Document Type : Original Research

Authors

School of Management & Economics, Chongqing University of Post and Telecommunications, Chongqing, China

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

Main Subjects

COPYRIGHTS

©2022 The author(s). This is an open access article distributed under the terms of the Creative Commons Attribution (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, as long as the original authors and source are cited. No permission is required from the authors or the publishers.

Aboobaker, N. E. (2017). Work–family conflict,family–work conflict and intention to leave the organization: evidences across norms as predictors of workers’ turnover intentions. Pers. Soc. Psychol. Bull, 24, 1027–1039.
Aboobaker, N. E. (2019). Collective influence of work–family conflict and work–family enrichment on turnover intention: Exploring the moderating effects of individual differences. Global Business Review, 18, 524-536.
Allen, N. A. (1990). “The measurement and antecedents of affective, continuance and normative commitment to the organisation”. Journal of Occupational Psychology, 63(1), 1-18.
Allen, N. A. (1991). A Three-Component Conceptualization of Organizational Commitment. Human Resource Management Review, 1, 61-89.
Amagoh, F. (2009). Leadership development and leadership effectiveness . Management Decision, 47, 989-999.
Amankwaa, A. A.-T. (2015). Linking transformational leadership to employee turnover: The moderating role of alternative job opportunity. International Journal of Business Administration, 6, 19-29.
Arham, A. (2014). Leadership and performance: The case of Malaysian SMEs in the services sector. International Journal of Asian Social Science, 4, 343-355.
Arham, A. (2014). Leadership and performance: The case of Malaysian SMEs in the services sector. International Journal of Asian Social Science, 4, 343-355.
Avolio, B. W. (1991). Leading in the 1990s: The four I's of transformational leadership. Journal of European Industrial Training, 15, 9-16.
Bass, B. M. (1985). Bass Transformational Leadership Theory.
Birkinshaw, J. M. (1995). Structural and competitive determinants of a global integration strategy. Strategic Management Journal, 637-655.
Bycio, P. R. (1995). Further assessments of Bass's (1985) conceptualization of transactional and transformational leadership. Journal of Applied Psychology, 80, 468-478.
Chan, B. Y. (2010). An exploratory study on turnover intention among private sector employees . International Journal of Business and Management, 8(5), 57-64.
Deichmann, D. a. (2015). Leveraging transformational and transactional leadership to cultivate the generation of organization-focused ideas. Leadersh. Q, 26, 204-219.
Eisenberger, R. K. (2010). Leader member exchange and affective organizational commitment: The contribution of supervisor's organizational embodiment. Journal of Applied Psychology, 95(6), 1085-1103.
Flint, D. (2013). Individual and organizational determinants of turnover intention. Personnel Review, 42, 552-572.
Guntur, R. H. (2012). The influence of affective, continuance and normative commitments on the turnover intentions of nurses at Makassar’s private hospitals in Indonesia. African Journal of Business Management, 6(38), 10303-10311.
Hackman, J. A. (1975). Development of the job diagnostic survey. Journal of Applied Psychology, 60(2), 159-170.
Hair, J. F. (2017). Mirror, mirror on the wall: a comparative evaluation of composite-based structural equation modeling methods. J. Acad. Mark. Sci, 45, 616-632.
Hair, J. J. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). 2nd ed., SAGE Publications, Thousand Oaks, CA.
Hassan, M. M. (2019). Redesigning the retention strategy against the emerging turnover of generation y: Revisiting the long-standing problems from 20th to 21st century. International Journal of Entrepreneurship, 23(2), 1-16.
Henseler, J. R. (2015). A new criterion for assessing discriminant validity in variance based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135.
Holtom, B. C. (2004). Job embeddedness: A theoretical foundation for developing a comprehensive nurse retention . Journal of Nursing Administration, 34(5), 34(5), 216-227.
Homans, G. C. (1958). Social behavior as exchange . American Journal of Sociology, 63(6), 597-606.
Hughes, L. A. (2010). Relationships between leadership and followers’ quitting intentions and job search behaviors. Journal of Leadership & Organizational Studies, 17, 351-362.
Johansson, J. K. (1994). Exploiting globalization potential: US and Japanese strategies. Strategic Management Journa, 15(8), 579-601.
Ladzani, M. (2009). Evaluation of small and medium-sized enterprises' performance in the built environment. Doctoral Dissertation, University of Johannesburg, Johannesburg.
Lee, M. (2014). Transformational leadership: is it time for a recall? International Journal of Management and Applied Research, 1(1), 17-29.
Lee, S. E. (2020). Factors related to perioperative nurses’ job satisfaction and intention to leave. Jpn J. Nurs. Sci. 17:e12263.
Leroy, H. P. (2012). Authentic leadership and behavioural integrity as drivers of follower commitment and performance. Journal of Business Ethics, 107(3), 255-264.
Loquercio, M. H. (2006). Understanding and addressing staff turnover in humanitarian agencies. Oversees Development Institute: The Humanitarian Practice Network.
Ludi Wishnu Wardana, B. S. (2020). The impact of entrepreneurship education and students' entrepreneurial mindset: the mediating role of attitude and self-efficacy. 6(9).
Lukács, E. (2005). The economic role of SMEs in world economy, especially in Europe. European Integration Studies, 4, 3-12.
Madanchian, M. T. (2017). Role of leadership in small and medium enterprises (SMEs). International Journal of Economics and Management Systems, 2, 240-243.
Mathews, J. (2006). Dragon multinationals: New players in 21st century globalization. Asia Pacific Journal of Management, 23, 5-27.
Meyer, J. A. (1997). Commitment in the Workplace: Theory, Research, and Application, Sage, Thousand Oaks, CA.
Meyer, J. A. (2001). “Commitment in the workplace: toward a general model”. Human Resource Management Review, 299-326.
Meyer, J. P. (2004). Employee commitment and motivation: A conceptual analysis and integrative model. Journal of Applied Psychology, 89(6), 991-1007.
Meyer, J. S. (2002). “Affective, continuance, and normative commitment to the organization: a meta-analysis of antecedents, correlates, and consequences”. Journal of Vocational Behaviour, 61(2), 20-52.
Mitchell, T. H. (2011). Why people stay: Using job embeddedness to predict voluntary turnover. Academy of Management Journal, 44, 1102-1121.
Mullins, L. (2007). Management and Organisational Behaviour. 8th ed., Financial Times Prentice Hall, Harlow.
Ndubisi, N., & Saleh, A. (2006). Small and medium enterprises in Malaysia: development issues. Small & Medium Enterprises (SMEs): Malaysian and Global Perspective, 3-16.
Ng, T. A. (2007). Organizational embeddedness and occupational embeddedness across career stages. Journal of Vocational Behavior, 70(2), 336-351.
Ongori, H. (2007). A review of the literature on employee turnover. African Journal of Business Management, 49-54.
Park, C. M. (2019). The impact of job retention on continuous growth of engineering and informational technology SMEs in South Korea. Sustainability 11:5005.
Pettigrew, A. (1987). Context and action in the transformation of the firm. Journal of Management Studies, 24, 649-670.
Polónia, A., & Capelão, R. (2018). Women as go-betweens in processes of cultural encounters: The Portuguese overseas empire case study (1500-1700). In Connecting Worlds: Production and Circulation of Knowledge in the First Global Age, Polónia, A., Bracht, F., Conceição, G.C., Eds. Cambridge Scholars Publishing: UK, 269-295.
Purcell, J. A. (2007). Front-line managers as agents in the HRM-performance causal chain: theory, analysis and evidence. Human Resource Management Journal, 17(1), 3-20.
Rhoades, L. E. (2001). Affective commitment to the organization: The contribution of perceived organizational support. Journal of Applied Psychology, 86(5), 825-836.
Seyal, A. M. (2004). Determinants of electronic commerce in Pakistan:Preliminary evidence from small and medium enterprises. Electronic Markets, 372-387.
Siew, L. K. (2017). Analysis of the Relationship between Leadership Styles and Turnover Intention within Small Medium Enterprise in Malaysia. Journal of Arts & Social Sciences, 1, 1-11.
Staw, B. (1980). The consequences of turnover. Journal of Occupational Behaviour, 1, 253-273.
Stazyk, E. P. (2011). “Understanding affective organisational commitment: the importance of institutional context". The American Review of Public Administration, 41(6), 603-624.
Syah, T. Y. (2018). The Influence of Compensation and Organizational Commitment on Employees’ Turnover Intention.
Taylor, A. B. (2008). Tests of the three-path mediated effect. Organizational Research Methods, 11(2), 241-269.
Walumbwa, F. a. (2011). Understanding transformational leadership employee performance links: the role of relational identification and self-efficacy. Journal of Occupational and Organizational Psychology, 84(1), 153-172.
Wells, J., & Peachey, J. (2011). Turnover intentions: Do leadership behaviors and satisfaction with the leader matter? . Team Performance Management, 17, 23-40.
Yucel, I. A. (2014). Does CEO transformational leadership influence top executive normative commitment? Journal of Business Research, 67, 1170-1177.
Yucel, I. M. (2013). Does CEO transformational leadership influence top executive normative commitment? Journal of Business Research, 67(6), 1170-1177.
Yukl, G. (2010). Leadership in Organisations. 7th ed., Prentice Hall, Upper Saddle River, NJ.