ABSTRACT In today?s challenging and turbulent world, strategic management prescribesorganizations to develop resources and capabilities in order to gain competitiveadvantage. The central question has been how to find ways and means to improve theperformance of the organization. Among many capabilities which could be developedby the organization, the ability of the leaders to motivate and/or inspire members oftheteam and/or workers to perform in their jobs and beyond the scope of their jobs, isbeing researched here.This dissertation studies how leadership by focusing at the bottom level of theorganization and by using various influence tactics, can create OrganizationalCitizenship Behavior among the employees; in so doing, it could increase the overallperformance of the organization. The research is done in a Indonesian entity, a publiclylisted distribution company of a large pharmaceutical business group, operating through40 branches across Indonesia, from Banda Aceh to J ayapura. The target population forresearch is 460 marketing Eelds and staff members of the company, who have filled-insome comprehensive questionnaires.The research combines and extends three existing theories, the Leader-Member(LMX) Theory, the lntluence Theory, and the Organizational Citizenship Behavior(OCB) Theory. It also utilized eleven (11) influence tactics, and the OCB related to theorganization. The dissertation contirms this new extension of theories by demonstratingthe existence of the linkages (or mediations) between various variables of the model. Ithas tested fifteen (15) sets of hypotheses. Most of the hypotheses have been confirmedand the relationships between the variables are signiiicant.Throughout the research, it was found that some speciitic iniluenee tactics(inspirational appeal, personal appeal, consultation, collaboration, rational, appraising,ingratiation, exchange or legitimation) are the most effective tactics used by the leadersto motivate the subordinates performing in their jobs, and beyond the scope of theirjobs (OCR). The subordinates may help their colleagues; they may participate in manysocial or informal activities beneficial to the organization culture; they may try toprotect the assets or properties of the organization, etc. With such an extraordinaryperformance, they will contribute in their aggregate efforts to increase the level ofperformance of the company as a whole. Other influence tactics such as coalition andpressure do not develop OCB.Equally important, it was demonstrated empirically that the ranking of OCB-Organjzation Indexes is significantly correlated with the ranking of Total Sales of the40 business units. It means that OCB-Organization can create high Total Sales, andtherefore high organization performance.The contribution to the advancement of strategic management are (1) a newextension of theories by combining three existing theories, (2) the practicalimplementation of the Endings of this research in the day to day leadership andmanagement of a business organization, with focus at the bottom level, (3) the firsttime application of such model in Indonesia, and (4) the opportunity to generalize theapplication of the extension of theories, leading to a possible new theory to be called?LMX-Organization Perfomance Theory?, and further practical implications, the resultof which would contribute meaningfully to the improvement in the quality ofmanagement of organizations. |