Fostering individual-level absorptive capacity and adaptive performance through leadership context

Purpose This study aims to examine the effects of trait goal orientations (mastery, performance-prove and performance-avoid goals) on individual-level absorptive capacity (AC), ultimately adaptive performance. This study also explores the cross-level moderating effects of transformational leadership climate on these mediated relationships. Design/methodology/approach Data from 480 participants in 76 teams from accounting firms in Northeast Thailand were analyzed using the multilevel method. Findings Findings showed support for positive indirect effects from approach-related goal orientations (mastery and performance-prove) to adaptive performance via AC and a negative indirect effect from avoid goal orientation to adaptive performance via AC. Results showed that a transformational leadership climate strengthens the relationship between goal orientations and AC, but only when team members have a high level of approach-related goals. Originality/value This study extends previous work by providing an understanding of how a transformational leadership context and the differences in goal orientations interact to promote or impede an individual's AC. It also extends our understanding of the mechanism of how AC mediated the effects of trait goal orientations and transformational leadership climate on adaptive performance.