Examining the effects of substitutes for leadership on performance outcomes

The study examined the role of substitutes for leadership within Australian local councils. Data from 177 local council employees indicated significant positive effects of some substitutes for leadership on performance outcomes. Furthermore, some substitutes for leadership moderated the effects of transactional leadership behaviours on performance outcomes, whereas another subcomponent of substitutes for leadership moderated the effects of social processes of leadership on performance outcomes. In addition, some substitutes for leadership partially mediated the relationship between transformational leadership and performance outcomes. Theoretical and managerial implications following on from this study are discussed. Key words: Australian local councils; substitutes for leadership; transformational leadership; social processes; performance outcomes; ICLUST - item clustering.