Does Transformational Leadership Better Predict Work-Related Outcomes Than Transactional Leadership in the NPO Context? Evidence from Italy

With limited studies on the relative effectiveness of different leadership styles in NPOs, the purpose of this paper is to propose a model in which work engagement mediates the effects of transformational leadership and transactional leadership simultaneously on affective commitment and organizational citizenship behavior among NPOs employees. Furthermore, the paper aims to investigate whether transformational leadership better explains work engagement and the aforesaid outcomes than transactional leadership. Relying on large scale data collected from employees working in two types of NPOs categories (human service organizations and charities) in the north of Italy, structural equation modeling was utilized to verify the aforesaid linkages. Among others, the indirect effect of transformational leadership on affective commitment and organizational citizenship behavior, through work engagement, was stronger than the indirect effect of transactional leadership. Implications, limitations, and future research are provided.