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The aim of this study is to investigate the relationships between transformational leadership (TL), informal learning and job involvement. The study delineates two pathways from TL to job involvement. The first is an indirect link through informal learning on job involvement, while the second pathway focuses on the moderating role of self-efficacy on the relationship between TL and informal learning.

Survey data were gathered from 596 employees of small services firms in Pakistan. The proposed hypotheses were examined using structural equation modeling.

The results reveal that TL is indirectly related to job involvement through informal learning. The study also shows that self-efficacy strengthens the relationship between TL and informal learning.

Previous studies have overlooked the potential influence of TL on job involvement through the mechanism of informal learning. The current study addresses this gap by examining informal learning as a mediator between TL and job involvement. Furthermore, the study provides several theoretical and managerial implications for research and practice.