The Role of Transformational and Transactional Leadership on Turnover Intentions in Tanzanian Commercial Banks: The Moderating Effect of Perceived Organizational Support

Abstract

Purpose: This study is aimed at examining the role of transformational and transactional leadership on turnover intentions in Tanzanian commercial banks. Further, the study scrutinizes the moderating effect of perceived organizational support. Design/Method/Approach: The study used a quantitative approach. Data were collected from 231 employees working in head offices of three commercial banks in Tanzania. Data were analyzed by using descriptive and inferential statistics. Findings: The study found that both transformational and transactional styles of leadership are used in commercial banks. Further, each leadership style plays a significant role in reducing turnover intentions. Perceived organizational support was also found to be a significant moderator of the relationship between each leadership style and turnover intentions. Theoretical Implications: This study extends the literature on the role of a relationship between transformational and transactional leadership styles on turnover intentions in Tanzanian commercial banks. Practical Implications: Commercial banks have to make use of both transformational and transactional leadership styles in order to obtain positive outcomes in retaining their employees. Moreover, better results could be achieved once employees perceive the presence of organizational support. Originality/Value: As per the existing empirical literature, it is the first study to be conducted in the Tanzanian context. Research Limitations/Future Research: This study used a quantitative method only. Future studies may consider using a mixed approach to get more insights from respondents. Data collection was done in three commercial banks in Tanzania. A more comprehensive study to be done in bank branches is therefore recommended. Paper Type: Empirical JEL Classification: M12, M19, M53