The role of organisational culture in turnover intention in the Malaysian service industry

Abstract

This study examines the mediating role of organisational culture in the relationship between leadership styles and employee turnover intention in Malaysia's service industry. With high turnover rates posing a critical challenge, the study investigates the impact of transformational, and authentic leadership on organisational culture and its influence on retaining employees. Key findings reveal that leadership styles, while not directly reducing turnover intention, significantly shape organisational culture. Both leadership styles indirectly reduce turnover intention through their positive impact on organisational culture. The study underscores the pivotal role of culture as a mediator, providing actionable insights for managers to align leadership strategies with cultural development. By employing validated measurement tools and structural equation modelling, the study offers robust evidence for enhancing retention strategies. The findings contribute to existing literature by highlighting the indirect effect of leadership on turnover through culture, filling a research gap in the Malaysian context. This study advocates for leadership development programmes tailored to Malaysia's unique workforce dynamics, focusing on fostering inclusive, innovative, and trust-based organisational cultures. These findings serve as a guide for policymakers and practitioners in addressing turnover challenges, and ensuring sustainable growth in Malaysia's service sector.