Is Transformational Leadership Having any Impact on Employee Motivation in Vietnam?

Abstract

The study aimed to identify the impact of transformational leadership on employee motivation. The study considered the case of the financial sector of Vietnam. The study adopted the quantitative research design while the instrument used to gather the responses was a survey questionnaire. The data was gathered from 366 respondents working in the financial sector of Vietnam. The analysis was carried out on Smart PLS while the technique to achieve the aim was Structural Equation Modelling (PLS-SEM). The data was analyzed using the path assessment and measurement model. The results revealed that the overall effect of transformational leadership on employee motivation was significant. However, there was partial mediation of commitment and engagement, confidence and employee wellbeing among transformational leadership on employee motivation.The study is limited to the financial sector only that is operating within Vietnam. Nevertheless, the research has various implications for the financial sector of Vietnam, its managers and workers.