Abstract

This quantitative causal-comparative study examined whether, and to what extent, differences exist between Transformational and Transactional leadership styles in influencing organizational readiness for AI adoption in mortgage underwriting in the United States. The study was grounded in three theoretical frameworks: the Technology-Organization-Environment (TOE) framework, and the theories of Transformational and Transactional leadership. Leadership style was assessed using the Multifactor Leadership Questionnaire (MLQ), while AI readiness was measured through a TOE-based survey.

Eight research questions guided the analysis. The primary focus (RQ8) was to determine if a significant difference exists in overall AI readiness between the two leadership styles. Additional questions (RQ1-RQ7) explored differences in specific TOE dimensions: Relative Advantage, Compatibility, Top Management Support, Organizational Size, Resources, Competitive Pressure, and Government Regulation. A two-tailed t-test was used for analysis, with statistical significance set at p < 0.05.

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