The effect of transformational leadership style on employee performance in the service industry in Ho Chi Minh City: The mediating role of organizational commitment
Main Article Content
Abstract
The purpose of the study is to test the influence of transformational leadership style on employee performance through the role of organizational commitment in the service industry in Ho Chi Minh City. Research data was collected from employees of service industry enterprises in Ho Chi Minh City. After the data cleaning process, 572 samples were included in the official analysis using Smart PLS 3.3.3 software. Data analysis was performed through partial least squares structural equation modeling (PLS-SEM) in two stages, i.e., the measurement model and the structural model. The results confirm that transformational leadership has a positive impact on employee performance, while employee organizational commitment plays a mediating role. From there, it is concluded that some management implications are valuable references for service industry enterprises in Ho Chi Minh City to find solutions to increase the work efficiency of employees. The research includes the main contents of (i) problem statement, (ii) theoretical basis and research model, (iii) research method, (iv) research results, (v) conclusions and recommendations and (vi) limitations and future research directions.
Article Details
Keywords
Cam kết tổ chức, Hiệu quả làm việc, Lãnh đạo chuyển đổi
References
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Barling, J., Weber, T., & Kelloway, E. K. (1996). Effects of transformational leadership training on attitudinal and financial outcomes: A field experiment. Journal of Applied Psychology, 81(6), 827–832. https://doi.org/10.1037/0021-9010.81.6.827
Bartlett, K. R. (2001). The relationship between training and organizational commitment: A study in the health care field. Human Resource Development Quarterly, 12(4), 335. https://doi.org/10.1002/hrdq.1001
Bass, B. M. (1999). Two decades of research and development in transformational leadership. European Journal of Work and Organizational Psychology, 8(1), 9–32. https://doi.org/10.1080/135943299398410
Bottomley, P. A., Mostafa, A. M. S., Gould-Williams, J. S., & León-Cázares, F. (2015). The Impact of Transformational leadership on Organizational citizenship Behaviours: The contingent role of public service motivation. British Journal of Management, 27(2), 390–405. https://doi.org/10.1111/1467-8551.12108
Chen, Z. X., & Aryee, S. (2007). Delegation and employee work outcomes: An Examination of the cultural context of mediating processes in China. Academy of Management Journal, 50(1), 226–238. https://doi.org/10.5465/amj.2007.24162389
Curry, J., Wakefield, D. S., Price, J. L., & Mueller, C. W. (1986). On the Causal Ordering of Job Satisfaction and Organizational Commitment. Academy of Management Journal, 29(4), 847–858. https://doi.org/10.5465/255951
Cummings, L. L., & Schwab, D. P. (1973). Performance in organizations: Determinants and appraisal. Glenview, IL: Scott, Foresman and company.
Clugston, M. (2000). The mediating effects of multidimensional commitment on job satisfaction and intent to leave. Journal of Organizational Behavior, 21(4), 477-486.
Dai, Y., Dai, Y., Chen, K., & Hui-Chun, W. (2013). Transformational vs transactional leadership: which is better? International Journal of Contemporary Hospitality Management, 25(5), 760–778. https://doi.org/10.1108/ijchm-dec-2011-0223
Dvir, T., Eden, D., Avolio, B. J., & Shamir, B. (2002). Impact of Transformational leadership on follower development and Performance: a field experiment. Academy of Management Journal, 45(4), 735–744. https://doi.org/10.5465/3069307
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equation models. Cham: Statistical Publishing Associates.
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Hair, J. F., Howard, M. C., & Nitzl, C. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of Business Research, 109, 101–110. https://doi.org/10.1016/j.jbusres.2019.11.069
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/ebr-11-2018-0203
Hettiararchchi, H. (2014). The effect of employee work-related attitudes on employee job performance: A study of tertiary and vocational education sector in Sri Lanka. http://repository.kln.ac.lk/handle/123456789/12003
Howell, J. M., Neufeld, D. J., & Avolio, B. J. (2005). Examining the relationship of leadership and physical distance with business unit performance. Leadership Quarterly, 16(2), 273–285. https://doi.org/10.1016/j.leaqua.2005.01.004
Jaramillo, F., Mulki, J. P., & Marshall, G. W. (2005). A meta-analysis of the relationship between organizational commitment and salesperson job performance: 25 years of research. Journal of Business Research, 58(6), 705–714. https://doi.org/10.1016/j.jbusres.2003.10.004
Joo, B., Yoon, H. J., & Jeung, C. (2012). The effects of core self‐evaluations and transformational leadership on organizational commitment. Leadership & Organization Development Journal, 33(6), 564–582. https://doi.org/10.1108/01437731211253028
Khang, L. A. (2013). Nghiên cứu phong cách lãnh đạo chuyển đổi: Sự tín nhiệm và gắn kết tổ chức trong bối cách Việt Nam. Tạp chí khoa học Đại học Mở Thành phố Hồ Chí Minh - Kinh tế và Quản trị kinh doanh, 8(2), 87-97. https://journalofscience.ou.edu.vn/index.php/econ-vi/article/view/1078
Kim, P. B., Lee, G., & Carlson, K. D. (2010). An examination of the nature of the relationship between Leader-Member-Exchange (LMX) and turnover intent at different organizational levels. International Journal of Hospitality Management, 29(4), 591–597. https://doi.org/10.1016/j.ijhm.2009.10.025
Koopmans, L., Bernaards, C., Hildebrandt, V., Van Buuren, S., Van Der Beek, A. J., & De Vet, H. (2014). Individual Work Performance Questionnaire [Dataset]. In PsycTESTS Dataset. https://doi.org/10.1037/t35489-000
Luthans, F. (2002). The need for and meaning of positive organizational behavior. Journal of Organizational Behavior, 23(6), 695–706. https://doi.org/10.1002/job.165
Meyer, J. P., Stanley, D. J., Herscovitch, L., & Topolnytsky, L. (2002). Affective, continuance, and normative commitment to the organization: a meta-analysis of antecedents, correlates, and consequences. Journal of Vocational Behavior, 61(1), 20–52. https://doi.org/10.1006/jvbe.2001.1842
Meyer, J. P., Paunonen, S. V., Gellatly, I. R., Goffin, R. D., & Jackson, D. N. (1989). Organizational commitment and job performance: It’s the nature of the commitment that counts. Journal of Applied Psychology, 74(1), 152–156. https://doi.org/10.1037/0021-9010.74.1.152
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Mangkunegara, A. a. P., & Huddin, M. (2016). The effect of transformational leadership and job satisfaction on employee performance. Universal Journal of Management, 4(4), 189–195. https://doi.org/10.13189/ujm.2016.040404
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Stup, R. E., Hyde, J., & Holden, L. (2006). Relationships between selected human resource management practices and dairy farm performance. Journal of Dairy Science, 89(3), 1116–1120. https://doi.org/10.3168/jds.s0022-0302(06)72180-4
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Almutairi, D. (2015). The Mediating Effects of Organizational Commitment on the Relationship between Transformational Leadership Style and Job Performance. International Journal of Business and Management, 11(1), 231-231. http://www.ccsenet.org/journal/index.php/ijbm/article/download/54223/29883
Bass, B. M. (1985). Leadership and Performance Beyond Expectations. https://doi.org/10.5465/amr.1987.4306754
Burud, S.; Tumolo, M. (2004). Leveraging the New Human Capital: Adaptive Strategies, Results Achieved, and Stories of Transformation; Davies-Black Publishing: Palo Alto, CA, U.S.A. Publishing: Palo Alto, CA, U.S.A. https://doi.org/10.5465/ame.2005.16965517
Barbuto, J. J. E. (2005). Motivation and transactional, charismatic, and transformational leadership: a test of antecedents. Journal of Leadership & Organizational Studies, 11(4), 26–40. https://doi.org/10.1177/107179190501100403
Barling, J., Weber, T., & Kelloway, E. K. (1996). Effects of transformational leadership training on attitudinal and financial outcomes: A field experiment. Journal of Applied Psychology, 81(6), 827–832. https://doi.org/10.1037/0021-9010.81.6.827
Bartlett, K. R. (2001). The relationship between training and organizational commitment: A study in the health care field. Human Resource Development Quarterly, 12(4), 335. https://doi.org/10.1002/hrdq.1001
Bass, B. M. (1999). Two decades of research and development in transformational leadership. European Journal of Work and Organizational Psychology, 8(1), 9–32. https://doi.org/10.1080/135943299398410
Bottomley, P. A., Mostafa, A. M. S., Gould-Williams, J. S., & León-Cázares, F. (2015). The Impact of Transformational leadership on Organizational citizenship Behaviours: The contingent role of public service motivation. British Journal of Management, 27(2), 390–405. https://doi.org/10.1111/1467-8551.12108
Chen, Z. X., & Aryee, S. (2007). Delegation and employee work outcomes: An Examination of the cultural context of mediating processes in China. Academy of Management Journal, 50(1), 226–238. https://doi.org/10.5465/amj.2007.24162389
Curry, J., Wakefield, D. S., Price, J. L., & Mueller, C. W. (1986). On the Causal Ordering of Job Satisfaction and Organizational Commitment. Academy of Management Journal, 29(4), 847–858. https://doi.org/10.5465/255951
Cummings, L. L., & Schwab, D. P. (1973). Performance in organizations: Determinants and appraisal. Glenview, IL: Scott, Foresman and company.
Clugston, M. (2000). The mediating effects of multidimensional commitment on job satisfaction and intent to leave. Journal of Organizational Behavior, 21(4), 477-486.
Dai, Y., Dai, Y., Chen, K., & Hui-Chun, W. (2013). Transformational vs transactional leadership: which is better? International Journal of Contemporary Hospitality Management, 25(5), 760–778. https://doi.org/10.1108/ijchm-dec-2011-0223
Dvir, T., Eden, D., Avolio, B. J., & Shamir, B. (2002). Impact of Transformational leadership on follower development and Performance: a field experiment. Academy of Management Journal, 45(4), 735–744. https://doi.org/10.5465/3069307
Geyery, A. L. J., & Steyrer, J. (1998). Transformational leadership and objective performance in banks. Applied Psychology, 47(3), 397–420. https://doi.org/10.1111/j.1464-0597.1998.tb00035.x
Garson, G. D. (2016). Partial least squares: regression and structural
equation models. Cham: Statistical Publishing Associates.
Hair, J. F., Black, W., Babin, B., & Anderson, R. (2014). Multivariate Data Analysis (S. Edition Ed.). United States of America: Pearson Education Limited.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd ed.). Thousand Oaks, CA: Sage Publications.
Hair, J. F., Howard, M. C., & Nitzl, C. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of Business Research, 109, 101–110. https://doi.org/10.1016/j.jbusres.2019.11.069
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/ebr-11-2018-0203
Hettiararchchi, H. (2014). The effect of employee work-related attitudes on employee job performance: A study of tertiary and vocational education sector in Sri Lanka. http://repository.kln.ac.lk/handle/123456789/12003
Howell, J. M., Neufeld, D. J., & Avolio, B. J. (2005). Examining the relationship of leadership and physical distance with business unit performance. Leadership Quarterly, 16(2), 273–285. https://doi.org/10.1016/j.leaqua.2005.01.004
Jaramillo, F., Mulki, J. P., & Marshall, G. W. (2005). A meta-analysis of the relationship between organizational commitment and salesperson job performance: 25 years of research. Journal of Business Research, 58(6), 705–714. https://doi.org/10.1016/j.jbusres.2003.10.004
Joo, B., Yoon, H. J., & Jeung, C. (2012). The effects of core self‐evaluations and transformational leadership on organizational commitment. Leadership & Organization Development Journal, 33(6), 564–582. https://doi.org/10.1108/01437731211253028
Khang, L. A. (2013). Nghiên cứu phong cách lãnh đạo chuyển đổi: Sự tín nhiệm và gắn kết tổ chức trong bối cách Việt Nam. Tạp chí khoa học Đại học Mở Thành phố Hồ Chí Minh - Kinh tế và Quản trị kinh doanh, 8(2), 87-97. https://journalofscience.ou.edu.vn/index.php/econ-vi/article/view/1078
Kim, P. B., Lee, G., & Carlson, K. D. (2010). An examination of the nature of the relationship between Leader-Member-Exchange (LMX) and turnover intent at different organizational levels. International Journal of Hospitality Management, 29(4), 591–597. https://doi.org/10.1016/j.ijhm.2009.10.025
Koopmans, L., Bernaards, C., Hildebrandt, V., Van Buuren, S., Van Der Beek, A. J., & De Vet, H. (2014). Individual Work Performance Questionnaire [Dataset]. In PsycTESTS Dataset. https://doi.org/10.1037/t35489-000
Luthans, F. (2002). The need for and meaning of positive organizational behavior. Journal of Organizational Behavior, 23(6), 695–706. https://doi.org/10.1002/job.165
Meyer, J. P., Stanley, D. J., Herscovitch, L., & Topolnytsky, L. (2002). Affective, continuance, and normative commitment to the organization: a meta-analysis of antecedents, correlates, and consequences. Journal of Vocational Behavior, 61(1), 20–52. https://doi.org/10.1006/jvbe.2001.1842
Meyer, J. P., Paunonen, S. V., Gellatly, I. R., Goffin, R. D., & Jackson, D. N. (1989). Organizational commitment and job performance: It’s the nature of the commitment that counts. Journal of Applied Psychology, 74(1), 152–156. https://doi.org/10.1037/0021-9010.74.1.152
Morris, J. H., & Sherman, J. D. (1981). Generalizability of an organizational commitment model. Academy of Management Journal, 24(3), 512–526. https://doi.org/10.5465/255572
Motowidlo, S. J., & Kell, H. J. (2012). Handbook of psychology. New York, NY: Wiley.
Mosadeghrad, A.M. (2003). The role of participative management (suggestion system) in Shahid Fayazbakhsh Hospital effectiveness and efficiency, Research in Medical Sciences, 8(3) 85-89.
Mangkunegara, A. a. P., & Huddin, M. (2016). The effect of transformational leadership and job satisfaction on employee performance. Universal Journal of Management, 4(4), 189–195. https://doi.org/10.13189/ujm.2016.040404
Nehmeh, R. (2009). What is organizational commitment, why should managers want it in their workforce and is there any cost-effective way to secure it. Swiss Management Center, 5, 45-46. http://www.swissmc.at/Media/Ranya_Nehmeh_working_paper_05-2009.pdf
Porter, L. W., Steers, R. M., Mowday, R. T., & Boulian, P. V. (1974). Organizational commitment, job satisfaction, and turnover among psychiatric technicians. Journal of Applied Psychology, 59(5), 603–609. https://doi.org/10.1037/h0037335
Purwanto, A., Asbari, M., & Santoso, P. B. (2019). Does culture, motivation, competence, leadership, commitment influence quality performance? Inovbiz: Jurnal Inovasi & Bisnis, 7(2), 201. https://doi.org/10.35314/inovbiz.v7i2.1210
Purwanto, A., Wijayanti, L. M., Hyun, C. C., & Asbari, M. (2020). The effect of tansformational, transactional, authentic and authoritarian leadership style toward lecture performance of private university in tangerang. Dinasti International Journal of Digital Business Management, 1(1), 29–42. https://doi.org/10.31933/dijdbm.v1i1.88
Ringle, C. M., Wende, S., & Becker, J. M. (2015). SmartPLS 3. Boenningstedt. SmartPLS GmbH. https://www.smartpls.com/. SmartPLS GmbH.
Saks, A. M. (2006). Antecedents and consequences of employee engagement. Journal of Managerial Psychology, 21(7), 600–619. https://doi.org/10.1108/02683940610690169
Schepers, J. J., Wetzels, M., & De Ruyter, J. K. (2005). Leadership styles in technology acceptance: do followers practice what leaders preach? Managing Service Quality, 15(6), 496–508. https://doi.org/10.1108/09604520510633998
Selig, J. P., & Preacher, K. J. (2009). Mediation models for longitudinal data in developmental research. Research in Human Development, 6(2–3), 144–164. https://doi.org/10.1080/15427600902911247
Stup, R. E., Hyde, J., & Holden, L. (2006). Relationships between selected human resource management practices and dairy farm performance. Journal of Dairy Science, 89(3), 1116–1120. https://doi.org/10.3168/jds.s0022-0302(06)72180-4
Suliman, A., & Iles, P. (2000). Is continuance commitment beneficial to organizations? Commitment‐performance relationship: a new look. Journal of Managerial Psychology, 15(5), 407–422. https://doi.org/10.1108/02683940010337158
Suliman, A. M. T. (2002). Is it really a mediating construct? Journal of Management Development, 21(3), 170–183. https://doi.org/10.1108/02621710210420255
Saetang, J., Sulumnad, K., Thampitak, P., & Sungkaew, T. (2010). Factors affecting perceived job performance among staff: A case study of Ban Karuna Juvenile Vocational Training Centre for boys. The Journal of Behavioral Science, 5(1), 33-45. Retrieved from https://so06.tci-thaijo.org/index.php/IJBS/article/view/2200
Rusmawati, P., & Indriati, F. (2020). Examine the relationship among transformational leadership, organizational commitment and work engagement on employee performance. International Journal of Management, 11(8), 1003-1013. https://doi.org/10.34218/IJM.11.8.2020.091
Thamrin, H. M. (2012). The influence of transformational leadership and organizational commitment on job satisfaction and employee performance. International Journal of Innovation, Management and Technology, 3(5), 566-572. https://doi.org/10.7763/ijimt.2012.v3.299
Tse, H. H. M., & Chiu, W. C. K. (2014). Transformational leadership and job performance: A social identity perspective. Journal of Business Research, 67(1), 2827–2835. https://doi.org/10.1016/j.jbusres.2012.07.018
Vigoda‐Gadot, E. (2007). Leadership style, organizational politics, and employees’ performance. Personnel Review, 36(5), 661–683. https://doi.org/10.1108/00483480710773981
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