International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Effects of Transformational Leadership on Salesperson’s Turnover Intention
Esmeraldo D. Dimaculangan, Jr.; Hector M. Aguiling

Reducing the turnover of salespeople who are meeting and exceeding goals can make a significant contribution to a firm’s bottom line. This study was designed to examine the direct and indirect effects of transformational leadership on salesperson’s turnover intention through ethical climate, person-organization-fit, and organizational commitment. Drawing on data from 387 salespeople from six companies from the pharmaceutical, real estate, and food and beverage industries, a latent variable model was tested using structural equation modeling with the use of AMOS version 19. A survey questionnaire was used to gather the data while multi-stage sampling was utilized to choose the respondents. The results from the study indicate that (1) transformational leadership was found to directly decrease turnover intention, and (2) indirectly reduce turnover intention through perceived ethical climate, person-organization-fit, and organizational commitment. Given the findings of this study, firms are provided with insights into how transformational leadership may contribute to managing turnover which should lead to better company financial performance in an Asian market. Moreover, this study provides support that U.S.-based scales used to measure sales management issues can be adapted into a Philippine framework.

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