The Effect of Transformational Leadership on Job Performance and Employee Happiness: The Mediating Role of Organizational Commitment–Focus on China’s Financial Institutions

다국어 초록 (Multilingual Abstract)

Amid the escalating tensions between the United States and China, alongside growing geopolitical uncertainties, the global economy and financial sectors face increased risks of fragmentation. In response to these challenges, China has focused on enhancing the management quality and capabilities within its financial sector, emphasizing the gradual but steady opening up of its financial industry to global markets. However, there is still a significant gap in the current literature concerning the positive influence of transformational leadership on employee happiness within the financial sector. Addressing this gap, our study introduces and evaluates a pioneering research model aimed at exploring the mediating role of organizational commitment in the relationship between transformational leadership and key outcomes such as job performance and employee happiness. To conduct this comprehensive analysis, data were meticulously collected from 334 employees working across a diverse array of financial institutions in China，including a comparative analysis between banks and other financial institutions using AMOS 24. Utilizing SPSS 26.0 for correlation and regression analysis，our findings substantiate the proposed hypotheses. Key outcomes include: transformational leadership significantly boosts organizational commitment; enhances job performance; elevates employee happiness, notably within the banking sector compared to other financial areas; and organizational commitment serves as a crucial intermediary in the relationship between transformational leadership, job performance, and employee happiness. Furthermore, our research highlights the nuanced differences in the impact of transformational leadership across various types of financial institutions, underscoring the unique challenges and opportunities presented within the banking sector compared to other financial domains. This research underscores the urgent need for adaptive leadership strategies in the financial sector to navigate contemporary challenges, offering fresh insights into fostering a resilient and thriving organizational culture amidst global uncertainties.