Transformational Leadership in Enhancing Sustainable Job Embeddedness: A Moderated Mediation Model of Employee Engagement and Core Job Characteristics in Fin-tech Organizations, Chennai

Abstract

Purpose – This study examines the impact of Transformational Leadership (TL) on Sustainable Job Embeddedness (JE) in FinTech organizations, with Employee Engagement (EE) as a mediator and Core Job Characteristics (CJC) as a moderator. The research aims to explore a moderated mediation model to understand how leadership influences sustainable job embeddedness.

Design/methodology/approach – A cross-sectional survey was conducted among 385 employees in FinTech organizations in Chennai. Standardized scales measured TL, EE, CJC, and JE. Structural Equation Modeling (SEM) and Hayes’ PROCESS macro were applied to test mediation and moderation effects.

Findings – The results of this study are not only significant but also enlightening, indicating that Transformational Leadership significantly and positively affects Sustainable Job Embeddedness. Employee Engagement partially mediates this relationship, and Core Job Characteristics are shown to moderate the effect of Employee Engagement on Sustainable Job Embeddedness, strengthening the mediation effect under high CJC conditions. These findings support the moderated mediation model, providing valuable insights into the importance of leadership and job design in employee retention.

Practical implications – Organizations in the FinTech sector can leverage this study’s findings to enhance their employee retention strategies. Transformational leadership training can significantly improve employee engagement and Sustainable Job Embeddedness. Additionally, designing strong core job characteristics, such as autonomy and task significance, can further reinforce employees’ connection to their organization, thereby reducing turnover risks.

Originality/value – This study significantly contributes to the leadership and retention literature, integrating transformational leadership, employee engagement, and Sustainable Job Embeddedness in a moderated mediation framework. Its findings provide unique and actionable insights for HR and leadership development in the FinTech industry, making it a valuable addition to the existing body of knowledge.