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Effects of transformational leadership on turnover intentions in IT SMEs

Author

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  • Swati Mittal

Abstract

Purpose - The purpose of this paper is to examine the impact of transformational leadership (TL) on building trust and hence, its influence on the commitment level of the employees to achieve the desired work outcomes. It also examined whether transformational leaders were able to psychologically empower employees so as to increase their commitment level and thus reduce the employee turnover intentions (TIs) in the small- and medium-sized (SME) IT companies operating in Delhi NCR, India. Design/methodology/approach - Data were collected from 420 employees (168 females and 252 males) of SME IT companies operational in Delhi NCR, India. They responded to questions about their leader’s TL and their own psychological empowerment (PE), commitment and trust. Findings - The findings of the study show that transformational leaders were able to create a higher level of PE and trust amongst their employees. Further, it was also found that this led to an increase in their commitment level and hence, a decrease in their TI. The findings of the study also suggest that trust, commitment and PE act as mediators. Research limitations/implications - Limited sample size is a possible limitation of the study. One more limitation of the study is the data collection method, i.e. through survey. It was self-reported, taking only the perspective of the employees; it may not be a completely accurate response. Practical implications - With TL, leaders can psychologically empower followers to do things in a better way and can develop trust in employees resulting in high commitment; highly committed employees in turn reduce the TIs. If followers do not have faith in their own capability, it may not be possible for them to complete their job effectively. Originality/value - This study adds to the existing literature; it clarifies the process by which transformational leaders enhance followers’ meaning in life through PE and develop trust resulting in high commitment.

Suggested Citation

  • Swati Mittal, 2016. "Effects of transformational leadership on turnover intentions in IT SMEs," International Journal of Manpower, Emerald Group Publishing Limited, vol. 37(8), pages 1322-1346, November.
  • Handle: RePEc:eme:ijmpps:ijm-10-2014-0202
    DOI: 10.1108/IJM-10-2014-0202
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    Citations

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    Cited by:

    1. Bhupendra Kumar Verma & Bikrant Kesari, 2020. "Does the Morale Impact on Employee Turnover Intention? An Empirical Investigation in the Indian Steel Industry," Global Business Review, International Management Institute, vol. 21(6), pages 1466-1488, December.
    2. Mittal, Swati & Dhar, Rajib Lochan, 2016. "Effect of green transformational leadership on green creativity: A study of tourist hotels," Tourism Management, Elsevier, vol. 57(C), pages 118-127.
    3. Francis Donkor & William Ansah Appienti & Ellen Achiaah, 2022. "The Impact of Transformational Leadership Style on Employee Turnover Intention in State-Owned Enterprises in Ghana. The Mediating Role of Organisational Commitment," Public Organization Review, Springer, vol. 22(1), pages 1-17, March.
    4. Hien Vo Van & Tu Thanh Hoai & Nha Nguyen Minh & Nguyen Phong Nguyen, 2023. "Green Transformational Leadership and Green Mindfulness as Contributors to Green Innovation and Environmental Performance: Evidence From Manufacturing Firms in Vietnam," SAGE Open, , vol. 13(3), pages 21582440231, August.
    5. Hin Chow Wong & Subramaniam Sri Ramalu & Francis Chuah, 2019. "The Relationship between Servant Leadership, Organizational Citizenship Behaviour, and Dysfunctional Turnover," International Business Research, Canadian Center of Science and Education, vol. 12(4), pages 110-122, April.

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