Providing Service During a Merger: The Role of Organizational Goal Clarity and Servant Leadership

Organizations operate in dynamic environments, which not only requires organizations to adjust, but also for employees to adapt quickly to align with new or adjusted organizational goals. Servant leadership has been shown to help employees develop and grow and behave in a moral and fair manner which are important elements for successful change. We aim to provide a further understanding of the associations between servant leadership and organizational outcomes during changing times. Drawing on the theories of social exchange and goal-setting, and the norm of reciprocity, we propose the mediating role of organizational goal clarity in the associations between servant leadership and five organizational outcomes. The hypotheses are tested in four studies: a two-wave time-lagged survey study conducted in a service company going through a merger, and three experimental studies. The results show that servant leadership relates positively to goal clarity and negatively to uncertainty of employees during organizational change. Furthermore, organizational goal clarity positively mediates the associations between servant leadership and employees’ organizational change commitment and service performance (e.g., organizational citizenship behavior, customer service and customer orientation). This investigation provides a theoretical and empirical validation of a mechanism through which servant leaders enhance organizational performance during changing times.