Does organizational culture mediate the relationship between transformational leadership and organizational commitment

Abstract

To date, the relationships among organizational culture, transformational leadership and organizational commitment have been empirically investigated. However, majority of these studies have been focusing on direct effects of either transformational leadership or organizational culture on organizational commitment in large organizations. This approach might not only hinder our understanding on real predictors of organizational commitment but also obscure the presence of spurious relationships. Therefore, this study aims to determine the mediating effect of organizational culture on the relationship between transformational leadership and organizational commitment among small business employees. An explanatory research design was used with cross-sectional survey as data collection technique. Once the composite reliability, construct, and convergent and discriminant validity of the measurement constructs were established, a Partial Least Square Structural Equation Modeling (PLS-SEM) was run to analyze the structural model and the mediating effect of organizational culture. The results showed that organizational culture does not mediate the effect of transformational leadership on organizational commitment among small business. This study cautions the generalization of findings obtained from large organizations to be extended to small organizations.