1.4 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].
2.1.5 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.
2.2 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].
2.2.2 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
International Journal of Multidisciplinary Research and Development
141
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].
2.2.3 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).
3. 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.
3.2 Variables of this study
“Leadership” is the independent variable, while
“Organizational Performance” is the dependent variable.
Various questions from a questionnaire adopting a Likert 5-
point type scale measure each variable.
The independent variable “Leadership” is measured by 16
statements taken from previous researches: (Luthans, 2014)
[25]; (Kouzes, 2009) [21]; (Sherwin, 2014) [30]; (Folkman, 2012)
[14]; (Bride, 2013) [5]; (MindTools, 2015) [28]; (Zhang & Sims,
2005) [33]; (Ancona, 2005) [2]; (Goleman, 2000) [15]; (Burns,
1978) [7].
The dependent variable “Organizational Performance” is
measured by three statements taken from previous
researches: (Sherwin, 2014) [30]; (Folkman, 2012) [14];
(Hansen & Ibarra, 2011) [17]; (Prime, 2014) [29]; (Goleman,
2000) [15]; (Kaplan, and Norton, 1992); (AMA, 2007) [1].
3.3 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.
3.4 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.
4. Findings
The researcher constructed for this thesis a questionnaire that
consists of demographic characteristics in addition to two
parts measuring the following dimensions:
1. 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 Disagree (1-SD)
Disagree (2-D)
International Journal of Multidisciplinary Research and Development
142
Undecided (3-U)
Agree (4-A)
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.
Table 1: Case Processing Summary
Case Processing Summary
N
%
Cases
Valid
262
100.0
Excludeda
0
.0
Total
262
100.0
a. Listwise deletion based on all variables in the procedure.
Table 2: Reliability Statistics
Reliability Statistics
Cronbach's
Alpha
Cronbach's Alpha Based on
Standardized Items
N of
Items
.789
.789
3
Table 3: Item Statistics
Item Statistics
Mean
Std. Deviation
N
Q43_ Productivity of employees in our company is much lower than the industry average
2.4046
1.14657
262
Q44- Trust among employees themselves in our company is weak
2.5611
1.28731
262
Q45_ The number of customer complaints within the last period has increased strongly
2.3435
1.19879
262
Table 4: Summary Item Statistics
Summary Item Statistics
Mean
Minimum
Maximum
Range
Maximum / Minimum
Variance
N of Items
Item Means
2.436
2.344
2.561
.218
1.093
.013
3
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.
Leadership affects organizational performance
Table 5: Model Summary
Model Summary
Model
R
R Square
Adjusted
R Square
Std. Error of
the Estimate
1
.376a
.142
.114
.94102738
a. Predictors: (Constant), REGR factor score 1 for analysis
1_Leadership
International Journal of Multidisciplinary Research and Development
143
Table 6: ANOVA
Anova
Model
Sum of Squares
df
Mean Square
F
Sig.
1
Regression
36.960
8
4.620
5.217
.000b
Residual
224.040
253
.886
Total
261.000
261
a. Dependent Variable: REGR factor score 2 for analysis 1 _ Performance
b. Predictors: (Constant), REGR factor score 1 for analysis 1 _ Leadership
Table 7: Coefficients
Coefficientsa
Model
Unstandardized Coefficients
Standardized Coefficients
t
Sig.
B
Std. Error
Beta
1
(Constant)
-4.235E-17
.058
.000
1.000
REGR factor score 1 for analysis 1 _ Leadership
-.180
.075
-.180
-2.399
.017
a. Dependent Variable: REGR factor score 3 for analysis 1 _ Performance
5. 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.
5.2 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.
6. References
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American Management Association, 2007.
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