Turnover intentions of non-family employees in family firms – the influence of leader mindfulness, LMX quality and affective commitment

Abstract

PurposeLeveraging the mindfulness theory and the social exchange theory, this study examines the influence of perceived leader mindfulness (PLM) on turnover intentions (TOI) of non-family employees (NFEs) working in family firms. The study investigates whether the above relationship is mediated by employee perceptions of leader–member exchange quality (LMX quality) and their affective commitment (AC).Design/methodology/approachA conceptual framework is proposed that hypothesizes inverse relationship between PLM and TOI, which is posited to be mediated by both LMX quality and AC. The hypotheses are tested through survey data collected from 254 NFEs working in various family-owned businesses in Malaysia. The data analyzed through partial least square structural equation modeling (PLS-SEM).FindingsThe results indicate that PLM has a positive influence on both LMX quality and AC. Moreover, PLM has a strong negative affect on TOI. In terms of results of mediation analysis, it appears that two mediation hypotheses out of four are significant, that is mediating effect of AC between PLM and TOI and LMX quality between PLM and AC. However, the mediating role of LMX quality between PLM and TOI and the sequential mediation hypotheses were both non-significant.Research limitations/implicationsThe findings of the study imply is that to ensure retention of qualified and talented NFEs, mindfulness of family firm leaders plays a significant role in ensuring lower TOI. Furthermore, such a goal is better achieved by ensuring that such employees are supported through leadership that leads to their development of better LMX quality and AC towards the organization. The study however is limited, as other potential exogenous variables that may influence TOI were not considered.Practical implicationsLosing employees that join a firm and acquire valuable skills and experience is a significant concern for family firms that are known for discriminating between employees related to the owners and outsiders. This study presents evidence for owners and managers of family firms that by focusing on mindful behavior and working towards developing better LMX quality and AC of NFEs, the organization can reduce TOI of such employees.Originality/valueThis study contributes to the under-researched and fragmented literature on relationships between PLM among NFEs and TOI of such individuals working in family firms. Moreover, this appears to be the first study that investigates mediating roles of and LMX quality and AC among NFEs in the above relationship.