Knowledge Management - A Mediating Link Between Leadership Styles and Employee Turnover Intentions in Small and Medium Scale IT or ITES Organizations of North Indian Region

Abstract

Purpose: The purpose of this paper is to address three of the theoretical and empirical questions on two main leadership styles – transformational and transactional leadership – what effect both transformational and transactional leadership have on employees’ turnover intentions of executives working in Small and Medium IT/ITES organizations of north Indian region, what is the direct effect of implementation of knowledge management process (KMP) on employee turnover intentions, and what role it plays in between leadership styles (transactional and transformational) and turnover intentions. Design/Methodology/Approach: A cross-sectional exploratory study was conducted to determine the concepts and relationships. Standardized questionnaires were used to collect data from sample of 250 employees working at executive level from 20 small and medium Indian IT/ ITES organization situated in north Indian region [Delhi (3), Haryana, (7) UP (6), and Punjab (4)] on the basis of financial turnover (Rs. 50–100 Cr.) and size of the organization from 50 to 100 employees. Data were analysed by using SPSS-23 with Hayes Process Plugin and Amos-21software. Findings: A significant negative relation of transactional leadership style and transformational leadership with employee turnover intentions was observed. Also, both the leadership styles were positively associated with KMP and KMP was again negatively linked with employee turnover intentions. Mediation analysis also indicated the full mediation of KMP but only for transformational leaders and played no role in case of transactional leadership. The effects were significant at 95% of confidence level. Practical Implications: Employers struggling with turnover intentions must emphasize on hiring effective leaders who can efficiently implement proper knowledge management systems, which include creating, sharing, absorbing, and receptivity of knowledge for executives.

Keywords: Turnover Intention, Transactional Leadership, Transformational Leadership, Knowledge Management, Leadership Style

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