The Role of Transformational Leadership and Psychological Capital in the Hotel Industry: A Sustainable Approach to Reducing Turnover Intention

Daria Gom,Tek Yew Lew,Mary Monica Jiony,Stephen Sondoh,Geoffrey Harvey Tanakinjal

doi:10.3390/su131910799

Daria Gom, Tek Yew Lew + Show 3 more

Open Access

https://doi.org/10.3390/su131910799

Copy DOI

Abstract

With the high level of importance placed on service delivery and the elevated turnover rate experienced in the hotel industry, this study was conducted to explore the influences of perceived transformational leadership on the cross-cultural psychological capital and turnover intentions of frontline employees working in four- and five-star hotels in Sabah, Malaysia. Data were collected from 162 frontline employees using the purposive sampling method. Partial least squares structural equation modeling (PLS-SEM) was performed to test the hypothesized relationships. The findings clearly demonstrate that transformational leadership positively affects cross-cultural psychological capital and negatively influences turnover intention. Cross-cultural psychological capital, on the other hand, has no substantial link with turnover intention and does not act as a mediator between transformative leadership and turnover intention. This study extends the hospitality literature by offering a new conceptual model representing the perceptions of frontline employees toward transformational leadership and cross-cultural psychological capital that influence the turnover intention of these employees based on the job demands–resources and conservation of resources theories. These findings have implications for the advancement of transformational leadership and cross-cultural psychological capital toward a sustainable approach to reducing employee turnover in the hotel industry.

Highlights

Introduction published maps and institutional affilGlobally, the tourism and hospitality industry is one of the fastest growing industries, contributing significantly to the economic growth of a country
This study was completed prior to the pandemic crisis, it is relevant in the context of human resource management, as hotel businesses will thrive once the virus has passed, and the economy has recovered in the “new normal” environment [3]
The results reveal that multicultural personality traits have a positive relationship with cross-cultural psychological capital (PsyCap) and service quality

Summary

Introduction

The tourism and hospitality industry is one of the fastest growing industries, contributing significantly to the economic growth of a country. The Malaysian tourism and hospitality industry has developed rapidly and is the third-largest contributor to the Malaysian economy [1,2]. In 2019, Malaysia welcomed 26.1 million tourists, generating MYR 86.1 billion in tourism revenue, and this was anticipated to expand further if not for the unprecedented COVID-19 crisis, which impacted all businesses worldwide. This study was completed prior to the pandemic crisis, it is relevant in the context of human resource management, as hotel businesses will thrive once the virus has passed, and the economy has recovered in the “new normal” environment [3]. 2019, contributing MYR 9.01 billion to its gross domestic product (GDP), an increase of.

Objectives

Methods

Findings

Discussion

Conclusion