Transformational leadership and psychological empowerment: The mediating effect of organizational culture in Indian retail industry

Abstract

Purpose

The purpose of this paper is to examine the role of transformational leadership in psychological empowerment in Indian retail industry. This study also tries to examine whether organizational culture plays a mediating role in the relationships between transformational leadership and psychological empowerment.

Design/methodology/approach

A sample of 310 respondents was randomly selected from different Indian retail organizations for the study. Data collections were carried out using a set of standardized questionnaires. Raw data were analyzed using SPSS 20.0 and process plugin of Hayes for mediation analysis.

Findings

The empirical investigations of the study have shown that transformational leadership is positively related to psychological empowerment. The study also found partial mediation of organizational culture between transformational leadership and psychological empowerment.

Research limitations/implications

First of all, the sample size of the study is relatively small (n=310). The study is limited to the employees of eastern Indian retail organizations. Second, the common method bias is presumed to influence and inflate the relationships between the variables of the study as the data on all three variables were collected at the same point of time from respondents.

Practical implications

The road map presented in this paper may be helpful for the retail executives to diagnose organizational culture and leadership styles prevailing in the organization and their influence on psychological empowerment. The study may be helpful for retail managers to develop a desirable culture through the practice of transformational leadership that would enhance the empowerment process.

Originality/value

This paper adds value to the limited body of knowledge about the association among transformational leadership, psychological empowerment, and organizational culture. The findings presented in this paper would be beneficial for Indian researchers, OD experts and organization scientists in developing a culture of empowerment by the help of transformational leadership. Unique statistical tools have been used for mediation analysis.

Citation

Pradhan, R.K., Panda, M. and Jena, L.K. (2017), "Transformational leadership and psychological empowerment: The mediating effect of organizational culture in Indian retail industry", Journal of Enterprise Information Management, Vol. 30 No. 1, pp. 82-95. https://doi.org/10.1108/JEIM-01-2016-0026