A study on the effect of transformational leadership on work motivation: A case of employees at small and medium enterprises in Vietnam

Abstract

This study examines effect of transformational leadership (TFL) on work motivation in Vietnam, through the mediating role of employee emotions (expressed by the effect of leader on employee satisfaction). This paper considers employee motivation using independent and intermediate varia-bles characterizing individuals and organizations. In order to find relationships between the selected variables, and to evaluate the role of the mediator, a technique of Explore Factor Analysis method (EFA) is sued with primary data collected from 286 among 317 employees currently working using regression models and 500 bootstrapping samples in order to quantify the role of the mediator. For the purposes of the analysis, the structural equation modelling (SEM) method was efficiency applied. The quantitative research was conducted in SMEs selected by stratification technique. In both cases the outcomes are significantly determined by employees’ motivation. This practical model demonstrates an influential relationship between TFL and work motivation. The study provides proof that the relations of transformational leadership have been shown to have a direct indirect influence on employee motivation, in which the mediator is the satisfaction which has direct impact on work motivation. The results of the research show strong evidences for policy makers and enterprises for management at SMEs as well as it contributes to literature review of behavior organization. Findings also strongly show implied solutions which would support for Vietnamese SMEs to improve stable job performance.

Keywords

• transformational leadership
• motivation
• satisfaction
• vietnam