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An Empirical Study of the Relationship between Transformational Leadership, Empowerment and Organizational Commitment

Author

Listed:
  • Ismail, Azman

    (Faculty of Defence & Management Studies, National Defence University of Malaysia, Kuala Lumpur. Malaysia,)

  • Mohamed, Hasan Al-Banna

    (Faculty of Defence & Management Studies, National Defence University of Malaysia, Kuala Lumpur. Malaysia,)

  • Sulaiman, Ahmad Zaidi

    (Faculty of Defence & Management Studies, National Defence University of Malaysia, Kuala Lumpur. Malaysia,)

  • Mohamad, Mohd Hamran

    (Faculty of Defence & Management Studies, National Defence University of Malaysia, Kuala Lumpur. Malaysia,)

  • Yusuf, Munirah Hanim

    (Faculty of Defence & Management Studies, National Defence University of Malaysia, Kuala Lumpur. Malaysia,)

Abstract

Organizational leadership literature highlights that transformational leadership has four salient features: intellectual stimulation, individualized consideration, individualized influenced attributed, and individualized influence behavior. The ability of leaders to properly implement this leadership style may have a significant impact on organizational commitment. More importantly, recent studies in this area reveal that effect of transformational leadership style on organizational commitment is indirectly affected by empowerment. The nature of this relationship is interesting, but little is known about the mediating effect of empowerment in organizational leadership literature. Therefore, this study was conducted to examine the influence of empowerment in the relationship between transformational leadership and organizational commitment using a sample of 118 usable questionnaires gathered from employees who have worked in one US subsidiary firm in East Malaysia, Malaysia. The results of exploratory factor analysis confirmed that the measurement scales used in this study satisfactorily met the standards of validity and reliability analyses. Further, the outcomes of Stepwise Regression analysis showed that the relationship between empowerment and transformational leadership positively and significantly correlated with the organizational commitment. Statistically, this result confirms that empowerment acts as a mediating variable in the relationship between transformational leadership and organizational commitment in the organizational sample. In addition, discussion, implications and conclusion are elaborated.

Suggested Citation

  • Ismail, Azman & Mohamed, Hasan Al-Banna & Sulaiman, Ahmad Zaidi & Mohamad, Mohd Hamran & Yusuf, Munirah Hanim, 2011. "An Empirical Study of the Relationship between Transformational Leadership, Empowerment and Organizational Commitment," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 2(1), pages 1-89, January.
  • Handle: RePEc:ris:buecrj:0033
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    Citations

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    Cited by:

    1. Tessa Basford & Lynn Offermann & Tara Behrend, 2014. "Please Accept My Sincerest Apologies: Examining Follower Reactions to Leader Apology," Journal of Business Ethics, Springer, vol. 119(1), pages 99-117, January.
    2. Nadeem Khalid & Munwar Hussain Pahi & Umair Ahmed, 2016. "Loosing Your Best Talent: Can Leadership Retain Employees? The Dilemma of the Banking Sector of Hyderabad Sindh, Pakistan: A Mediation Investigation," International Review of Management and Marketing, Econjournals, vol. 6(3), pages 608-616.
    3. Joe Duke II, 2013. "An examination of the Business Strategy and Transformational Leadership symbiosis," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 3(12), pages 12-19, December.

    More about this item

    Keywords

    Transformational leadership; Empowerment; Organizational commitment;

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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