How Do Happy Leaders Enhance Team Success? The Mediating Roles of Transformational Leadership, Group Affective Tone, and Team Processes1

Abstract

Extending previous research regarding the relationship between leader positive moods and team performance, the present study examined 2 mediating mechanisms that explain the leader positive moods–team performance linkage: transformational leadership, and positive group affective tone. Data were collected from 85 sales teams (85 team leaders, 365 team members). Structural equation modeling analyses were performed to test the hypotheses. The results showed that leader positive moods not only directly enhanced team performance, but also indirectly led to improved team performance through the explicit mediating process (i.e., transformational leadership) and the implicit mediating process (i.e., positive group affective tone). Theoretical and practical implications are discussed.