European Journal of Management Issues (Jun 2023)
The Role of Transformational and Transactional Leadership on Turnover Intentions in Tanzania Commercial Banks
Abstract
Purpose: This study aimed at examining the role of transformational and transactional leadership on turnover intentions in Tanzania commercial banks. Further, the study examined the moderating effect of perceived organizational support. Design/Method/Approach: The study used a quantitative approach. Data were collected from 231 employees working in head offices of three commercial banks in Tanzania. Data were analyzed using descriptive and inferential statistics. Findings: The study found that both transformational and transactional leadership are used in the commercial banks. Further, each leadership style plays a significant role in reducing turnover intentions. Perceived organizational support was also found to be a significant moderator of the relationship between each leadership style and turnover intentions Theoretical Implications: This study extends the literature on the role of relationship between transformational and transactional leadership on turnover intentions in Tanzania commercial banks. Practical Implications: This shows that both commercial banks have to make use of both transformational and transactional leadership styles in order to obtain positive outcomes in retaining their employees. Moreover, better results could be achieved once employees perceive presence of organizational support Originality/Value: As per the existing empirical literature it is the first study to be conducted in Tanzanian context Research Limitations/Future Research: This study used a quantitative method only. Future studies may consider using a mixed approach to get more insights from the respondents. Data collection was done in three commercial banks in Tanzania. A more comprehensive study which will be done in bank branches is therefore recommended.
