Study On The Relationship Among Leadership Style, Conflict And The New Venture Performance

In this era of highly developed and diversified economy, more entrepreneurschoose to complete their venture dreams. The new ventures are not only the impetusfor China economy development, but also a key to the employment problem. How toenhance the new venture performance is a tremendously significant problem in China.It is of paramount significance to study the impacting mechanisms of leadership onconflicts and thus on the new venture performance, both theoretically and practically.Based on the literature reviews, this work built an intermediate model ofleadership style’s influence on the new venture performance with three variables (i.e.conflict, leadership style and the new venture performance) to study on theintermediation of different conflicts (i.e. task conflict and relational conflict) betweenleadership styles (i.e. transformational and transactional leadership) and the newventure performance. With the method of confirmatory factor analysis, regressionanalysis, and intermediate test, we demonstrate the intermediation of task conflictbetween transformational leadership and the new venture performance. This workconstitutes several recommendation on the policy of the new ventures.This work issued questionnaires on the leaders and staffs in the new venture, andfinally obtained280effective ones. Based on the questionnaires and correlationanalysis, we can draw conclusions as followed. Both transformational andtransactional leadership have a positive effect on the new venture performance, theformer one has a more striking effect; there is a remarkable positive correlationbetween task conflict and transformational leadership, while no remarkable positivecorrelation between relational conflict and transactional leadership; task conflict playsan intermediate role between transformational leadership and the new ventureperformance. Leaders in new ventures should transfer their leadership styles, view theconflicts objectively, and build a perfect conflict management mechanism.Leadersshould initiate more task conflicts, restrain relational conflicts to enhance new ventureperformance.