Leadership Style, Organizational Commitment, and Organizational Citizenship Behavior on Credit Union in Indonesia

Abstract

This study investigates the relationship between transactional and transformational leadership styles, organizational commitment, and organizational citizenship behavior (OCB) in the context of Credit Union. Respondents are 207 non-managerial employees of Credit Union in Indonesia. Data was collected by questionnaire and analysed by using SEM. The result shows that transformational leadership has positive effect on organizational commitment, and organizational commitment has effect on OCB-coworker targeted. However, transactional leadership has no significant effect on organizational commitment. The results of this study provide consideration suggestions regarding appropriate leadership styles to enhance employee commitment for achieving high performance and sustainability of CU in Indonesia.

Keywords: Transformational leadership, Transactional leadership, Organizational Commitment, Organizational Citizenship Behavior, Credit Union

DOI: 10.7176/EJBM/11-14-09

Publication date:May 31^st 2019