Does transformational leadership concurrently influence employee productivity and well-being? Testing a dual-influence leadership model

Abstract

This study adds to the leadership literature by exploring the possible influence of transformational leadership on employee productivity and well-being simultaneously. Drawing on the leadership literature, transformational leadership theory, and job demands-resources theory, we proposed a dual-influence leadership model to evaluate whether transformational leadership behavior (TLB) has a direct impact on employees' productivity (job performance) and well-being (emotional exhaustion) concurrently. Furthermore, we postulated and assessed the indirect effect of TLB on job performance and emotional exhaustion via two work stressors (work-family conflict and workplace anxiety). Self-report data was acquired from Greek employees (N = 574; 84% female) working in the healthcare industry. The data was analyzed using partial least squares structural equation modeling (PLS-SEM). Research findings indicate that TLB not merely enhances job performance but also decreases emotional exhaustion. Moreover, TLB seems to have an indirect effect on job performance by diminishing workplace anxiety as well as an indirect effect on emotional exhaustion by lowering both work-family conflict and workplace anxiety. Theoretical contributions, practical implications, and future research directions are discussed. As far as we know, no theoretical or empirical attempt has been made to conceptualize a framework that correlates transformational leadership behavior to job performance, emotional exhaustion, work-family conflict, and workplace anxiety.