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Leadership through school management teams (SMT) requires principals to play a key role in promoting SMT effectiveness. According to the input–mediator–outcome model (Ilgen et al., 2005), the current research seeks to investigate the mediating role of SMT learning in the relationship between principal system thinking (PST) and SMT effectiveness. A three-source survey design with self-report and non-self-report data was used, from a randomly sample of 71 principals and 211 SMT members from elementary schools in Israel. Data were aggregated at the school level of analysis. The results from structural equation modelling and bootstrapping analysis indicated that team learning fully mediates the relationship between PST and SMT effectiveness, irrespective of students’ socioeconomic backgrounds. Theoretical and practical implications are discussed.