The effects of transformational leadership on perceived organizational support and organizational identity

Abstract

BACKGROUND: This study examines the relationship among transformational leadership dimensions, perceived organizational support, and organizational identity in the banking sector which has been scarce theoretically and tested empirically in a Turkish context. OBJECTIVE: The purpose of this study to explore the impact of transformational leadership on perceived organizational support and organizational identity. It is predicted that transformational leadership will stimulate organizational identity of employees working in banking sector through their perceived organizational support. METHODS: Using the survey method, 227 responses were collected from employees. A partial least squares structural equation model was constructed to test the reliability and validity of the measurement and the structural model. RESULTS: The study results show that inspirational motivation and individual consideration dimensions of transformational leadership are found to influence employees perceived organizational support whereas perceived organizational support has a strong effect on employees’ organizational identity. However, perceived organizational support is found to mediate the relationship between inspirational motivation dimension of transformational leadership and organizational identity. The study also found a significant impact of individual consideration dimension of transformational leadership on employees’ organizational identity. CONCLUSIONS: We believe that strong genuine organizational identity should result in organizational commitment. In the long run, we need to keep caring and addressing the maturity of individual consideration in the relationship between the employee and the organization within transformational leadership model.