Transformational leadership and life satisfaction: The sequential mediation model of organizational trust and proactive behavior

Abstract

The accelerating need for sustainable development across the globe has put firms under great pressure to play their role in social sustainability by working on several objectives. Among them, achieving life satisfaction for their employees is at the forefront. The study aims to examine sequential mediating roles of organizational trust and proactive behavior in transformational leadership and life satisfaction relationships. It draws on social exchange theory and explores investment in relationships within the organization through mutual support and reciprocity. Data were collected through self-reported questionnaires of employees associated with different public and private sector organizations in Pakistan. The study opted for a three-wave time-lagged design. For results, Process macro by Hayes is performed on a sample of 211 employees via 2000 re-samples bias-corrected bootstrap method. The findings reveal that in the presence of a transformational style of leading, when trust is inseminated in followers, their proactivity increases, leading them towards satisfaction in life. Theoretical and practical implications are also discussed in light of the findings.