IMPACT OF TRANSFORMATIONAL LEADERSHIP STYLE ON ORGANIZATIONAL COMMITMENT OF EMPLOYEES AT COMMERCIAL BANKS IN DIGITAL TRANSFORMATION CONTEXT

Abstract

The study aims to evaluate the impact of transformational leadership style on organizational commitment of employees at commercial banks in the context of digital transformation. Quantitative research methods have been used through exploratory factor analysis (EFA) and linear structural modeling (SEM) with a survey scale including 582 samples of employees at different commercial bank branches in all three regions of the country: North, Central and South. The results show both theoretical and practical contributions of the research as it has demonstrated the importance and both direct and indirect impact of transformational leadership style on three components of organizational commitment of employees including emotional bonding; calculation-based commitment and standards-based engagement through the mediating element, that is creativity at work. Based on the research results, a number of recommendations have been proposed to promote the transformational leadership style and strengthen the organizational commitment of employees at commercial banks in the context of digital transformation.