The Drivers of Organizational Commitment in Malaysian SME’s: Do Intellectual Stimulation, Inspirational Motivation and Individualize Consideration Play a Role?

Abstract

Leadership are an important issue to be addressed for an organisation to succeed. Many studies show that good leadership can increase employees’ commitment to the organization. This study examines the linkages between intellectual stimulation, inspirational motivation and individualised consideration of organizational commitment. Using an established questionnaire captured from the leadership literature, data was collected from 452 employees of SME firms in Malaysia. Data were analyzed using multiple regression analysis. The results indicate that both intellectual stimulation and individualize consideration were significant and positively related to organizational commitment (β = 0.28, p < 0.01) and (β = 0.35, p < 0.01) respectively. In sum, the research model was able to explain a total of 48% variance.