Job demands-resources model, transformational leadership and organizational performance: a multilevel study

Purpose The purpose of this paper is to integrate an extended by personal resource job demands-resources (JD-R) model in the relationship between transformational leadership and organizational performance. It is argued that the responsive, supportive and developmental leader's style will reduce employees' levels of burnout and increase their levels of work engagement and ultimately will increase organizational performance expressed by productivity, growth and creativity. Design/methodology/approach The hypotheses were tested among a national sample of 1,011 employees in 107 Greek public and private organizations operating within an environment of economic and financial crises. The operational model was tested using a multilevel structural equation modelling. Findings It appeared that job demands and work burnout and job resources and work engagement, serially and fully mediated the relationship between transformational leadership and organizational performance. Further, it is found that personal resources negatively and fully mediate the relationship between job resources and work burnout and positively and partially mediate the relationship between job resources and work engagement. Research limitations/implications Data were collected using a cross-sectional design, not allowing dynamic causal inferences. Practical implications Considering that the transformational leadership style reduces employees' levels of burnout and increases their levels of work engagement and accordingly improves organizational performance, organizations are well advised to encourage this leadership style. Social implications Transformational leadership by balancing job demands and job resources could have a positive impact on employee well-being. Originality/value The study, using multilevel testing, demonstrates that the extended JD-R model can be integrated into the transformational leadership- organizational performance relationship.