How financial and non–financial rewards moderate the relationships between transformational leadership, job satisfaction, and job performance

Figures & data

Figure 1. Research framework.

Table 1. Convergent validity

Construct	Α	CR	AVE
Transformational leadership	0.899	0.916	0.500
Financial rewards	0.835	0.890	0.669
Non–financial rewards	0.842	0.881	0.517
Job satisfaction	0.829	0.874	0.538
Job performance	0.851	0.887	0.528

Table 2. Means, Standard Deviations (SD), intercorrelations, and discriminant validity

Construct	Mean	SD	TL	FR	NR	JS	JP
TL	5.17	1.05	(0.707)
FR	5.42	1.21	0.282***	(0.818)
NR	5.41	1.04	0.441***	0.473***	(0.719)
JS	5.42	1.01	0.463***	0.281***	0.439***	(0.733)
JP	5.55	0.91	0.520***	0.287***	0.513***	0.618***	(0.727)

Note. *** p < 0.001; Square root of AVE in parentheses along the diagonal.

TL = Transformational leadership; FR = Financial reward; NR = Non–financial reward; JP = Job performance.

Table 3. The results of regression analysis of direct effects

Variables	JP	JS	JP	JP
	Model 1	Model 2	Model 3	Model 4
TL	0.520***	0.463***		0.297***
JS			0.618***	0.480***
R	0.520	0.463	0.618	0.671
R2	0.270	0.215	0.381	0.451
Adj.R2	0.268	0.212	0.380	0.448
F	121.709	89.960	202.897	134.651

Note. *** p < 0.001; β = Standardized coefficient.

TL = Transformational leadership; JS = Job satisfaction, and JP = Job performance.

Table 4. The results of the indirect effects of transformational leadership on job performance

Direct effects and total effect				Β		SE	T	p
TL →JP				0.4518		0.0410	11.0322	.0000
TL → JS				0.4485		0.0473	9.4847	.0000
JS → JP, TL is controlled				0.4311		0.0415	10.3927	.0000
TL →JP, JS is controlled				0.2585		0.0401	6.4387	.0000
Indirect effect and significance using the normal distribution
	Value		SE	LL95CI		UL95CI	z	p
Sobel	.1933		.0277	.1391		.2476	6.9881	.0000
Bootstrap results for indirect effects
	Data		SE	LL95CI		UL95CI	Mean
Effect	.1933		.0290	.1395		.2531	0.1927	.0000

Note. TL = Transformational leadership; JP = Job performance; JS = Job satisfaction.

N = 331; Number of Bootstrap Resamples = 5000; LL = Lower Limit, CI = Confidence Interval; UL = Upper Limit; β = Unstandardized Coefficient.

Table 5. The results of the moderating effects of financial and non–financial rewards on the relationship between transformational leadership and job performance

Variables		JP
	Model 5	Model 6	Model 7	Model 8
TL		0.473***		0.365***
FR	0.287***	0.245**
TL x FR		–0.140**
NR			0.513***	0.343***
TL x NR				–0.61
R	0.287	0.557	0.513	0.612
R2	0.083	0.310	0.264	0.374
Adj.R2	0.080	0.304	0.261	0.368
F	29.234	48.467	117.716	65.124

Note. * p < 0.05; ** p < 0.01; *** p < 0.001; β = Standardized coefficient.

TL = Transformational leadership; FR = Financial reward; NR = Non–financial reward; JP = Job performance.

Figure 2. Moderating effects of financial rewards on the link between transformational leadership and job performance.

Table 6. The results of the moderating effects of financial and non–financial rewards on the relationship between job satisfaction and job performance

Variables	JP
	Model 9	Model 10	Model 11	Model 12
JS		0.583***		0.486***
FR	0.287***	0.120**
JS x FR		–0.024
NR			0.513***	0.300***
JS x NR				–0.017
R	0.287	0.632	0.513	0.674
R2	0.083	0.399	0.264	0.454
Adj.R2	0.08	0.394	0.261	0.449
F	29.234	71.531	117.716	90.751

Note. * p < 0.05; ** p < 0.01; *** p < 0.001; β = Standardized coefficient.

JS = Job satisfaction; FR = Financial reward; NR = Non–financial reward; JP = Job performance.