Document Type : Original Research
Authors
1 Raffles University Iskandar, Johor Bahru, Johor, Malaysia
2 Faculty of Business, Raffles University Iskandar, Malaysia
Abstract
This research was conducted to address leadership styles and affective organizational commitment and what types of leadership styles that contribute the most to affective organizational commitment within SMEs in Johor retail sector commitment. Quantitative was used for conducting this research and the questionnaire was distributed to the person in charge in order to distribute to his colleagues. The prepared questionnaire which covered dimensions of transformational leadership style and transactional leadership style, and affective organizational commitment was adapted from Multifactor Leadership Questionnaire and other research. Statistical Package for Social Science (SPSS) was used for analysing data. Pearson Correlation Analysis will be used to measure the relationship in linear correlation between two numerical data variables, Regression and Multiple Regression analysis was used to test single or multiple independent variables and one dependent variable. Inspirational motivation has a significant and strong positive relationship with affective organizational commitment. The finding showed that leadership styles have a very strong relationship with affective organizational commitment. By further dividing into two different leadership styles, the transformational leadership style has a significant and strong positive relationship with affective organizational commitment while the transactional leadership style has a significant and weak positive relationship with affective organizational commitment. Even both leadership styles have contributed to the affective organizational commitment, the transformational leadership style contributes the most to the affective organizational commitment followed by transactional leadership style.
Keywords
Andreas, R., Wiklund, J., Frese, M., & Lumpkin, G. (2006). Entrepreneurial orientation and business performance: Cumulative empirical evidence. Entrepreneurship Theory and Practice, 30(2), 145-160.
Acar, A. (2012). Organizational culture, leadership styles and organizational commitment in Turkish logistics industry. Procedia- Social and Behavioral Sciences 58, 217-226.
Aghashahi, B., Davarpanah, A., Omar, R., & Sarli, M. (2013). The relationship between leadership style and organiational commitment: A survey in a Malaysian contact centre. Interdisciplinary Journal of Research in Business, 2(11), 1-7.
Ajay K, G., & Ramjee, D. (2013). The relationship between leadership styles and employee commitment at a Parastatal Company in South Africa. International Business and Economics Research Journal, 12(11), 1411-1435.
Allen, N. J., & Meyer, J. P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of Occupational Psychology, 63, 1-18.
Antonakis, J., Avolio, B. J., & Sivasurbramaniam, N. (2003). Context and leadership: An examination of the nine factor full-range leadership theory using the multifactor leadership questionnaire. The Leadership Quarterly, 14(3), 261-295.
Arham, A. F., Bourcher, C., & Muenjohn, N. (2013). Leadership and entrepreneurial success: a study of SMEs in Malaysia. World Journal of Social Sciences, 3(5), 117-130.
Avolio, B. J., Bass, B. M., & Jung, D. I. (1999). Re-examining the components of transformational and transactional leadership using the Multifactor Leadership Questionnaire. Journal of Occupational and Organizational Psychology, 72, 441-462.
Avolio, B., Bass, B., & Jung, D. (1997). Replicated confirmatory factor analyses of the multi-factor leadership questionnaire. Binghamton, NY: Center for Leadership Studies, Binghamtom University.
Aziz, R. A., Abdullah, M. H., & Tajudin, A. (2013). The effect of leadership styles on the business performance of SMEs in Malaysia. International Journal of Economics Business and Management Studies, 2(2), 45-52.
Barbuto, J. E. (1997). Taking the charisma out of transformational leadership. Journal of Social Behavior and Personality, 12(3), 689-690.
Bass, B. M. (1985). Leadership and Performance Beyond Expectations. New York, NY: Free Press.
Bass, B. M. (1995). Theory of Transformational Leadership Redux. J. Leadership Q., 463-678.
Bass, B. M., & Avolio, B. J. (1993). Transformational leadership and organizational culture. Public Administration Quarterly, 112-121.
Bass, B., & Avolio, B. (1995). Multifactor Leadership Questionnaire technical report. Redwood City, CA: Mind Garden.
Bass, B., & Riggio, R. (2006). Transformational Leadership (2nd edition). Mahwah, NJ: Lawrence Erlbaum.
Bass, M., & Avolio, B. (1997). Full range leadership development. manual for the Multifactor Leadership Questionnaire. California: Mind Garden.
Bass, M., & Steidlmeier, P. (1998). Ethics, character and authentic transformational leadership. Binghamton, NY: Binghamton University.
Beaver, G. (2003). Small business: Success and failure. Strategic change, 12(3), 115-122.
Berry, A. (1998). The otential role of the SME sector in Pakistan in a world of increasing international trade. The Pakistan development review, 25-49.
Buchanan, B. (1974). Building organizational commitment: The socialization of managers in work organizations. Administrative Science Quartery, 19, 533-546.
Burns, R. B., & Burns, R. A. (2008). Business research methods and statistics using SPSS. Thousand Oaks: SAGE Publications.
Cemaloglu, N., Sezgin, F., & Kilinc, A. C. (2012). Examining the relationships between school principals' transformational and transactional leadership styles and teachers' organizational commitment. The Online Journal of New Horizons in Education, 2(2), 53-64.
Clinebell, S., Skudiene, V., Trijonyte, R., & Reardon, J. (2013). Impact of leadership styles on employee organizational commitment. Journal of Service Science, 6(1), 139-151.
Cooper, D. R., & Schindler, P. S. (2014). Business research methods, (12th edition). New York: McGraw-Hill Education.
Davies, J., Hides, M., & Powell, J. (2002). Defining the development needs of entrepreneurs in SMEs. Education + Training, 44(8/9), 406-412.
Den Hartog, D., Van Muijen, J., & Koopman, P. (1997). Transactional versus transformational leadership: An analysis of MLQ. Journal of Occupational and Organizational Psychology, 70, 19-34.
Dionne, S., Yammarino, F., Atwater, L., & Spangler, W. (2004). Transformational leadership and team performance. Journal of Organizational Change Management, 17(3), 591-616.
Donthu, N., & Yoo, B. (1998). Cultural infuences on service quality expectations. Journal of Service Research, 1, 178-186.
Eby, L. T., Freeman, D. M., Rush, M. C., & Lance, C. E. (1999). Motivational bases of affective organizational commitment: A partial test of an integrative theoretical model. Journal of Occupational and Organizational Psychology, 72, 463-483.
Eisenberger, R., Stinglhamber, F., Becker, T. E., Karagonlar, G., Neves, P., & Gonzalez-Morales, M. G. (2010). Leader-member exchange and affective organizational commitment: The contribution of supervisor's organizational embodiment. Journal of Applied Psychology, 1-19.
Feinberg, B. J., Ostroff, C., & Burke, W. W. (2005). The role of within group agreement in understanding transformational leadership. Journal of Occupational and Organizatioal Psychology, 78(3), 471-489.
Gillespie, N. A., & Mann, L. (2004). Transformational leadership and shared values: the building blocks of trust. Journal of Managerial Psychology, 19(6), 588-607.
Hair, J. F., Black, B., Babin, B., Anderson, R. E., & Tatham, R. L. (2006). Multivariate Data Analysis (6th edition). Harlow: Pearson Education.
Hartog, D., & Van Muijen, J. (1997). Transactional versus transformational leadership: An analysis of the MLQ. Journal of Occupational and Organisational Psychology, 70(1), 19-35.
Hilmi, M., Ramayah, T., Mustapha, Y., & Pawanchik, S. (2010). Product and process innovativeness: Evidence from Malaysia SMEs'. European Journal of Social Sciences, 16(4), 547-555.
Hunt, J. G., & Osborn, R. N. (1980). A multiple-influence approach to leadership for managers: Perspectives in leader effectiveness. The Center for Leadership Studies, 47-62.
Hussein, M. F., & Costa, J. L. (2008). Organizational commitment and its relationship to perceived leadership style in an Islamic school in a large urban centre in Canada: Teachers' perspectives. Journal of Contemporary Issues in Education, 3(1), 17-38.
Jaros, S. J. (1995). An assessment of Meyer and Allen's (1991) three-component model of organizational commitment and turnover intentions. Academy of Management Journal, Best Papers Proceeding, 317-328.
Judge, T. A., & Piccolo, R. F. (2004). Transformational and transactional leadership: A meta-analytic test of their relative validity. Journal of Applied Psychology, 89(5), 755-768.
Jung, D., & Avolio, B. (1999). Effects of leadership style and followers' cultural orientation and performance in group and individual task conditions. Academy of Management Journal, 42(2), 208-218.
Ladzami, W., Vurren, & Van, J. (2002). Entrepreneurship training for emerging SMEs in South Africa. Journal of Small Business Management, 40(2), 154-161.
Lo, M., Ramayah, T., & Min, H. (2009). Leadership styles and organizational commitment: a test on Malaysia manufacturing industry. African Journal of Marketing Management, 1(6), 133-139.
Lo, M.-C., Ramayah, T., & Ernest, C. d. (2010). Does transformational leadership style foster commitment to change? The case of higher education in Malaysia. Procedia Social and Behavioral Sciences, 2, 5384-5388.
Lok, P., & Crawford, J. (1999). The relationship between commitment and organizational culture, subculture, leadership style and job satisfacton in organizational change and development. Leadership and Organization Deveopment Journal, 20(7), 365-373.
Lowe, K., Kroeck, K., & Sivasubramaniam, N. (1996). Effectiveness correlates of transformational and transactional leadership: A meta-analytic review of the MLQ literature. Leadership Quaterly, 7(3), 385-427.
Mahdi, O. R., Mohd, E. S., & Almsafir, M. K. (2014). Empirical study on the impact of leadership behavior on organizational commitment in platation companies in Malaysia. Procedia- Social and Behavioral Sciences, 109, 1076-1087.
Mathieu, J. E., & Zajac, D. M. (1990). A review and meta-analysis of the antecedents, correlates and consequences of organizational commitment. Psychological Bulletin, 108(2), 171-194.
Meyer, J. P., & Allen, N. J. (1984). Testing the "Side-Bet Theory" of organizational commitment: Some methodological considerations. Journal of Applied Psychology, 69(3), 372-378.
Meyer, J. P., & Allen, N. J. (1988). Links between work experiences and organizational commitment during the first year of employment: A longitudinal analysis. Journal of Occupational Psychology, 61, 195-209.
Meyer, J., & Allen, N. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1(1), 61-89.
Nave, J. (2006). Leadership styles of entrepreneurs in small land surveying businesses. Proquest Information and Learning Company, 1079-1085.
Northouse, P. G. (1997). Leadership theory and practice. Thousand Oaks: Sage Publications.
Organ, D. W., & Ryan, K. (1995). A meta-analytic review of attitudinal and dispositional predictors of organizational citizenship behavior. Personnel Psych. 48, 776-801.
Organizing your social sciences research paper: Quantitative methods. (2016, April 27). Retrieved 3 February, 2016 from USC Libraries Research Guides: http://libguides.usc.edu/writingguide/quantitative
Parikh, D. (2006). Measuring retail service quality: An empirical assessment of the instrument. Vikalpa, 31(2), 45-55.
Podsakoff, P. M., Todor, W. D., & Skov, R. (1982). Effects of leader contingent and noncontingent reward and punishment behaviors on subordinate performance and satisfaction. Academy of Management Journal, 25(4), 810-821.
Ponnu, C. H., & Chuah, C. C. (2010). Organizational commitment, organizational justice, and employee turnover in Malaysia. African Journal of Business Management, 4(13), 2676-2692.
Porter, L., Steers, R., Mowday, R., & Boulian, P. (1974). Organiational commitment, job satisfaction and turnover among psychiatric technicians. Journal of Applied Psychology, 95(5), 603-609.
Rhoades, L., Eisenberger, R., & Armeli, S. (2001). Affective commitment to the organization: The contribution of perceived organizational support. Journal of Applied Psychology, 86(5), 825-836.
Riaz, T., Akram, M. U., & Ijaz, H. (2011). Impact of transformational leadership style on affective employees' commitment: An empirical study on banking sector in Islamabad (Pakistan). The Journal of Commerce, 3(1), 43-51.
Sabir, M. S., Sohail, A., & Khan, M. A. (2011). Impact of leadership style on organization commitment: In a mediating role of employee values. Journal of Economics and Behavioral Studies, 145-152.
Saunders, M., Lewis, P., & Thornhill, A. (2009). Research Methods for Business Students (5th edition). Hawlow, England: Prentice Hall.
Saunders, M., Lewis, P., & Thornhill, A. (2012). Research methods for business students (6th edition). Harlow, England: Pearson Education Limited.
Sellers, P. (1990). What customers really want. Fortune, 121(13), 58-68.
Teck-Hong, T., & Waheed, A. (2011). Herzberg's motivation-hygiene and job satisfaction in the Malaysian retail sector: Mediating effect of love of money. Asian Academy of Management Journal, 16(1), 73-94.
Toffler, A. (1990). Power shift. New York: Bantam Books.
Top, M., Tarcan, M., Tekingunduz, S., & Hikmet, N. (2013). An analysis of relationships among transformational leadership, job satisfaction, organizational commitment and organizational trust in two Turkish hospitals. The international Journal of Health Planning and Management, 217-241.
Tracey, J., & Hinkin, T. (1998). Transformational leadership or effective managerial practices. Group and Organisational Management, 23(3), 220-237.
Wong, C. (23 December, 2013). Malaysia's SME statistics, and e-commerce readiness. Retrieved 23 December, 2013 from Ecommerce Milo: http://www.ecommercemilo.com/2013/12/malaysia-sme-statistics-ecommerce-readiness.html
Yammarino, F. J., & Dubinsky, A. J. (1992). Superior-subordinate relationships: A multiple levels of analysis approach. Human Relations, 45(6), 575-601.
Yammarino, F., Spangler, W., & Dubinsky, A. (1998). Transformational and contingent reward leadership: Individual, dyad and group level of analysis. Leadership Quality, 9(1), 27-55.
Yeh, H., & Hong, D. (2012). The mediating effect of organizational commitment on leadership tyle and job performance. The journal of Human Resource and Adult Learning, 8(2), 50-59.
Yukl, G. (1994). Leadership in organizations. Englewood Cliffs, NJ: Prentice-Hall.
)