Impact of Transformational Leadership on System Exploration in the Mandatory Organizational Context

Organizational investments in such complex information systems as customer relationship management (CRM) systems have reached a record high. Unfortunately, underutilization of these sophisticated technologies hinders organizations from realizing the promised returns on investment. This study tackles this issue from the perspective of intention to explore, which refers to individual intentions to explore the technology and seek new ways of using it. Drawing upon insights from concepts of exploration, extra-role behavior, technology acceptance, and transformational leadership, this paper proposes a research model for employees’ intention to explore in mandatory organizational contexts, with special emphasis on the effect of transformational leadership. The model was examined in a large telecom service company that uses CRM information systems. The results suggest that transformational leadership, intrinsic motivation, and extrinsic motivation (i.e. perceived usefulness) directly affect employees’ exploratory intentions. Transformational leadership also indirectly influences intention to explore through individuals’ intrinsic motivation and computer self-efficacy.