A Correlational Study of Transformational and Transactional Leadership and Organizational Commitment in Small Entrepreneurial Firms

A Correlational Study of Transformational and Transactional Leadership and Organizational Commitment in Small Entrepreneurial Firms

Author: 
Irina Zhuplatova
Program of study: 
Ph.D./IO Psych
Abstract: 
Leadership style of managers is an important determinant of organizational success. Effective managers can influence employee job attitudes and behaviors toward attaining organizational goals. A committed and productive workforce is an essential asset of small business organizations and a strong source of competitive advantage. The purpose of this quantitative, non-experimental correlational research was to examine the relationship between transformational and transactional leadership style of managers and organizational commitment of their subordinates in small entrepreneurial firms. Data were collected from 71 organizational members of two small entrepreneurial firms in New Jersey. The survey included items of the Multifactor Leadership Questionnaire and the Three-Component Model Employee Commitment Survey. Research findings indicated positive relationships between each leadership style and different components of organizational commitment. Results provided evidence of significant relationships between transformational leadership style and affective commitment, r = .516, p < .01, and transformational leadership style and normative commitment, r = .319, p < .01. The outcomes of multiple regression analyses indicated that 26.8% of the variance in level of affective commitment and 11. 9% of the variance in level of normative commitment were accounted for by the transformational leadership style. A significant relationship found between transactional leadership style and continuous commitment, r = .235, p < .05, and 8. 2 % of the variance in level of continuous commitment was accounted for by the transactional leadership style. The results indicated that transformational leadership style of managers explained more variance in the level of employee affective (=.528, p < .01) and normative (= .350, p < .01) commitment above transactional leadership style.
Dedication: 
To my husband, Sergey who is not only a bright and talented person, but also a devoted husband who has always inspired me and helped. To my dearly loved sons, Ilya and Roman who have supported me in pursuing a challenging educational goal. To the memory of my grandmother Maria who had encouraged my education and fostered openmindedness, curiosity and humbleness. I would like to thank my family for their unconditional love and support
Acknowledgements: 
I would like to acknowledge with gratitude everyone who helped me attain my doctoral degree. I wish to express my special appreciation to my dissertation committee for all your efforts to maintain academic rigor and enhance my learning experience. It is a pleasure to say a word of appreciation for the deep professional knowledge, insight, and feedback each of you provided. You helped me engage in learning and advance skills in the realm of critical thinking. My sincere thanks to Dr. Michael Raphael, my dissertation chair, for careful guidance through every step of the dissertation process and support of my endeavors to produce quality and credible work. I am especially thankful to Dr. William Shriner, my committee member, for steady support of intellectual courage and diligence in the dissertation work. I am grateful to Dr. Kate Andrews, my committee member, for inspiration, encouragement, and help to meet high academic standards. I give special recognition to the owners of small business organizations for their courtesy and willingness to participate in research and my deep appreciation to all employees for the completion of the survey.