THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP ON EMPLOYEE PERFORMANCE THROUGH EMPLOYEE COMMITMENT: EVIDENCE FROM INDIA’S IT INDUSTRY

Abstract

Indian IT market is a dynamic and competitive market in which the performance of the employees is a major determinant of the organizational performance. This paper is a study to determine how transformational leadership affects employee performance through the mediating variable of employee commitment. Based on the gathered information of 100 IT professionals using a structured survey tool, the key performance dimensions that comprise technological competencies, teamwork, intellectual stimulation, client expectations, and responsiveness to new structures were evaluated. The Friedman test results revealed a statistically significant difference in the perceived importance of these performance factors (χ² = 90.835, p < 0.05), with intellectual stimulation and team collaboration emerging as the most influential drivers of performance. Further analysis using the Mann–Whitney U test showed no significant differences in perceptions across gender regarding innovation and problem-solving, motivation and engagement, and knowledge sharing and collaboration (p > 0.05). These findings suggest that transformational leadership enhances employee performance primarily by creating an intellectually stimulating and collaborative work environment rather than enforcing technical compliance or client-driven outcomes. The study contributes to leadership and human resource management literature by highlighting employee commitment and cognitive engagement as central components in shaping high-performance behavior in India's IT sector.