Contradictory results on the mediating roles of two dimensions of trust between transformational leadership and employee outcomes

The purpose of this paper is to examine the mediating roles of cognitive and affective trusts between the transformational leadership (TL) and employee outcomes (task performance (TP), organizational commitment (OC), and employee turnover intention (ET)).

This study samples 384 bank employees and records their self-reported responses for closed-ended items in the survey. SmartPLS 3.0 is used for the analysis.

The results indicate that affective trust (AT) and cognitive trust (CT) mediate between the transformation leadership and OC positively. Moreover, AT and CT both mediate negatively between TL and TP. Finally, both dimensions of trust as second-order constructs mediate positively between the TL and ET. The results related to the ET and TP are highly intriguing and in conflict with the simple and non-contextual statement of the social exchange theory.

TL, AT, and CT have greater importance for the managers to increase the positive work-related outcomes of employees. Moreover, the results related to TP and ETs are highly applicable to the managers and business.

The originality of the study lies in use of the SmartPLS 3.0 for analysis as it offers unique and precise measures of the measurement model like HTMT ratio and does not rely on the co-variance. Moreover, mediating roles of AT and CT have never been tested before in the given settings. Finally, results defy the simple statements of the theory and call for the context-based theorized empirical studies. In doing so, it calls for the post-modernist stage (case-by-case contextual treatment of theory) of HR and management literature.