The interaction effect of transactional-transformational leadership on employee commitment in a developing country

Abstract

Purpose

While substantial a number of research studies have examined the effect of leadership styles on work-related behaviour, the interaction effect of transactional-transformational leadership on work-related behaviour has been rarely investigated in a developing context. Thus, this study aims to examine the interaction effect of transactional-transformational leadership on employee commitment in Ghana.

Design/methodology/approach

The study used descriptive and cross-sectional survey designs. Cross-sectional data was obtained from 360 employees in the aviation industry of Ghana and analyzed using descriptive statistics, correlation and hierarchical regression techniques.

Findings

Transactional leadership style has a significant positive effect on employee commitment. However, when transformational leadership was added on transactional leadership base, there was no augmentation effect of transformational leadership style in predicting employee commitment. The results further indicate that there was a negative interaction effect of transactional and transformational leadership styles on employee commitment.

Practical implications

The findings imply that organizational leaders can improve employee commitment by purely resorting to transactional leadership behaviours. Leaders can also enhance employee commitment by augmenting transactional leadership behaviours on transformational leadership, as the reverse has no augmentation effect.

Originality/value

This study considerably complements existing leadership literature by establishing how a transformational leadership style can augment and/or interact with transaction leadership style to influence employee commitment in a developing country.

Citation

Puni, A., Hilton, S.K. and Quao, B. (2021), "The interaction effect of transactional-transformational leadership on employee commitment in a developing country", Management Research Review, Vol. 44 No. 3, pp. 399-417. https://doi.org/10.1108/MRR-03-2020-0153