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The Role of Transformational Leadership and Psychological Capital in the Hotel Industry: A Sustainable Approach to Reducing Turnover Intention

Author

Listed:
  • Daria Gom

    (Labuan Faculty of International Finance, Universiti Malaysia Sabah, Labuan 87000, Malaysia)

  • Tek Yew Lew

    (Faculty of Business, Curtin University Malaysia, Miri 98009, Malaysia)

  • Mary Monica Jiony

    (Labuan Faculty of International Finance, Universiti Malaysia Sabah, Labuan 87000, Malaysia)

  • Geoffrey Harvey Tanakinjal

    (Labuan Faculty of International Finance, Universiti Malaysia Sabah, Labuan 87000, Malaysia)

  • Stephen Sondoh

    (Faculty of Business, Economics & Accountancy, Universiti Malaysia Sabah, Kota Kinabalu 88400, Malaysia)

Abstract

With the high level of importance placed on service delivery and the elevated turnover rate experienced in the hotel industry, this study was conducted to explore the influences of perceived transformational leadership on the cross-cultural psychological capital and turnover intentions of frontline employees working in four- and five-star hotels in Sabah, Malaysia. Data were collected from 162 frontline employees using the purposive sampling method. Partial least squares structural equation modeling (PLS-SEM) was performed to test the hypothesized relationships. The findings clearly demonstrate that transformational leadership positively affects cross-cultural psychological capital and negatively influences turnover intention. Cross-cultural psychological capital, on the other hand, has no substantial link with turnover intention and does not act as a mediator between transformative leadership and turnover intention. This study extends the hospitality literature by offering a new conceptual model representing the perceptions of frontline employees toward transformational leadership and cross-cultural psychological capital that influence the turnover intention of these employees based on the job demands–resources and conservation of resources theories. These findings have implications for the advancement of transformational leadership and cross-cultural psychological capital toward a sustainable approach to reducing employee turnover in the hotel industry.

Suggested Citation

  • Daria Gom & Tek Yew Lew & Mary Monica Jiony & Geoffrey Harvey Tanakinjal & Stephen Sondoh, 2021. "The Role of Transformational Leadership and Psychological Capital in the Hotel Industry: A Sustainable Approach to Reducing Turnover Intention," Sustainability, MDPI, vol. 13(19), pages 1-20, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:10799-:d:645605
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    References listed on IDEAS

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    Cited by:

    1. Syed Usman Qadri & Muhammad Amjad Bilal & Mingxing Li & Zhiqiang Ma & Safwan Qadri & Chengang Ye & Fawad Rauf, 2022. "Work Environment as a Moderator Linking Green Human Resources Management Strategies with Turnover Intention of Millennials: A Study of Malaysian Hotel Industry," Sustainability, MDPI, vol. 14(12), pages 1-20, June.

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