IMPACT OF VIRTUALITY IN THE WORKPLACE ON EMPLOYEE COMMITMENT: THE MODERATING ROLE OF TRANSFORMATIONAL AND TRANSACTIONAL LEADERSHIP

Abstract

This study analyzes the impact of virtuality in the workplace on employee commitment and the moderating role of two leadership styles: transformational leadership and transactional leadership. The study aims to clarify the effects of the virtual work environment and how leadership styles influence employee engagement. The study employs a quantitative research method with 386 survey samples collected from employees at businesses in Vietnam and analyzed using SmartPLS 3 software. The findings indicate that virtuality in work teams negatively affects employee commitment, whereas transformational leadership positively enhances commitment by inspiring employees and fostering a positive work environment. Though less influential, transactional leadership also contributes to maintaining commitment through clear performance management. The research results provide a foundation for businesses to adopt appropriate leadership styles to enhance employee engagement and work efficiency in virtual environments.