The role of job satisfaction in mediating the effect of transactional leadership and organizational commitment on intention to stay

Abstract

This study aims to investigate the effect of transactional leadership and organizational commitment on intention to stay mediated by job satisfaction at PT X and PT Y. This is an explanatory study using a quantitative approach with saturated sampling, where all members of the population are used as research samples. The questionnaire was distributed to employees of PT X and PT Y with a total of 122 respondents. Data collection in this study was collected using a questionnaire distributed in person and using Likert scales to test the instrument. The data obtained were analyzed using Partial Least Square (PLS). The results revealed that transactional leadership and job satisfaction had a positive and significant effect on the intention to stay, while organizational commitment had a positive and insignificant effect on the intention to stay. The results also show that job satisfaction mediates the effect of transactional leadership and organizational commitment to intention to stay. The findings of this study suggest that leaders at PT X and PT Y need to increase the role of transactional leadership and the company needs to pay more attention to the factors that affect employee job satisfaction.