Impacts of Cultural Values on Leadership Style Preferences and Employees’ Organisational Commitment within Budget Hotel Sector in Sarawak

Ellin, Ng (2023) Impacts of Cultural Values on Leadership Style Preferences and Employees’ Organisational Commitment within Budget Hotel Sector in Sarawak. Masters thesis, Universiti Malaysia Sarawak.

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Abstract

Workforce diversity has become a buzzword in this era of globalisation. It brings advantages to the organisations, such as an increase in employees’ organisational commitment. However, employees from different ethnic backgrounds may have different perceptions and implications on what constitutes effective leadership, which may influence their organisational commitment. This research aims to assess the cultural values of the various ethnic groups in Sarawak, and find out whether there are significant differences in cultural values among them. In addition, the research investigates the influence of preferred leadership styles (transformational, transactional, and laissez-faire leadership styles) on organisational commitment and the moderating effect of cultural values. On the basis of judgmental sampling, 119 respondents from the budget hotel industry were chosen. Data were analysed using descriptive statistics and the PLS-SEM two-step approach and two-stage approach for moderation analysis. The first aim reveals somewhat significant differences in cultural values among the ethnic groups, and most employees prefer their leaders to exhibit transformational leadership styles. A positive relationship was found between transformational leadership and organisational commitment. However, there was no moderating effect of cultural values on the relationship. This research contributes to the applicability of the transformational theory of leadership that leaders using transformational leadership styles are able to transform the values, goals, and priorities of followers to perform their tasks beyond expectations. Furthermore, managers could understand that different ethnic groups have somewhat significant differences in cultural values and that this could help tackle effective leadership and their organisational commitment.

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