







































Business Management Research and Applications: A Cross Disciplinary Journal 

1  

 

 

The Impact of the Four Transformational Leadership 

Dimensions on Organizational Commitment in Small and 

Medium-Sized Organizations in the US 
 

Michael O’Malley, DBA | Columbia Southern University, Orange Beach, AL, USA 

Contact: mpo203@yahoo.com 

 

Abstract 
 

Research has shown that transformational leadership is linked to higher employee satisfaction, 

organizational commitment, innovation, and overall performance. It has been particularly 

effective in organizations seeking to drive change, inspire creativity, and retain top talent. This 

study explores the impact of transformational leadership on employee organizational 

commitment in small and medium-sized enterprises (SMEs) in the United States, focusing on the 

four key dimensions of transformational leadership: inspirational motivation, intellectual 

stimulation, individualized consideration, and idealized influence. While prior research has 

established a relationship between leadership styles and employee outcomes such as job 

satisfaction, loyalty, and productivity, there is limited understanding of how each 

transformational leadership dimension influences organizational commitment, particularly within 

SMEs. This quantitative correlational study surveyed 159 employees from various non-

governmental industries in the US, including healthcare, manufacturing, and technology, to 

assess how each leadership dimension affects employee commitment. The findings provide 

insights for SMEs seeking to reduce turnover and improve leadership effectiveness. 

Understanding these relationships is critical for organizations striving to retain talent and foster a 

committed workforce in an increasingly competitive business environment. 

 

Keywords: Transformational leadership, organizational commitment, SME (Small and Medium-

Sized Enterprise. 

 

 

 

 

mailto:mpo203@yahoo.com


November 2025 | Volume 4. Number 3 

2  

Introduction 
 

Leadership theories have evolved from traditional, transactional approaches to more 

contemporary, transformational models. As conceptualized by Bass and Avolio (1993), 

transformational leadership has gained prominence for its emphasis on inspiring and motivating 

followers to achieve higher levels of performance and commitment. However, the impact of each 

of the four dimensions of transformational leadership on employee organizational commitment 

has yet to be adequately researched, particularly in small and medium-sized enterprises (SMEs) 

in the United States. Each of the four dimensions of transformational leadership may have a 

different impact on employee organizational commitment, and this information can be critical to 

SMEs seeking to improve leadership effectiveness. This study aims to provide details on the 

relationships among the four specific dimensions of transformational leadership, inspirational 

motivation, intellectual stimulation, individualized consideration, and idealized influence, and 

organizational commitment in SMEs, thereby improving leadership practices that can help 

reduce undesired turnover.  

Leadership practices can significantly influence employee satisfaction and commitment. 

Insights from this study can inform leadership development programs, helping organizations 

identify future leaders' key traits and behaviors and develop a more effective and adaptable 

leadership pipeline. Focusing the research on SMEs is purposeful because SMEs experience 

more employee turnover than large corporations (US Bureau of Labor Statistics, 2020). Large 

corporations have more resources to maintain employees (Gelencsér et al., 2024). SMEs must 

work smarter to retain their employees. The research supports SMEs aiming to improve 

organizational commitment. 

 

Background 
 

Several key theorists and seminal thinkers have significantly influenced the field of 

transformational leadership. James MacGregor Burns introduced the concept of transformational 

leadership in his 1978 book Leadership (Burns, 1978). Burns distinguished between 

transactional and transformational leadership, emphasizing the latter as a process in which 

leaders and followers raise one another to higher levels of morality and motivation. Building on 

Burns' work, Bernard Bass further developed the theory of transformational leadership in the 

1980s. His 1985 book, Leadership and Performance Beyond Expectations (Bass, 1985), 

expanded on the idea by identifying specific behaviors and characteristics of transformational 

leaders. Bass also introduced the Multifactor Leadership Questionnaire (MLQ) to empirically 

measure transformational leadership. Bruce J. Avolio collaborated extensively with Bass and has 

contributed significantly to research on transformational leadership. Avolio refined the MLQ and 

explored the developmental aspects of transformational leadership, emphasizing its role in 

organizational change and effectiveness (Bass & Avolio, 2000). Bass and Avolio developed the 

four dimensions of transformational leadership, often referred to as the "4 I's”.  

 

The four dimensions are: 

 

Idealized Influence (II): Leaders function as role models and are admired, respected, and 

trusted. They demonstrate high standards of ethical and moral conduct and are consistent, 

dependable, and lead by example. 



Inspirational Motivation (IM): Leaders inspire and motivate followers by providing 

meaning and challenge to their work. They communicate a clear, appealing, inspiring 

vision that expresses confidence and enthusiasm. 

Intellectual Stimulation (IS): Leaders encourage innovation and creativity by challenging 

assumptions and soliciting new ideas from followers. They support followers in trying 

innovative approaches, developing their critical thinking skills, and stimulating and 

encouraging a free exchange of ideas within the organization. 

Individualized Consideration (IC): Leaders pay special attention to each follower's needs 

for achievement and growth by acting as a coach or mentor. They provide individualized 

support, acknowledge each follower's unique contributions, and provide opportunities for 

learning and growth (Bass & Avolio, 1993). 

 

These dimensions work together to create an environment in which followers are 

motivated to achieve higher performance levels and are committed to the organization's goals. 

John P. Meyer and Natalie J. Allen are key figures in the study of organizational commitment. 

Meyer and Allen (1991) divided organizational commitment into three types of commitment 

(affective, normative, and continuous commitment. When viewed together, all three types of 

commitment negatively affect turnover intention and actual turnover (Robbins & Judge, 2017).  

Raymond Mowday is another prominent figure in the field of organizational behavior, 

particularly known for his work on organizational commitment. Mowday, along with Richard 

Steers and Lyman Porter, developed the Organizational Commitment Questionnaire (OCQ), 

which has been widely used to measure employees' affective commitment to their organizations. 

According to Mowday, organizational commitment is "an attitude or orientation toward an 

organization that connects and reinforces a person's identity with the organization" (Mowday et 

al., 1979, p. 2). Employees with greater organizational commitment are more focused on their 

work with consumers, clients, service providers, supervisors, workgroups, occupations, and 

organizations, and they act more positively in these relationships (Bingham et al., 2013).  

 

Literature Review 
 

Transformational Leadership 

 

Several scholars and practitioners have expanded on and supported Bass and Avolio's 

transformational leadership theory. Lim et al. (2017) suggested that transformational leadership 

significantly impacts employee turnover intention. Improved transformational leadership results 

in greater job satisfaction and organizational commitment, which, in turn, reduces employees’ 

turnover intention (Lim et al., 2017). The study by Gelencsér et al. (2024) focused on employee 

retention across small and medium-sized enterprises (SMEs) and large enterprises within a 

dynamically evolving business environment. In SMEs, retention often hinges on personal 

relationships, flexible work conditions, and opportunities for broader responsibilities (Gelencsér 

et al., 2024). Conversely, large enterprises tend to rely on formalized structures, such as career 

development programs, competitive compensation packages, and structured employee 

engagement initiatives (Gelencsér et al., 2024).  

Mohammed (2020) indicated that SME managers should take appropriate measures to 

identify employees' needs and concerns by communicating openly and effectively with them. 

Sincere communication with constructive feedback may foster coordination between employees 



November 2025 | Volume 4. Number 3 

4  

and departments and reduce employee turnover (Mohammed, T., 2020). Employees who felt 

proud of their organization were more likely to remain with it, and working in an ethical 

environment enhances employees' commitment (Yasin, 2021). Yasin further noted that 

responsible organizational leadership focuses on employees' personal growth and establishes a 

caring climate, making employees want to remain (Yasin, 2021).  

By investing in transformational leadership practices that foster employee commitment, 

SMEs can reduce turnover rates, minimize recruitment costs, and maintain a talented, motivated 

workforce (Gutu et al., 2022). Manoppo (2020) examined how transformational leadership 

affects turnover intention, with work stress and organizational citizenship behavior (OCB) as 

mediators. Transformational leaders help reduce work stress by creating a positive and 

empowering work environment, which can decrease employees' intention to quit (Manoppo, 

2020). 

 

Organizational Commitment 

 

The available literature demonstrates a significant relationship between organizational 

commitment and turnover (Abid et al., 2019; Silitonga et al., 2020; Yu et al., 2019). Several 

scholars have researched variables related to organizational commitment, including job 

satisfaction, mentoring, productivity, and innovation (Afsar & Umrani, 2020; Al-Ahmadi & 

Kasztelnik, 2021; Bhargavi & Yaseen, 2016; Durmishi & Popovski, 2020; Hadi & Tola, 2019; 

Laksmana & Riana, 2020; Paais & Pattiruhu, 2020). These researchers found that organizational 

commitment can be developed in various ways. Transformational leadership is effective, but it is 

just one of the possible ways of doing so. Authors agree that the independent variable, 

transformational leadership, is one of the most popular leadership theories used in organizational 

research and has been linked to organizational commitment (Ausat et al., 2022; Keskes et al., 

2018; Rahmatullah et al., 2022; Silitonga et al., 2020).  

Dalton (2023) also explored how transformational leadership influences organizational 

commitment, focusing on the mediating role of organizational trust. The study showed that trust 

enhances the effectiveness of transformational leadership in fostering employee commitment 

(Dalton, 2023). Nguon's (2022) article conceptualized how transformational leadership 

influences job satisfaction, innovative behavior, and work performance. The research showed 

that transformational leadership helps leaders and employees improve their abilities and 

knowledge, motivates them, and prevents them from leaving their jobs (Nguon, 2022). Ratina et 

al. (2021) examined the impact of transformational leadership on employees' affective 

commitment, with job satisfaction and organizational culture acting as intervening variables. The 

findings indicated that transformational leadership positively affected commitment, and both job 

satisfaction and organizational culture mediate this relationship (Ratina et al., 2021).  

Considering employees’ organizational commitment is critical for predicting employee 

retention (Yu et al., 2019). Employees committed to their organization are more likely to remain 

with the company and exhibit higher levels of job satisfaction (Benson, 2018; Gumus et al., 

2018). Organizations with elevated levels of employee commitment experience greater 

productivity, innovation, and overall performance (Fant, 2019). Research by Abid et al. (2019) 

indicated that a supportive work environment, leadership, and job autonomy enhance employees' 

vitality and learning, thereby fostering greater organizational commitment. Marta et al. (2021) 

suggested that organizations can enhance employee commitment by enriching job roles, 

empowering employees, and promoting work motivation and satisfaction. By addressing these 



factors, organizations can create more committed, engaged, and loyal workforces, leading to 

long-term organizational success (Marta et al., 2021). Haque et al. (2019) found that leadership 

characterized by ethical behavior and concern for stakeholders positively influenced 

organizational commitment and lowered turnover.  
 

Methods 
 

This study adopted a quantitative, correlational methodology to examine the relationship 

between the four dimensions of transformational leadership (independent variables) and 

organizational commitment (dependent variable). Quantitative research uses large sample sizes 

to quantify the problem by generating numerical data transformed into usable statistics (Tominc 

et al., 2018). This study's independent variables are the four dimensions of transformational 

leadership: inspirational motivation, intellectual stimulation, individualized consideration, and 

idealized influence. Organizational commitment is the dependent variable. This study enhances 

understanding of how the dimensions affect organizational commitment and how SMEs can 

improve it, thereby reducing costly turnover.  

 

Research Question and Hypotheses 

 

What is the relationship between employee perceptions of idealized influence, individual 

consideration, inspirational motivation, intellectual stimulation, and organizational commitment? 

 

Null hypothesis: There is no statistically significant relationship between employee perceptions 

of idealized influence, individual consideration, inspirational motivation, intellectual stimulation, 

and organizational commitment. 

 

Alternative hypothesis:  There is a statistically significant relationship between employee 

perceptions of idealized influence, individual consideration, inspirational motivation, intellectual 

stimulation, and organizational commitment. 

 

Population and Sample 

 

The target population was employees aged 18 or older working for SMEs in the US. 

SurveyMonkey, an online survey platform, was used to administer the survey, and its database 

was used to select participants who met the qualifications. Qualified participants were provided 

with a link to complete the research survey on SurveyMonkey. This link allowed potential 

participants to review information on consent, responsibility, and accountability, giving them 

complete control over their decision to participate. Survey screening questions on 

SurveyMonkey asked participants to identify their age, gender, geographic location, organization 

size, and income level. A minimum of 159 participants were required for the study. The 159 

participants were determined using G*Power 3.1 software application for an F-test family linear 

multiple regression model, considering an effect size of .10, an error probability α of .05, and a 

required statistical power of .90.  

 

Data Collection Procedures 

 



November 2025 | Volume 4. Number 3 

6  

        Once potential participants were selected, they were asked to read the study information and 

choose to participate or decline. Only participants who signed the informed consent form and 

answered ‘Yes’ were allowed to proceed with the survey. For survey participants, confidentiality 

was assured, and informed consent was obtained via SurveyMonkey at the beginning of the 

survey. Participants who agreed to participate in the study were asked to complete two surveys. 

To maintain anonymity, no personally identifiable information, such as names or Social Security 

numbers, was collected. The recruitment letter served as the survey preamble, and at the 

beginning of the survey, participants were asked to complete the informed consent form, which 

also allowed them to opt out. The survey was opened and remained open until the established 

number of completed surveys was reached, at which point it was closed. The researcher 

presumed that participants were honest and upfront about their perceptions of leadership styles 

and their effects on organizational commitment.  

 

Survey Instruments 

 

The first survey instrument included validated scales to measure transformational 

leadership using the Multifactor Leadership Questionnaire (MLQ) developed by Bass and Avolio 

(2000). The MLQ is the most widely used instrument to assess transformational leadership 

theory (Kirkbride, 2006) and is considered the best-validated measure of transformational and 

transactional leadership (Ozaralli, 2003). The MLQ captures a wide range of leadership 

behaviors, including transformational, transactional, and laissez-faire styles, providing a holistic 

view of a leader's approach. It emphasizes transformational leadership, which has been shown to 

correlate with higher employee engagement, innovation, and organizational success (Muenjohn 

& Armstrong, 2008).  

        The validity of the MLQ-5x, developed by Bass and Avolio (2000), has been extensively 

studied, yielding several key findings. Construct and convergent validity were tested against the 

Transformational Leadership Inventory (TLI) using confirmatory factor analysis for factorial 

validity (Rowold, 2005). Rowolds’ results indicated a significant fit of the data to a nine-factor 

model. The MLQ also performed well in terms of convergent validity, showing a strong 

correlation (> 0.7) with the existing measures of leadership in the literature, including the 

Leadership Practices Inventory, the Implementation Leadership Scale, and the Multifactor 

Leadership Questionnaire (Braathu et al., 2022). Antonakis (2001) also studied the validity of the 

MLQ-5x. Antonakis found that it demonstrated solid validity, ranging from .74 to .94. The 

results of these studies suggest a strong correlation between the MLQ and established measures 

of leadership, thus confirming the tool's reliability as a valid measure of leadership. 

        Reliability was also tested using internal consistency (Cronbach, 1951), interclass 

correlation (ICC), and test-retest reliability (Rowold, 2005). Rowold calculated Cronbach's alpha 

for each MLQ subscale, and the results were very good, ranging from .84 to .97. The alpha 

reliability coefficient for the MLQ ranges from .60 to 0.92 (Avolio et al., 1999). Using interclass 

correlation (ICC), Rowold (2005) found that the interrater agreement for each subscale was 

satisfactory or high. Rowold also determined that the test-retest reliability was high and 

significant. In summary, the MLQ-5x is a valid and reliable instrument for measuring leadership 

factors.  

Organizational commitment was measured using the Organizational Commitment 

Questionnaire (OCQ) developed by Mowday et al. (1979). The OCQ is also a widely used 

instrument that identifies 15 items conveying three characteristics of organizational commitment, 



with responses rated on a 7-point Likert-type scale. The OCQ covers key aspects of 

organizational commitment, including emotional attachment to the organization, belief in the 

organization's values, and a desire to maintain membership. According to Mowday, convergent 

validities across six diverse samples range from .63 to .74, with a median of .70, indicating 

consistent evidence of convergent validity (Mowday et al., 1979). In an additional study, 

Cronbach's alpha for the OCQ typically ranged from 0.82 to 0.93 (Carmines & Zeller, 2022). A 

2020 study by Verma found a Cronbach alpha of 0.79. A study by Cohen (2007) also showed 

strong internal consistency across cultures, with Cronbach's alpha above 0.80. In summary, 

studies have found that the OCQ correlates well with other measures of job satisfaction, turnover 

intentions, and organizational citizenship behavior, providing evidence of convergent validity.  

The reliability of the OCQ is also well documented. The fifteen-item OCQ is designed to 

assess respondents’ loyalty and desire to remain with the organization, their beliefs in and 

acceptance of the organization's values and goals, and their willingness to put in extra effort to 

help the organization succeed (Yousef, 2003). According to Kanning and Hill (2018), Cronbach's 

alpha values lie between .82 and 93, and internal consistency examination resulted in a 

satisfactory reliability value in each case, with Cronbach's alpha ranging between .72 and .93. 

Cronbach's coefficient alpha reliability estimates for the seven dimensions of a learning 

organization were acceptable, showing results above .80 (Yang et al., 2004). Dunham et al. 

(1994) also found that the OCQ demonstrated high reliability, with Cronbach’s alpha above 0.85. 

In summary, the OCQ has been extensively tested for validity and reliability, and it is regarded 

as a reliable and valid instrument for measuring organizational commitment (Mowday et al., 

1979).  

 

Data Analysis 

 

Research data was collected from 159 qualified participants. Demographic information 

for the participants is presented in Table 1. The information shows an even mix of males and 

females, as well as a diverse mix of ages, geographic locations, organization sizes, and income 

levels. This data indicates a reasonable mix of respondents that adequately represents the study's 

target population. Table 1 shows the descriptive statistics of the participants. 

 

Table 1 

Descriptive Statistics of Participants 

Characteristic   Full Sample 

   N % 

Age 

<18 

18-29 

30-44 

45-60 

>60 

Total 

   

0 

25 

52 

59 

23 

159 

 

0 

15.7 

32.7 

37.1 

14.5 

100 



November 2025 | Volume 4. Number 3 

8  

Gender 

Male 

Female 

Prefer not to say 

Total 

   

75 

83 

1 

159 

 

47.2 

52.2 

0.6 

100 

Geographic Location 

New England 

Atlantic 

East Central 

West Central 

Mountain 

Pacific 

Prefer not to say 

Total 

   

5 

48 

40 

24 

7 

30 

5 

159 

 

3.1 

30.2 

25.2 

15.1 

4.4 

18.9 

3.1 

100 

Income Level ($) 

0-24,999 

25,000-49,999 

50,000-74,999 

75,000-99,999 

100,000-199,000 

>200,000 

Prefer not to say 

Total 

# of Employees 

1-10 

11-50 

51-200 

201-500 

>500 

Total 

   

22 

32 

28 

33 

27 

11 

6 

159 

 

0 

59 

62 

38 

0 

159 

 

13.8 

20.1 

17.7 

20.7 

17.0 

6.9 

3.8 

100 

 

0 

37.1 

39.0 

23.9 

0 

100 

Note: Demographic data indicates a good representation of the target population. 

The software tools Microsoft Excel and R Commander were used to analyze the survey 

data. These tools are commonly used in research settings and are renowned for their ability to 

analyze statistical data (McGrath, 2015; Schumacker, 2015). The statistical technique used for 

data analysis was a linear multiple regression test. Multiple regression tests are appropriate when 

there is more than one independent variable, and the objective is to use them to predict an 

outcome (Pederson, 2017). Certain assumptions need to be met for the results of a multiple 

regression analysis to be valid. These assumptions ensure that the model's estimates are reliable 

and the statistical inferences (e.g., hypothesis tests, confidence intervals) are valid. Here are the 

key assumptions for multiple regression: 

• Linearity: The relationship between independent and dependent variables should be 

linear. Non-linear relationships can lead to biased estimates. 

• Independence of Errors: The residuals (errors) should be independent. The Durbin-

Watson test can detect violations, such as autocorrelations. 



• Homoscedasticity: The variance of residuals should be constant across all levels of 

the independent variables. Heteroscedasticity can affect the efficiency of estimates 

and the validity of hypothesis tests. 

• Normality of Residuals: The residuals should be normally distributed. This 

assumption is particularly important for valid hypothesis testing. 

• No Multicollinearity: The independent variables should not be highly correlated. 

High multicollinearity inflates standard errors, making it difficult to determine the 

individual effect of each predictor. 

• Fixed Independent Variables: The independent variables should be measured without 

error. Measurement errors can lead to biased estimates. 

• No Influential Outliers: Outliers or leverage points can disproportionately affect the 

regression model. They should be identified and addressed. 

• Sufficient Sample Size: A sufficiently large sample size is required to achieve stable 

and reliable estimates. A common guideline is to have at least 10-20 observations per 

predictor variable. (Wooldridge, 2020) 

 

A review of the study data indicates that the assumptions for multiple regression were 

met. Multiple regression explains the variation in a dependent variable and estimates the strength 

and direction of the relationships between the dependent and independent variables (Wooldridge, 

2020). A p-value < 0.05 indicates a significant relationship. This multiple regression test is an 

important test for addressing the research question because it indicates the impact of each 

independent variable on organizational commitment. Table 2 shows the multiple regression 

results. 

 

Table 2 

Multiple Regression 

Coefficients Estimate Std. Error T value Pr(>|t|) 

Intercept 

Idealized Influence 

Individual Consideration 

Inspirational Motivation 

Intellectual Stimulation 

40.7685 

0.8231 

0.3232 

2.298 

-0.7321 

3.898 

0.627 

0.532 

0.566 

0.567 

10.457 

1.312 

0.608 

4.060 

-1.291 

<2e-16*** 

0.192 

0.544 

0.0001*** 

0.199 

 Note: The relationship between the independent variable of inspirational motivation and the 

dependent variable of organizational commitment is highly significant. 

 

Results 
 

Results from the multiple linear regression analysis indicate that, among the four 

dimensions of transformational leadership, idealized influence, individual consideration, 

inspirational motivation, and intellectual stimulation, the latter significantly impacts 

organizational commitment among the respondents. Inspirational motivation refers to a leader's 

ability to inspire and motivate followers by creating a compelling vision of the future and 

making followers excited about the goals they are working toward. The results of this study 



November 2025 | Volume 4. Number 3 

10  

imply that inspirational motivation may be the most important aspect a leader should employ to 

encourage greater organizational commitment among employees in US SMEs.  
 

Summary, Conclusions, and Recommendations 
 

Leadership is a dynamic and multifaceted process that involves influencing, guiding, and 

motivating individuals to achieve organizational or group goals. Effective leadership is crucial as 

it shapes the vision, direction, and success of the organization or team. Leadership is not a one-

size-fits-all process but a complex interplay of styles, strategies, and contexts. Effective leaders 

understand the importance of adaptability, ethical practices, and continuous learning to lead their 

teams and organizations toward success (Kotter, 2012). 

Transformational leadership inspires and motivates followers to achieve their highest 

potential and foster significant organizational change. It emphasizes vision, intellectual 

stimulation, and individualized consideration (Bass & Riggio, 2006). Studies such as those by 

Ratina et al. (2021) and Islam et al. (2021) highlight its effectiveness in driving innovation and 

commitment.  

The purpose of this quantitative correlational study was to explore the impact of each of 

the four transformational leadership dimensions on employee organizational commitment in US 

SMEs, thereby providing valuable insights for organizational leaders seeking to create a 

dedicated and engaged workforce and reduce turnover. The results indicated that the 

transformational leadership dimension of inspirational motivation significantly positively 

impacted organizational commitment among the respondents. 

Fostering organizational commitment in SMEs requires intentional efforts, such as 

offering professional development opportunities, recognizing employee contributions, 

maintaining transparent communication, and cultivating a sense of belonging. These practices 

help SMEs grow by creating a motivated and dedicated workforce. Leaders have a significant 

influence on organizational commitment. Strong leadership fosters commitment by building trust 

and aligning with organizational goals. Silitonga et al. (2020) showed that transformational 

leadership positively influences organizational commitment through trust-building mechanisms. 

This research provides results consistent with these findings and greater detail on each 

transformational leadership dimension. 

The psychological insights into why employees respond positively to inspirational 

motivation stem from several well-established psychological theories and principles. These 

insights explain how inspirational motivation taps into intrinsic human needs, emotions, and 

cognitive processes. For example, self-determination theory (Deci & Ryan, 1985) postulates that 

people have three basic psychological needs: autonomy, competence, and relatedness. By 

aligning the vision with personal values, employees feel a sense of ownership over their work 

(autonomy). Leaders who encourage innovation and set challenging goals foster a sense of 

achievement (competence). Inspirational leaders articulate a vision that gives employees a sense 

of purpose (relatedness). As a result, employees feel intrinsically motivated, leading to higher 

engagement and commitment (Deci & Ryan, 1985).  

In social identity theory (Tajfel & Turner, 1979), people derive part of their self-concept 

from group membership. Inspirational leaders create a shared sense of identity by 

communicating a compelling vision that unites employees. When employees feel connected to a 

purpose beyond their individual roles, they develop a stronger sense of identification with the 



organization. The sense of belonging fosters loyalty and commitment as employees align their 

personal identity with the organizational vision (Tajfel & Turner, 1979).  

Cognitive dissonance theory (Festinger, L., 1957) states that people strive for consistency 

between their beliefs, values, and actions. When leaders align the organization’s goals with 

employees’ personal values, employees are motivated to reduce cognitive dissonance by 

committing to the vision. The alignment of goals and values fosters a sense of purpose, reducing 

internal conflict and enhancing commitment (Festinger, L., 1957).  

In expectancy theory, motivation is influenced by the belief that effort will lead to 

performance and desirable outcomes. Inspirational leaders clearly articulate how employees' 

efforts contribute to organizational success and individual rewards. Employees are motivated 

when they see their efforts meaningfully contributing to organizational growth. An increased 

belief in the ability to make a difference boosts engagement and commitment (Vroom, 1964). 

In conclusion, many theories provide insight into the impact of inspirational motivation 

and why it significantly impacts organizational commitment. Employees respond positively to 

inspirational motivation because it satisfies fundamental psychological needs for meaning, 

identity, and connection. It also activates positive emotions, reduces uncertainty, and aligns 

personal and organizational goals, creating an environment where employees feel valued, 

motivated, and committed. 

 

Implications for Professional Practice 

 

Inspirational motivation is important because it not only drives action towards goals but 

also fuels a more profound sense of purpose, creativity, and personal growth by igniting passion 

and excitement, making individuals more likely to persevere through challenges and achieve 

their full potential, especially when linked to a meaningful vision or cause (Shafi et al., 2020). 

Inspiration can spark new ideas and approaches to problem-solving, leading to more creative 

solutions. When people feel inspired, they are more likely to be fully invested in their work or 

personal goals and to experience a more positive mood and greater overall happiness (Kaur 

Bagga et al., 2022). Through inspirational motivation, leaders build their followers' trust and 

confidence, enabling them to fully contribute to the leader's vision and the organization's 

mission.  

Employees develop a strong emotional connection to their organization when they 

experience a combination of factors that foster trust, alignment, engagement, and personal 

fulfillment (Crossley et al., 2024). Inspirational leaders contribute to this personal fulfillment by 

motivating teams and individuals to reach higher performance through a compelling vision 

(Ratina et al., 2021). These connections are deeply rooted in the employees’ perception of how 

well the organization meets their needs, aligns with their values, and supports their growth. 

Leaders who demonstrate empathy, authenticity, and vision build trust and inspire loyalty 

(Silitonga et al., 2020). Fostering a strong emotional connection requires organizations to create 

a supportive, fair, and growth-oriented environment that aligns with employees' values and 

aspirations (Saks, 2006). Leaders play a crucial role in cultivating these connections by 

demonstrating trust, empathy, and a shared vision. 

In summary, inspirational motivation appeals to employees because it aligns with their 

intrinsic needs for purpose, growth, and connection. Leaders embodying this leadership style 

create an environment where employees feel inspired to perform at their best while maintaining a 

strong emotional connection to their work and the organization (Bass & Avolio, 1993). Leaders 



November 2025 | Volume 4. Number 3 

12  

should be aware of these implications and focus on inspirational motivation to be more effective 

leaders. 

  

Strategies for Applying Inspirational Motivation 

 

Applying inspirational motivation in an SME can have significant practical implications 

for leaders and organizations. Inspirational motivation emphasizes articulating a compelling 

vision, instilling confidence, and inspiring employees to exceed expectations. It enhances 

employee performance by aligning personal goals with organizational objectives. It also 

encourages optimism and a sense of purpose, boosting employee morale and productivity (Bass 

& Avolio, 1993). Leaders consistently communicating how employees’ roles contribute to the 

company’s mission can result in higher work engagement. SMEs should design leadership 

training programs emphasizing inspirational motivation to attract and retain talent. Here are key 

strategies for implementing inspirational motivation in the workplace: 

 

Develop and Communicate a Clear Vision 

• Develop a vision that aligns with the organization's goals and resonates emotionally with 

employees. Communicate this vision consistently through speeches, emails, and one-on-one 

conversations.  

• Demonstrate commitment to the vision through actions, not just words, and be a role model 

for the desired behaviors and attitudes to inspire employees (Kotter, 1996). 
Lead by Example  

• Show passion, dedication, and confidence in achieving the organization’s vision. 

• Display ethical behavior and act with integrity to build trust and set a positive example for 

employees.  

Foster a Positive and Supportive Culture 

• Encourage teamwork, promote collaboration, and recognize the contributions of each team 

member toward the shared vision. 

• Support innovation by providing a safe space for employees to share ideas, take calculated 

risks, and learn from failures. 

Use Motivational Communication 

• Inspire through language by using uplifting and encouraging messages in meetings, emails, 

and informal conversations. 

• Focus on the "Why" by highlighting the purpose and impact of employees' work to connect 

them emotionally to the vision (Paais & Pattiruhu, 2020).  

Empower Employees 

• Set meaningful goals by aligning individual roles and responsibilities with the organization's 

vision and strategic objectives. 

• Delegate authority and encourage autonomy by entrusting employees with decision-making 

responsibilities relevant to their expertise. 

Recognize and Reward Achievements 

• Celebrate success by publicly recognizing individual and team contributions to achieving the 

vision. 

• Encourage peer recognition by creating a culture where employees celebrate each other's 

successes (Durmishi & Popovski, 2020).  

Stay Adaptable and Resilient 



• Monitor progress by regularly assessing the alignment of goals, employee morale, and 

progress toward the organization’s vision. 

• Be open to feedback, actively listen to employee suggestions, and adapt strategies to 

maintain alignment with the organization’s vision. 

 

Concluding Remarks 

 

The purpose of this quantitative, correlational study was to determine how the four 

dimensions of transformational leadership impact organizational commitment in SMEs in the 

US. SMEs experience more employee turnover than large corporations (US Bureau of Labor 

Statistics, 2020). This research focused on SMEs because organizations are increasingly 

recognizing the significance of employee engagement and retention for sustaining long-term 

success. Low employee commitment is associated with lower job satisfaction and higher 

turnover rates (Grabowski et al., 2019). An overall positive organizational commitment among 

employees can reduce voluntary employee turnover. Understanding the factors influencing 

employee commitment, such as leadership behaviors, is crucial for addressing these concerns. 

Organizational commitment is fundamental to addressing employee turnover and 

promoting job satisfaction and performance. The findings of this study suggest that inspirational 

motivation has a significant positive relationship with organizational commitment, implying that 

organizational commitment can be improved by encouraging leaders to adopt this 

transformational leadership dimension. 

Inspirational motivation is a powerful tool for leaders to foster team engagement, 

innovation, and commitment. By aligning personal and organizational goals, crafting a 

compelling vision, and fostering a positive, collaborative work environment, SMEs can achieve 

long-term success while ensuring employee satisfaction and loyalty. This study's results provide 

compelling evidence that can help SMEs improve organizational commitment by applying the 

transformational leadership dimension of inspirational motivation more effectively.  

 

References 

 

Abid, G., Contreras, F., Ahmed, S., & Qazi, T. (2019). Contextual factors and organizational 

commitment: Examining the mediating role of thriving at work. Sustainability, 11(17), 

4686. https://doi.org/10.3390/su11174686 

Afsar, B., & Umrani, W. (2020). Transformational leadership and innovative work behavior: The 

role of motivation to learn, task complexity and innovation climate. European Journal of 

Innovation Management, 23(3), 402-428. https://doi.org/10.1108/EJIM-12-2018-0257 

Al-Ahmadi, A., & Kasztelnik, K. (2021). Investigating the association between transformational 

leadership behavior and job satisfaction among small businesses in the United States. 

Business Ethics and Leadership, 5(3), 6-21. https://doi.org/10.21272/bel 

Antonakis, J. (2001). The validity of the transformational, transactional, and laissez-faire 

leadership model as measured by the Multifactor Leadership Questionnaire (MLQ 5X). 

(Doctoral dissertation, Walden University). 
Ausat, A., Suherlan, S., Peirisal, T., & Hirawan, Z. (2022). The effect of transformational 

leadership on organizational commitment and work performance. Journal of Leadership in 

Organizations, 4(4), 61–82. https://doi.org/10.22146/jlo.71846 

https://doi.org/10.3390/su11174686
https://www.emerald.com/insight/search?q=Bilal%20Afsar
https://www.emerald.com/insight/search?q=Waheed%20Ali%20Umrani
https://www.emerald.com/insight/publication/issn/1460-1060
https://www.emerald.com/insight/publication/issn/1460-1060
https://doi.org/10.1108/EJIM-12-2018-0257
https://doi.org/10.21272/bel.5
https://doi.org/10.22146/jlo.71846


November 2025 | Volume 4. Number 3 

14  

 

Avolio, B., Bass, B., & Jung, D. (1999). Re-examining the components of transformational and 

transactional leadership using the Multifactor Leadership Questionnaire. Journal of 

Occupational and Organizational Psychology, 72(4), 441. 

https://doi.org/10.1348/096317999166789 

Bass, B., & Avolio, B. (2000). MLQ Multifactor Leadership Questionnaire. Redwood City: Mind 

Garden. 

Bass, B., & Avolio, B. (1993). Transformational leadership and organizational culture. Public 

Administration Quarterly, 17, 112-121. 

Bass, B. (1985). Performance beyond expectations. Journal of Personal Selling and Sales 

Management, 17(3), 19-28. 
Bass, B., & Riggio, R. (2006). Transformational leadership. (2nd ed.). Lawrence Erlbaum 

Associates. 
Benson, P. (2018). What type of leader are you? Pennsylvania CPA Journal, 13-14. 

Bhargavi, S., & Yaseen, A. (2016). Leadership styles and organizational performance. Strategic 

Management Quarterly, 4(1), 87–117. http://dx.doi.org/10.15640/smq.v4n1a5 

Bingham, J., Mitchell, B., Bishop, D., & Allen, N. (2013). Working for a higher purpose: A 

theoretical framework for commitment to organization-sponsored causes. Human 

Resource Management Review, 23(2), 174-189. 
Braathu, N., Laukvik, E., Egeland, K., & Skar, A. (2022). Validation of the Norwegian versions 

of the Implementation Leadership Scale (ILS) and Multifactor Leadership Questionnaire 

(MLQ) in a mental health care setting. BMC Psychology, 10(1), 25. 
Burns, J. (1978). Leadership. NY: Harper &Row. 

Carmines, E., & Zeller, R. (2022). Reliability and validity assessment. SAGE Publications. 

Cohen, A. (2007). Commitment before and after: An evaluation and reconceptualization of 

organizational commitment. Human Resource Management Review, 17(3), 336-354. 
Creswell, J., & Creswell, J. D. (2017). Research design: qualitative, quantitative, and mixed 

methods approach. SAGE Publications.  

Cronbach, L. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16(3), 

297–334. 

Crossley, C., Taylor, S., Liden, R., Wo, D., & Piccolo, R. (2024). Right from the start: The 

association between ethical leadership, trust primacy, and customer loyalty. Journal of 

Business Ethics, 193(2), 409-426. 

Dalton, L. (2023). Relationship Between Transformational Leadership on Organizational 

Commitment When Accounting for Organizational Trust: A Quantitative Correlational 

Study. [Doctoral thesis, Northcentral University]. ProQuest Dissertations & Theses 

Global: The Humanities and Social Sciences Collection. (2836166041). 

https://libraryresources.columbiasouthern.edu/login?url=https://www-proquest-

com.libraryresources.columbiasouthern.edu/dissertations-theses/relationship-between-

transformational-leadership/docview/2836166041/se-2 

Deci, E., & Ryan, R. (1985). Intrinsic Motivation and Self-Determination in Human Behavior. 

Springer Science & Business Media. 

Dunham, R., Grube, J., & Castaneda, M. (1994). Organizational commitment: The utility of an 

integrative definition. Journal of Applied psychology, 79(3), 370. 

Durbin, J., & Watson, G. (1950). Testing for serial correlation in least squares regression. 

Biometrika, 37(3-4), 409–428. 

https://doi.org/10.1348/096317999166789
http://dx.doi.org/10.15640/smq.v4n1a5
https://libraryresources.columbiasouthern.edu/login?url=https://www-proquest-com.libraryresources.columbiasouthern.edu/dissertations-theses/relationship-between-transformational-leadership/docview/2836166041/se-2
https://libraryresources.columbiasouthern.edu/login?url=https://www-proquest-com.libraryresources.columbiasouthern.edu/dissertations-theses/relationship-between-transformational-leadership/docview/2836166041/se-2
https://libraryresources.columbiasouthern.edu/login?url=https://www-proquest-com.libraryresources.columbiasouthern.edu/dissertations-theses/relationship-between-transformational-leadership/docview/2836166041/se-2


Durmishi, A., & Popovski, V. (2020). The Relationship between Effective Leadership and the 

Performance of Employees. Economic Development / Ekonomiski Razvoj, 22(1–2), 119–

132 

Fant, L. M. (2019). Transformational leadership and organizational performance as predictors 

of employee engagement. Northcentral University.  

Festinger, L. (1957). A Theory of Cognitive Dissonance. Stanford University Press. 

Gelencsér, M., Sandor Kőmüves, Z., Hollósy-Vadász, G., & Szabó-Szentgróti (2024). Modeling 

employee retention in small and medium-sized enterprises and large enterprises in a 

dynamically changing business environment. International Journal of Organizational 

Analysis, https://doi.org/10.1108/IJOA-09-2023-3961 

Grabowski, D., Chudzicka-Czupała, A., Chrupała-Pniak, M., Rachwaniec-Szczecińska, Ż., 

Stasiła-Sieradzka, M., & Wojciechowska, W. (2019). Work ethic, organizational 

commitment, and burnout. Medycyna Pracy, 70(3), 305–316. 

https://doi.org/10.13075/mp.5893.00800 

Gumus, S., Bellinas, M., & Gumus, E. (2018). A systematic review of studies on leadership 

models in educational research from 1980 to 2014. Educational Management 

Administration and Research, 46(1), 25-48. 

Gutu, I., Agheorghiesei, D., & Ionel, C. (2022). The online adapted transformational leadership 

and workforce innovation within the software development industry. Sustainability, 

14(12), 7408. 

Hadi, T., & Tola, B. (2019). The effect of transformational leadership and work motivation on 

innovative behavior. International Journal of Human Capital Management, 3(2), 100-

108. 

Haque, A., Fernando, M., & Caputi, P. (2019). The relationship between responsible leadership 

and organizational commitment and the mediating effect of employee turnover intentions: 

An empirical study with Australian employees. Journal of Business Ethics, 156(3), 759–

774. https://doi.org/10.1007/s10551-017-3575-6 

Islam, M., Furuoka, F., & Idris, A. (2021). Mapping the relationship between transformational 

leadership, trust in leadership and employees championing behavior during 

organizational change. Asia Pacific Management Review, 26(2), 95-102. 

https://doi.org/10.1016/j.apmrv.2020.09.002 

Kanning, U., & Hill, A. (2018). Validation of organizational commitment questionnaire (OCQ) 

in six languages. Journal of Business and Media Psychology, 4(2), 11-20. 

https://journalbmp.de/2013/12/validation-of-the-organizational-commitment-

questionnaire-ocq-in-sixlanguages/?lang=en 

Kaur Bagga, S., Gera, S., & Haque, S. (2022). The mediating role of organizational culture: 

Transformational leadership and change management in virtual teams. Asia Pacific 

Management Review, 28(2), 120-131. https://doi.org/10.1016/j.apmrv.2022.07.003 

Keskes, I., Sallan, J. M., Simo, P., & Fernandez, V. (2018). Transformational leadership and 

organizational commitment: Mediating role of leader-member exchange. Journal of 

Management Development, 37(3), 271–284. https://doi.org/10.1108/JMD-04-2017-0132   

Kirkbride, P. (2006). Developing transformational leaders: The full range leadership model in 

action. Industrial and Commercial Training, 38(1), 23-32. 
Kotter, J. (1996). Leading Change. Harvard Business Review Press. 

Kotter, J. (2012). How the most innovative companies capitalize on today's rapid-fire strategic 

challenges-and still make their numbers. Harvard Business Review, 90(11), 43-58. 

https://www.emerald.com/insight/search?q=Martin%20Gelencs%C3%A9r
https://www.emerald.com/insight/search?q=Zsolt%20Sandor%20K%C5%91m%C3%BCves
https://www.emerald.com/insight/search?q=G%C3%A1bor%20Holl%C3%B3sy-Vad%C3%A1sz
https://www.emerald.com/insight/search?q=G%C3%A1bor%20Szab%C3%B3-Szentgr%C3%B3ti
https://www.emerald.com/insight/publication/issn/1934-8835
https://www.emerald.com/insight/publication/issn/1934-8835
https://doi.org/10.13075/mp.5893.00800
https://doi.org/10.1007/s10551-017-3575-6
https://doi.org/10.1016/j.apmrv.2020.09.002
https://doi.org/10.1016/j.apmrv.2022.07.003


November 2025 | Volume 4. Number 3 

16  

Laerd Statistics. (2018). Statistical tutorials and software guides. Retrieved from 

https://statistics.laerd.com 
Laksmana, G., & Riana, I. (2020). Intrinsic motivation mediates the influence of 

transformational leadership on the employee performance. American Journal of 

Humanities and Social Sciences Research, 5, 90–96. 

Manoppo, V. (2020). Transformational leadership as a factor that decreases turnover intention: a 

mediation of work stress and organizational citizenship behavior. The TQM journal, 

32(6), 1395-1412. https://doi.org/10.1108/TQM-05-2020-0097 

Marta, I., Supartha, I., Dewi, I., & Wibawa, I. (2021). Job enrichment, empowerment, and 

organizational commitment: The mediating role of work motivation and job 

satisfaction. The Journal of Asian Finance, Economics and Business, 8(1), 1031-1040. 

McGrath, R. (2015). Creating and verifying data sets with excel. Sage Publications, Ltd. 

https://doi.org/10.4135/9781483398587   

Meyer, J., & Allen, J. (1991). A three-component conceptualization of organizational 

commitment. Human Resource Management Review, 91(1), 61–89. 

https://doi.org/10.1016/1053-4822(91)90011-Z 

Mohammed, T. (2020). Strategies for reducing employee turnover in small- and medium-sized 

enterprises. (Doctoral dissertation, Walden University). 

Mowday, R., Steers, R., & Porter, L. (1979). The measurement of organizational commitment. 

Journal of Vocational Behavior, 14(2), 224-247. doi: 000I-8791/79/020224- 24$02 

Muenjohn, N., & Armstrong, A. (2008). Evaluating the structural validity of the multifactor 

leadership questionnaire (MLQ), Capturing the leadership factors of transformational-

transactional leadership. Contemporary Management Research, 4(1). 

Nguon, V. (2022). Effect of Transformational leadership on job satisfaction, innovative behavior, 

and work performance: A conceptual review. International Journal of Business and 

Management, 17(2), 75-89. 

Ölçer, F. (2015). An empirical study on the relationships among transformational leadership 

dimensions, job satisfaction and organizational commitment of bank employees. 

International Journal of Research in Commerce & Management, 6(3), 31–39. 

Özaralli, N. (2003). Effects of transformational leadership on empowerment and team 

effectiveness. Leadership & Organization Development Journal, 24(6), 335-344. 

Paais, M., & Pattiruhu, J. (2020). Effect of motivation, leadership, and organizational culture on 

satisfaction and employee performance. The Journal of Asian Finance, Economics and 

Business, 7(8), 577–588. 

Pederson, J. (2017). Multiple regression. The SAGE encyclopedia of communication research 

methods (pp. 1041-1045). SAGE Publications, Inc. 

Rahmatullah, A., Ramdansyah, A., Kambara, R., & Haryadi, D. (2022). Improving 

organizational performance with organizational culture and transformational leadership 

through intervening organizational commitment variables. Dinasti International Journal 

of Digital Business Management, 3(2), 180-194. 

Ratina, N., Indradewa, R., & Syah, T. (2021). The effect of transformational leadership on 

affective commitments with job satisfaction and organizational culture as an intervening 

variable. Journal of Multidisciplinary Academic, 4(6), 447-452. 

file:///C:/Users/dell/Downloads/523-1576-1-PB.pdf.  

Robbins, S., & Judge, T. (2017). Essentials of organizational behavior. 16th edition, Pearson 

Education  

https://doi.org/10.1108/TQM-05-2020-0097
https://doi.org/10.4135/9781483398587
https://doi.org/10.1016/1053-4822(91)90011-Z
file:///C:/Users/dell/Downloads/523-1576-1-PB.pdf


Rowold, J. (2005). Multifactor leadership questionnaire. Psychometric properties of the German 

translation by Jens Rowold. Redwood City: Mind Garden. 

Saks, A. M. (2006). Antecedents and consequences of employee engagement. Journal of 

Managerial Psychology, 21(7), 600-619. 

Schumacker, R. (2015). Using R with multivariate statistics. Sage Publications. 

Shafi, M., Lei, Z., Song, X., & Sarker, M. (2020). The effects of transformational leadership on 

employee creativity: Moderating role of intrinsic motivation. Asia Pacific Management 

Review, 25(3), 166–176 

Silitonga, N., Novitasari, D., Sutardi, D., Sopa, A., Asbari, M., Yulia, Y., & Supono, J. (2020). 

The relationship of transformational leadership, organizational justice, and organizational 

commitment: A mediation effect of job satisfaction. Journal of Critical Reviews, 7(19), 

89-108. 

SurveyMonkey. (2022). https://www.surveymonkey.com 

Tajfel, H., & Turner, J. (1979). An Integrative Theory of Intergroup Conflict. The Social 

Psychology of Intergroup Relations (pp. 33-47). Brooks/Cole. 

Tominc, P., Krajnc, M., Vivod, K., Lynn, M. L., & Freser, B. (2018). Students’ behavioral 

intentions regarding the future use of quantitative research methods. Our Economy (Nase 

Gospodarstvo), 64(2), 25-33. https://doi.org/10.2478/ngoe2018-0009 

U.S. Bureau of Labor Statistics. (2020). Job openings and labor turnover-October 2020. 

https://www.bls.gov/news.release/archives/jolts_12092020.pdf 

Verma, A. (2020). A study of the relationship of job satisfaction and organizational commitment 

with organizational citizenship behavior amongst college teachers. Prestige International 

Journal of Management and Research, 13(1–2), 1-13. 

Vroom, V. (1964). Work and Motivation. Wiley. 

Wooldridge, J. M. (2020). Introductory econometrics: A modern approach (7th ed.). Cengage 

Learning. 

Yang, B., Watkins, K., & Marsick, V. (2004). The construct of the learning organization: 

Dimensions, measurement, and validation. Human Resource Development 

Quarterly, 15(1), 31-55. 

Yasin, R. (2021). Responsible leadership and employees’ turnover intention. Explore the 

mediating roles of ethical climate and corporate image. Journal of Knowledge 

Management, 25(7), 1760-1781 

Yousef, D. (2003). Validating the dimensionality of Porter et al’s measurement of organizational 

commitment in a non-Western culture setting. The International Journal of Human 

Resource Management, 14(6), 1067-1079. 
Yu, Q., Yen, D., Barnes, B., & Huang, Y. (2019). Enhancing firm performance through internal 

market orientation and employee organizational commitment. International Journal of 

Human Resource Management, 30(6), 964-987. 

https://doi.org/10.1080/09585192.2017.1380059 

https://www.surveymonkey.com/
https://doi.org/10.2478/ngoe2018-0009
https://www.bls.gov/news.release/archives/jolts_12092020.pdf
https://doi.org/10.1080/09585192.2017.1380059

