Leadership styles and employees’ commitment toward the national digital payment strategy: Multilevel mediating role of job satisfaction

Abstract

This study examined the effect of leadership styles on employees' organizational commitment towards the National Digital Payments Strategy (NDPS) and the mediating role of job satisfaction. A self-administered questionnaire was employed to obtain survey data from twelve microfinance institutions in Ethiopia. A simple random sampling technique was used to select 502 employees to participate in the survey. Covariance-based structural equation modelling was used to examine the study hypotheses. The data were analyzed using SPSS and AMOS. The result of the study showed that leadership style indicators such as transformational leadership qualities of leader (idealized influence, intellectual stimulation, individual consideration and inspirational motivation) and transactional leadership qualities of leader (contingent reward, management by exception-active) have positive and significant effect on employees' organizational commitment toward the NDPS. Furthermore, the findings showed that job satisfaction mediated the relationship between leadership style qualities of leader (inspirational motivation, idealized influence, intellectual stimulation, individual consideration, contingent reward and management by exception-active) and employees' organizational commitment toward the NDPS. The study offers valuable insights for managers, stakeholder and policymakers in understanding the effect of leadership style on employees' organizational commitment toward the NDPS.

Keywords:

• digital transformation
• information technology
• job satisfaction
• leadership styles
• employees’ commitment

JEL classification:

• N27
• M21, M15