Transformational Leadership and Work Engagement on Turnover Intention of Employees in the MNCs in Vietnam: The Moderating Role of Job Satisfaction and Organizational Size

Abstract

Specifically, this research paper aims to provide a more detailed understanding of how transformational leadership can influence employee’s morale and attrition intentions, using the exploration of job satisfaction and organizational size as a moderator. The survey included 652 employees from sixteen MNCs operating in Ho Chi Minh City, Vietnam. Data was analyzed using AMOS software package version 24.0. The results have shown that transformational leadership has a positive impact on work engagement and work engagement has a mitigating effect on turnover. In addition, it suggests that job commitment influences the connection between transformational leadership and the employee’s desire to make a transition. This study’s result will benefit the managers who wish to reduce employee turnover by leveraging on the transformational leadership style of management. In larger organizational settings, empirical evidence supports this theory. Both theories were afforded empiric support. Discussions, conceptual and administrative consequences, shortcomings, and potential guidance are also presented.