The effect of transformational leadership style on employee performance in the service industry in Ho Chi Minh City: The mediating role of organizational commitment

Abstract

The purpose of the study is to test the influence of transformational leadership style on employee performance through the role of organizational commitment in the service industry in Ho Chi Minh City. Research data was collected from employees of service industry enterprises in Ho Chi Minh City. After the data cleaning process, 572 samples were included in the official analysis using Smart PLS 3.3.3 software. Data analysis was performed through partial least squares structural equation modeling (PLS-SEM) in two stages, i.e., the measurement model and the structural model. The results confirm that transformational leadership has a positive impact on employee performance, while employee organizational commitment plays a mediating role. From there, it is concluded that some management implications are valuable references for service industry enterprises in Ho Chi Minh City to find solutions to increase the work efficiency of employees. The research includes the main contents of (i) problem statement, (ii) theoretical basis and research model, (iii) research method, (iv) research results, (v) conclusions and recommendations and (vi) limitations and future research directions.