Relationships between leadership style, career development, work stress, and turnover intention in a high-tech industry: Moderating role of psychological contract
-
Received July 1, 2024;Accepted October 11, 2024;Published November 12, 2024
-
Author(s)Link to ORCID Index: https://orcid.org/0009-0001-2094-3933Link to ORCID Index: https://orcid.org/0000-0002-6881-3441
-
DOIhttp://dx.doi.org/10.21511/ppm.22(4).2024.20
-
Article InfoVolume 22 2024, Issue #4, pp. 253-267
- TO CITE АНОТАЦІЯ
- 21 Views
-
6 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Employee turnover is an unavoidable part of business development, costing important human resources and impeding long-term growth and strategy implementation. To maintain a steady workforce, businesses must prioritize understanding and addressing this issue. The objective of this study is to examine the impact of leadership style, career development, and work stress on turnover intention in the high-tech industry and to investigate the moderating role of psychological contracts in these relationships. The sample consists of 380 employees of the R&D departments in high-tech companies in Shenzhen, Guangdong province, China, mainly engaged in the electronic information, advanced manufacturing, and automation sectors. The data were gathered via an online questionnaire, and the Smart-PLS approach was used to analyze the data. The empirical findings indicate that transactional leadership, transformational leadership, and career development are significantly and negatively related to turnover intention, whereas work stress has a significant positive effect. The psychological contract moderates the relationship between career development and turnover intention; the higher the psychological contract, the stronger the relationship. In addition, the psychological contract moderates the relationship between work stress and turnover intention, whereby the higher the psychological contract, the weaker the relationship. However, no empirical evidence suggests that the psychological contract moderates the relationship between leadership styles and turnover intention. The R² value is 0.485, indicating moderate explanatory power, and with a GOF index of 0.492, the model also demonstrates a good fit with the data. This study offers considerable implications for both theoretical and practical applications.
- Keywords
-
JEL Classification (Paper profile tab)D23, J63, L63
-
References65
-
Tables5
-
Figures3
-
- Figure 1. Theoretical framework
- Figure 2. Moderation effect of psychological contract on the relationship between career development and turnover intention
- Figure 3. Moderation effect of psychological contract on the relationship between work stress and turnover intention
-
- Table 1. Respondent demographics
- Table 2. Assessment result for the measurement model
- Table 3. Criterion for discriminant validity (HTMT)
- Table 4. Structural model assessment
- Table 5. R-Square
-
- Alatawi, M. A. (2017). Can transformational managers control turnover intention? SA Journal of Human Resource Management, 15(1), 1-6.
- Ali, D. N., & Ahmad, S. (2021). The impact of transformational leadership style on subordinates turnover intention in private high schools of district Swat. Ilkogretim Online, 20(2), 1498-1510.
- Ali, N., Ali, S., Ahsan, A., Rahman, W., & Kakakhel, S. J. (2014). Effects of leadership styles on job satisfaction, organizational citizenship behavior, commitment and turnover intention (empirical study of private sector schools’ teachers). Life Science Journal, 11(4), 175-183.
- Alias, N. E., Rohmanan, N. H., Ismail, S., Koe, W. L., & Othman, R. (2018). Factors influencing turnover intention in a Malaysian manufacturing company. KnE Social Sciences, 771-787.
- Alkarabsheh, O. H. M., Jaaffar, A. H., Wei Fong, P., Attallah Almaaitah, D. A., & Mohammad Alkharabsheh, Z. H. (2022). The relationship between leadership style and turnover intention of nurses in the public hospitals of Jordan. Cogent Business & Management, 9(1).
- Armstrong, M. (2012). Armstrong’s handbook of management and leadership: Developing effective people skills for better leadership and management. Kogan Page Publishers.
- Azeem, M. U., Bajwa, S. U., Shahzad, K., & Aslam, H. (2020). Psychological contract violation and turnover intention: The role of job dissatisfaction and work disengagement. Employee Relations, 42(6), 1291-1308.
- Bass, B. M. (1985). Leadership: Good, better, best. Organizational Dynamics, 13(3), 26-40.
- Bass, B. M., & Avolio, B. J. (1995). MLQ: Multifactor leadership questionnaire for research: Permission set. Mind Garden.
- Bawono, W., & Lo, S. J. (2020). Employee engagement as a mediator influences of work stress and career development to turnover intention in employee office of PT PKSS Central Office. Dinasti International Journal of Management Science, 1(5), 695-705.
- Belete, A. K. (2018). Turnover intention influencing factors of employees: An empirical work review. Journal of Entrepreneurship & Organization Management, 5(7), 23-31.
- Bravo, G. A., Won, D., & Chiu, W. (2019). Psychological contract, job satisfaction, commitment, and turnover intention: Exploring the moderating role of psychological contract breach in national collegiate athletic association coaches. International Journal of Sports Science & Coaching, 14(3), 273-284.
- Cao, Y., Lee, J., & Waung, M. (2023). Cultivating organizational attraction: A resource view on psychological contracts of career development among interns. Personnel Review, 52(1), 58-73.
- Chang, C. P., Chiu, L. Y., & Liu, J. (2017). A study on the relationship between well-being and turnover intentions among rural school teachers: School organizational climate as a moderating variable. Creative Education, 8(04), 523-538.
- Chin, C. L. (2018). The influence of job satisfaction on employee turnover intention in the manufacturing industry of Malaysia. Journal of Arts & Social Sciences, 1(2), 53-63.
- Chin, W.W. (1988). The partial least squares approach to structural equation modeling. Modern methods for business research. Lawrence Erlbaum Associates.
- Cohen, G., Blake, R. S., & Goodman, D. (2016). Does turnover intention matter? Evaluating the usefulness of turnover intention rate as a predictor of actual turnover rate. Review of Public Personnel Administration, 36(3), 240-263.
- Dewi, R. S., & Nurhayati, M. (2021). The effect of career development on turnover intention with job satisfaction and organizational commitment as mediators, study at PT Control Systems Arena Para Nusa. European Journal of Business and Management Research, 6(4), 11-18.
- Ding, H., Yu, E., Chu, X., Li, Y., & Amin, K. (2020). Humble leadership affects organizational citizenship behavior: The sequential mediating effect of strengths use and job crafting. Frontiers in Psychology, 11(65).
- Duran, F., Bishopp, D., & Woodhams, J. (2019). Relationships between psychological contract violation, stress and well-being in firefighters. International Journal of Workplace Health Management, 12(3), 120-133.
- Dwiyanti, R., Hamzah, H. B., & Abas, N. B. (2019). Job satisfaction, psychological contracts, and turnover intention: Role of social support as a mediator. International Journal of Research in Business and Social Science, 8(6), 96-104.
- Elian, S., Paramitha, C. D., Gunawan, H., & Maharani, A. (2020). The impact of career development, work-family conflict, and job satisfaction on millennials’ turnover intention in banking industry. Journal of Business and Management Review, 1(4), 223-247.
- Estreder, Y., Rigotti, T., Tomás, I., & Ramos, J. (2020). Psychological contract and organizational justice: The role of normative contract. Employee Relations, 42(1), 17-34.
- Farh, J. L., Tsui, A. S., Xin, K., & Cheng, B. S. (1998). The influence of relational demography and Guanxi: The Chinese case. Organization Science, 9(4), 471-488.
- Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
- French Jr, J. R., & Kahn, R. L. (1962). A programmatic approach to studying the industrial environment and mental health. Journal of Social Issues, 18(3), 1-47.
- Gerçek, M. (2018). The effects of transformational and transactional leadership styles on psychological contract: A managerial perspective. International Journal of Economics & Management, 12(2), 393-405.
- Gul, S., Ahmad, B., Rehman, S. U., Shabir, N., & Razzaq, N. (2012). Leadership styles, turnover intentions and the mediating role of organizational commitment. Information and Knowledge Management, 2(7), 44-51.
- Guo, J., Qin, X. L., Huang, J., & Yin, J. C. (2018). A study of the impact of transformational leadership on employees’ turnover intention. Shandong Social Sciences, 11, 166-171.
- Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-152.
- Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24.
- Hamstra, M. R., Van Yperen, N. W., Wisse, B., & Sassenberg, K. (2014). Transformational and transactional leadership and followers’ achievement goals. Journal of Business and Psychology, 29, 413-425.
- Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115-135.
- Herrera, J., & De Las Heras-Rosas, C. (2021). The organizational commitment in the company and its relationship with the psychological contract. Frontiers in Psychology, 11.
- Kurniawaty, K., Ramly, M., & Ramlawati, R. (2019). The effect of work environment, stress, and job satisfaction on employee turnover intention. Management Science Letters, 9(6), 877-886.
- Kuvaas, B., & Dysvik, A. (2010). Exploring alternative relationships between perceived investment in employee development, perceived supervisor support and employee outcomes. Human Resource Management Journal, 20(2), 138-156.
- Li, Q. J., & Chen, X. (2021). Research on the influence of leadership style on turnover intention of new generation employees in hotels. Journal of Huaiyin Teachers College: Social Sciences Edition, 43(6), 574-578.
- Long, C. S., Thean, L. Y., Ismail, W. K. W., & Jusoh, A. (2012). Leadership styles and employees’ turnover intention: Exploratory study of academic staff in a Malaysian College. World Applied Sciences Journal, 19(4), 575-581.
- Maaitah, A. M. (2018). The role of leadership style on turnover intention. International Review of Management and Marketing, 8(5), 24-29.
- Magbity, J. B., Ofei, A. M. A., & Wilson, D. (2020). Leadership styles of nurse managers and turnover intention. Hospital Topics, 98(2), 45-50.
- Manoppo, V. P. (2020). Transformational leadership as a factor that decreases turnover intention: A mediation of work stress and organizational citizenship behavior. The TQM Journal, 32(6), 1395-1412.
- Masood, S., Siddiqui, G. K., Lodhi, H., & Shahbaz, S. (2020). Effect of leadership styles on organizational citizenship behavior and employee turnover intention. Journal of Accounting and Finance in Emerging Economies, 6(2), 487-495.
- Merchant Jr, R. C. (2010). The role of career development in improving organizational effectiveness and employee development. Florida Department of Law Enforcement, 1(2), 1-17.
- Millward, L. J., & Hopkins, L. J. (1998). Psychological contracts, organizational and job commitment. Journal of Applied Social Psychology, 28(16), 1530-1556.
- Nadiri, H., & Tanova, C. (2010). An investigation of the role of justice in turnover intentions, job satisfaction, and organizational citizenship behavior in hospitality industry. International Journal of Hospitality Management, 29(1), 33-41.
- Nanjundeswaraswamy, T. S., & Swamy, D. R. (2014). Leadership styles. Advances in Management, 7(2), 57-62.
- Naseer, A., Perveen, K., Afzal, M., Waqas, A., & Gillani, S. A. (2017). The impact of leadership styles on staff nurses’ turnover intentions. International Journal of Academic Research in Business and Social Sciences, 7(12).
- Ng’ethe, J. M., Namusonge, G. S., & Iravo, M. A. (2012). Influence of leadership style on academic staff retention in public universities in Kenya. International Journal of Business and Social Science, 3(21), 297-302.
- Nnaji-Ihedinmah, N., Osisioma, H., & Ugwu, K. E. (2020). Psychological contract and employee performance in the construction industry in South-East Nigeria. The International Journal of Business & Management, 8(2), 259-265.
- Park, T., & Pierce, B. (2020). Impacts of transformational leadership on turnover intention of child welfare workers. Children and Youth Services Review, 108, Article 104624.
- Pratiwi, F., & Lo, J. S. (2020). Job satisfaction as a mediator of effect job stress and career development on employee turnover intention PT PKSS. Dinasti International Journal of Digital Business Management, 1(4), 580-592.
- Pravichai, S., & Ariyabuddhiphongs, V. (2018). Transformational leadership and turnover intention: The mediating effects of right speech (Samma Vaca) and trust in the leader. Journal of Management, Spirituality & Religion, 15(3), 253-272.
- Rahmania, & Rohilayati, D. (2023). Minimizing turnover intention with the approach of work pressure and work stress. Journal of Management Research and Studies, 1(1), 58-66.
- Shukla, A., Srivastava, R., & Eldridge, D. (rev. ed.). (2016). Development of short questionnaire to measure an extended set of role expectation conflict, coworker support and work-life balance: The new job stress scale. Cogent Business & Management, 3(1).
- Situmorang, N., Ramli, A. H., & Reza, H. K. (2023). Pengaruh pengembangan karir terhadap turnover intention melalui kinerja karyawan yang dimoderasi oleh budaya organisasi [The effect of career development on turnover intention through employee performance moderated by organizational culture]. Jurnal Lentera Bisnis, 12(3), 633-646. (In Indonesian).
- Soelton, M., & Atnani, M. (2018). How work environment, work satisfaction, work stress on the turnover intention affect university management. Journal Manajemen dan Bisnis Indonesia, 5(3), 439-448.
- Sulamuthu, G. A., & Yusof, H. M. (2018). Leadership style and employee turnover intention. Proceedings of the International Conference on Industrial Engineering and Operations Management (pp. 2298-2306).
- Sun, R., & Wang, W. (2017). Transformational leadership, employee turnover intention, and actual voluntary turnover in public organizations. Public Management Review, 19(8), 1124-1141.
- Wan, Q., Yuan, L., Yao, Z., & Zeng, L. (2023). The impact of R&D elements flow and government intervention on China’s hi-tech industry innovation ability. Technology Analysis & Strategic Management, 35(7), 857-874.
- Weng, Q., & McElroy, J. C. (2012). Organizational career growth, affective occupational commitment and turnover intentions. Journal of Vocational Behavior, 80(2), 256-265.
- Wibowo, T. S. (2022). Psychological contract theory relation to organizational citizenship behavior (OCB) of flight attendants. International Journal of Science, Technology & Management, 3(1), 144-152.
- Yang, X. (2023). A study of the impact of employees’ job happiness on turnover intention in high-tech enterprises. Times of Economy and Trade, 20(2), 100-102.
- Yukongdi, V., & Shrestha, P. (2020). The influence of affective commitment, job satisfaction and job stress on turnover intention: A study of Nepalese bank employees. Review of Integrative Business and Economics Research, 9(suppl_1), 88-98.
- Yuningsih, N. (2020). The effect of job satisfaction, career development and commitment to turnover intention in Cakrawala Mitra Bersama. Journal of Research in Business, Economics, and Education, 2(1), 380-390.
- Zahari, A. E., Supriyati, Y., & Santoso, B. (2020). The influence of compensation and career development mediated through employee engagement toward turnover intention of the permanent officers employees at the head office of PT Bank Syariah Mandiri. Journal of International Conference Proceedings, 3(1), 22-40.
-
-
Conceptualization
Liu Ru, Hadziroh Ibrahim
-
Data curation
Liu Ru
-
Formal Analysis
Liu Ru
-
Investigation
Liu Ru
-
Resources
Liu Ru, Hadziroh Ibrahim
-
Visualization
Liu Ru, Hadziroh Ibrahim
-
Writing – original draft
Liu Ru
-
Writing – review & editing
Liu Ru, Hadziroh Ibrahim
-
Methodology
Hadziroh Ibrahim
-
Project administration
Hadziroh Ibrahim
-
Supervision
Hadziroh Ibrahim
-
Conceptualization
-
The effect of strategic human resources management (SHRM) on organizational excellence
Problems and Perspectives in Management Volume 18, 2020 Issue #4 pp. 49-58 Views: 2519 Downloads: 1305 TO CITE АНОТАЦІЯHuman resources at different levels are the executives of organizational tasks toward excellence. Missing the track of human resources will leave the organization behind. The objective of this research is to investigate the effect of SHRM components on organizational excellence. The study was applied to industrial organizations in Industrial City in Northern Jordan. A quantitative approach was used to accomplish the objectives. A questionnaire was used to collect data. The questionnaire was composed of three parts: the first part designed to collect demographic data, the second part designed to collect information about SHRM (recruitment, training, development, and career development), the last part designed to collect information about organizational excellence. A simple random sample of 120 organizations’ managers was studied. The results showed that the data collection tool was reliable. The results showed that training was of high concern by managers to reach excellence, followed by organizational development, then career development, and the least evaluation was for recruitment. The SHRM components affect the components of organizational excellence (customer satisfaction, technology deployment, product quality, and competitiveness) (p < 0.05). Recruitment was the highest contributor to organizational excellence related to technology deployment, product quality, and competitiveness, but customer satisfaction was affected by development and career development. The study recommended that the organization connect the SHRM strategy with the other organization activities that lead to excellence with the recruitment process’s concentration as it affects the products of the organizations.
-
The effects of perceived organizational support and social comparison on work attitudes
Nuri Herachwati , Jovi Sulistiawan , Zainiyah Alfirdaus , Mario Gonzales B. N. doi: http://dx.doi.org/10.21511/ppm.16(1).2018.02Problems and Perspectives in Management Volume 16, 2018 Issue #1 pp. 12-21 Views: 2130 Downloads: 318 TO CITE АНОТАЦІЯThis study is based on the results of a survey research conducted by JobStreet Indonesia on its members, which has surprisingly found that more than 70% of employees lack clarity on the goals of their career. Drawing from the social exchange theory, employees tend to show positive work attitudes when they perceive that their organization paid attention to them. The objective of this study is to assess how significant the influence of Perceived Organizational Support (POS) is on career satisfaction, organizational commitment, and turnover intention. Besides organizational perspective, as stated by the social comparison theory, the way individuals perform both upward and downward comparisons could be expected to affect career satisfaction. Also, this research uses career commitment as a moderator variable that can strengthen or weaken the influence among variables, which is the employee’s commitment towards their organization and competitiveness within their respective work group. The research has found some interesting results. It was shown that there is no significant relationship between POS and career satisfaction, career satisfaction and turnover intention, organizational support and turnover intention, and both upward and downward social comparison and turnover intention. The moderating effects of career commitment were not proven. In comparison, all of the moderating effects of a competitive work group were proven together with the relationship between upward social comparison and turnover intention.
-
The school principal’s role as a leader in teachers’ professional development: the case of public secondary education in Athens
Miltiadis Chalikias , Ioanna Raftopoulou , Georgios Sidiropoulos , Grigorios L. Kyriakopoulos , Vassilis Zakopoulos doi: http://dx.doi.org/10.21511/ppm.18(4).2020.37Problems and Perspectives in Management Volume 18, 2020 Issue #4 pp. 461-474 Views: 1465 Downloads: 218 TO CITE АНОТАЦІЯThis research aimed to examine the role of leadership in the school environment and leadership’s contribution to the effectiveness of teachers’ professional development in the public secondary education of Athens to improve the learning process and school quality. More specifically, this study highlights the school principal's contribution as a leader in teachers’ professional development. The choice of leadership style (education, administrative, transformational, ethical, participatory, and contingent) positively impacts teachers’ professional development. Data were collected from 180 teachers of the public secondary education of Athens, involving lower secondary schools, upper secondary vocational and general schools, excluding private and other types of schools. SPSS software was used to perform quantitative analysis of the collected data. The results showed no statistically significant correlation between teachers’ gender, skills, characteristics, and abilities. However, it was observed that there is a statistically significant correlation between age, tolerance, and rejection of educational techniques on teaching practice. The evidence from this study confirmed a direct impact of the school principal’s training on teachers’ professional development. Finally, it was concluded that the school principal – the leader should work as a learning manager to lead teachers in professional development and as a learning manager and an inspiration for lifelong learning.