The Effects of Transformational Leadership and Job Satisfaction on Commitment to Organisational Change: A Three-Component Model Extension Approach

Abstract

Research Aims: The present study aimed to examine the relationship between transformational leadership, job satisfaction and employee commitment to organisational change. Design/Methodology/Approach: Extension of a three-component model was employed. The study sample consisted of 474 employees in organisations undergoing a significant organisational change in Vietnam. The data were analysed using a structural equation model (SEM). Research Findings: The study results show that transformational leadership has a positive and significant influence on job satisfaction and organisational commitment to change (affective commitment, normative commitment, continuance commitment). Job satisfaction is found to be positively and significantly related to employee affective commitment and normative commitment to organisational change. Theoretical Contribution/Originality: This study indicated the critical role of transformational leadership and job satisfaction on the commitment to organisational change in the context of an emerging economy. Managerial Implications in the Southeast Asian Context: Organisations should maintain employees' positive attitudes and behaviour by applying the transformational leadership style and ensuring job satisfaction, which plays a central role in the organisation by orienting employee psychology, motivation and positive behaviour to change. Research limitation & implications: This study has certain limitations due to its sample and self-report questionnaire scale. The research model did not simultaneously test multiple antecedents (e.g., personality, context) and consequences of employee commitment to organisational change. There is a lack of empirical studies addressing the relationship between demographics and antecedents/consequences of commitment to change.