Understanding Transformational Leadership – Employee Performance Links: The Role of Trust and Commitment

Abstract

This study analyzes the influences of transformational leadership on employee performance through the mediating role of trust and commitment. Although these indirect interrelations are very important for enhancing employee performance, prior research has not usually explored them. The study confirms these influences empirically, basing the analysis on a sample of 25 Vietnamese firms with 326 employees. The results reveal that (1) transformational leadership influences employee performance positively through employee trust and organizational commitment; (2) employee trust influences employee performance, both directly and indirectly through organizational commitment; (3) organizational commitment influences employee trust positively.

Keywords: Transformational leadership, employee trust, organizational commitment, employee performance