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The mediating role of job satisfaction in the relationship between leadership styles and employee commitment

T. S. Nanjundeswaraswamy

Journal of Economic and Administrative Sciences, 2021, vol. 39, issue 2, 286-304

Abstract: Purpose - The aim of this study is to identify the association between leadership styles (LS) and employee commitment(EC) among employees working in the mechanical manufacturing small- and medium-sized enterprises (SMEs), mediated by job satisfaction. Design/methodology/approach - The research is cross-sectional and the survey method was used, and Pearson correlation analyses, regression analysis and structural equation modelling (SEM) were used to examine the hypothesis. A sample of 911 responses was collected from 102 mechanical manufacturing SMEs in and around Bangalore, India. Findings - EC depends on the age, the experience of employees, LS of the superior and job satisfaction of employees who are working in the mechanical manufacturing SMEs. The research found out that job satisfaction partially mediates the relationship between LS and EC. Research limitations/implications - The study is cross-sectional in nature; it measures and quantifies the different variables at a single point period; therefore, the research does not offer outcomes over a long period. Practical implications - To enhance the commitment of employees working in the mechanical manufacturing SMEs, managers/superiors should make an effort to exhibit a holistic view of LS that enhances job satisfaction and improves the pleasant relationship in the work environment. Social implications - In the competitive business environment retaining skilled and talented employees is the major challenge for the organization. Many research studies explored that committed employees will retain in the organization for a long tenure. Thus, our study contributes to the body of the literature on predictors of EC. It is noted that the involvement of employees by the leaders during the decision-making process, creates an effective working ambience for the employees and establishes a pleasant relationship among employees. The leader will motivate the employees to work efficiently and effectively, in addition to that they motivate employees to continue working with the same organization. Hence there is a need for the mechanical manufacturing firms to design and implement strategies of motivating employees to remain in the organization. Our study was cross-sectional in nature; it measures and quantifies the different variables at a single point period; therefore, research does not offer outcomes over a long period. Hence a longitudinal study over some time gives more accurate outcomes, and it is more appropriate. This study focused on employees working in the mechanical manufacturing firms, in and around Bangalore, India; therefore, findings cannot be generalized to all employees of the mechanical manufacturing firms. Originality/value - This research contributes to the existing literature by exploring further evidence and support for the relationship between LS and EC in mechanical manufacturing SMEs. And research also reveals that job satisfaction partially mediates the relationship between the LS and EC in mechanical manufacturing SMEs.

Keywords: Job satisfaction; Manufacturing SMEs; Employee commitment; Leadership styles (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jeaspp:jeas-02-2021-0029

DOI: 10.1108/JEAS-02-2021-0029

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