TL and OC from the Retail Sector in an Emerging Economy: Evidence from Vietnam

The paper analyzes the impact of transformational leadership (TL) on employees’ organizational commitment (OC) in the retail sector in Vietnam, an emerging economy. Based on social exchange theory, the study develops an analytical framework to clarify the relationship between TL and OC through idealized influence behavior (IIB), idealized influence attributes (IIA), inspirational motivation (IM), intellectual stimulation (IS), and individualized consideration (IC). The data were collected from a survey of full-time employees working in enterprises and were analyzed using partial least squares structural equation modeling (PLS-SEM). The research results confirm that IM (β = 0.29; p < 0.05) and IC (β = 0.25; p < 0.05) have the strongest positive effects on OC in order to reduce turnover rates, improve service quality, and clarify the degree of influence of different aspects.