The Impact Mechanism of Transformational Leadership Style on Exploitative and Exploratory Learning of ERP Systems

Transformational leadership has been identified as one of the most critical factors in ERP success. However, few studies have explored how transformational leadership impacts ERP success, especially in the assimilation phase. Drawing from organizational learning and leadership theories, we submit that transformational leadership is positively related to exploitative and exploratory learning, mediated by three types of organizational learning culture. We developed a theoretical model and collected data from top and middle managers of 101 organizations in China that have used ERP systems for at least one year. Our results suggest that (1) transformational leadership is positively related with psychological safety, openness to opinions, and participation in decision making learning culture; (2) the learning culture of psychological safety and participation in decision making partially mediates the relationship between transformational leadership and exploitative learning of ERP systems; (3) the learning culture of participation in decision making and open to opinions partially mediates the relationship between transformational leadership and exploratory learning of ERP systems. These results provide guidelines for top managers to exercise specific leadership behaviors and promoteappropriate organizational learning culture, in order to realize the ambidexterity of exploitative and exploratory learning of ERP systems to achieve long term ERP success.