Exploring the Effect of Transformational Leadership on Job Performance in the Service Industry: The Moderating Role of Organizational Citizenship Behaviour

Abstract

This study aims to research how transformational leadership affects job performance and subsequently the moderating role of Organizational Citizenship Behaviour (OCB). A total of 190 employees working in the Malaysia service industry, specifically the professional service sector, as respondents have participated in the research questionnaire. Convergent validity, discriminant validity, reliability and hypothesis testing were analysed by using SmartPLS3 software. This study revealed that only two dimensions of transformational leadership: idealised influence (behaviour) and intellectual stimulation were positively related to job performance. OCB only partially moderates the relationship between transformational leadership and job performance such as inspirational motivation, individualized consideration, and job performance. This study provides a framework for the management field to incorporate and recognize further need to study the importance of OCB on transformational leadership and job performance in Malaysia.