The Impact of Transformational Leadership on Employee Turnover Intention: The Mediating and Moderating Role of Affective Organizational Commitment and Job Embeddedness

Abstract

The influence of transformational leadership (TL) on employee turnover intention (ETI) in SMEs is explored in this research, including the mediating and moderating function of affective organizational commitment (AC) and job embeddedness (JE). Data was obtained from 456 workers of SMEs using convenience sampling. The numerous associations were estimated using Smart PLS structural equation modelling (PLS-SEM). The study's findings indicate that transformative leadership and ETI have a negative and substantial association. Consequently, AC and JE mediated the association between transformative leadership and employee turnover intention. Lastly, the transformative leadership and employee turnover connections are favorably moderated by job embeddedness. To improve JE and AC and reduce employee turnover, SMEs should implement transformational leadership abilities such as developing a compelling vision for the workforce, fixating on goal attainment, having conflict approaches, a feeling of belonging, and interacting on staff professional development. Leaders should employ transformational leadership traits include creating a vision statement for employees, emphasizing on desired outcomes, implementing challenge solutions, having a purpose and direction, and devoting time to team professional development.

Keywords

• employee turnover intention
• transformational leadership
• affective organizational commitment
• job embeddedness