The Impact of Transformational Leadership on Employee Retention: Mediation and Moderation Through Organizational Citizenship Behavior and Communication

Abstract

This study investigates the impact of transformational leadership on employee retention in small-and medium-sized enterprises (SMEs) and probes the mediating role of organizational citizenship behavior (OCB) and the moderating role of communication. Data were collected using convenience sampling from 505 employees of SMEs. A Smart PLS structural equation modeling (PLS-SEM) was used to estimate the various relationships. The findings of the study reveal a positive and significant relationship between transformational leadership and OCB. Similarly, this study finds a positive and significant relationship in OCB and employee retention. In addition, OCB had a positive mediating effect on the relationship between transformational leadership and employee retention. Furthermore, communication positively moderates the transformational leadership-OCB and OCB-employee retention relationships. Leaders at SMEs should implement the traits of transformational leadership such as developing a compelling vision for employees, focusing on goal achievement, having problem-solving techniques, having a sense of purpose, and spending time on the training and development of the team to enhance OCB and employee retention.

Impact of supervisory behavior on sustainable employee performance: Mediation of conflict management strategies using PLS-SEM

“…For instance, person-oriented and task-oriented supervisory skills are substantial towards job satisfaction and employee retention. Multiple studies have examined the impact of SB on outcomes such as employees' moods and psychological well-being [37,23] supervisor support on employee retention [34]; SB (transformational leadership) on employee retention [38] similarly, studies have found lower levels of job satisfaction in the result of abusive supervision. Past research has thoroughly examined core concepts related to SEP affected by SB (leadership).…”

Association between transformational leadership, organizational commitments, and application of Total Quality Management (TQM) to employee performance in Sanglah General Hospital, Bali, Indonesia

“…The results of this study, which explain that empirically transformational leadership has a positive and significant effect on employee performance, is in line with research conducted by previous studies. 2,11,12 The independent variable of transformational leadership has a positive relationship with employee performance, which means that a leader is influential in transforming employee behavior into someone capable and highly motivated to increase work performance and quality, which ultimately the goals of the organization can be achieved. A transformational leadership is a leader with a desire to prioritize the interests of the organization and the interests of his subordinates rather than his own so that he can inspire his subordinates and is able to motivate his subordinates to improve their work methods and innovate by finding new ways to maximize the implementation of their duties.…”

Effects of Financial Rewards, Parents and Peers, and Benefits and Costs on Choosing Accounting Career: A Global Perspective

“…An analysis of the results involves several tests mainly related to reliability, validity, and path coefficients, and to ensure the data is free from multicollinearity and other data related bias (Tian et al, 2020). According to , the analysis section used a two-way approach to assess the results.…”

“…The full collinearity approach was used to measure the common method bias. According to Tian et al (2020), most importantly, in PLS-SEM inner variance inflation factor, VIF is used to detect the evidence of CMB. The results revealed that CMB was not a concern since the VIFs were less than 3 (Hair et al, 2011) (refer Table 3).…”