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Effect of transformational The mediating

role of CSR
leadership on job performance: between TL
and JP
testing the mediating role of
corporate social responsibility
Jnaneswar K and Gayathri Ranjit Received 8 May 2020
Revised 6 June 2020
CET School of Management, College of Engineering Trivandrum, Accepted 26 June 2020
Thiruvananthapuram, India

Abstract
Purpose – Encouraging employees to bolster their performance in today’s turbulent business environment is
an important priority for all types of organizations. Even though few studies reported the impact of
transformational leadership (TL) on job performance (JP), the role of mediators namely corporate social
responsibility (CSR) in this relationship is not given due attention. The purpose of this paper is to assess the
mediating role of CSR in the relationship between TL and JP in the Indian context.
Design/methodology/approach – Data from 306 full time employees working in the manufacturing
industry in India were collected through an online survey. The manufacturing organizations were selected on
the basis of their active participation in CSR activities and robustness of HR practices. Three structured
questionnaires were used for eliciting data from the employees, and AMOS software was used for testing the
validity of the hypothesized model. PROCESS macro was used for testing the mediating role of CSR.
Findings – TL impacted both JP and CSR. Additionally, CSR showed a positive relationship with JP of
employees. The pivotal finding of the study is the partial mediation of CSR in the TL–JP relationship.
Originality/value – Based on neo-charismatic paradigm theory, TL theory, stakeholder theory and social
identity theory, this paper enriches the literature by demonstrating the mediation mechanism driving TL and
JP relationship.
Keywords Transformational leadership, Corporate social responsibility, Job performance, Organizational
performance, Competitive advantage
Paper type Research paper

1. Introduction
Transformational leadership (TL) garnered increased attention from both academia and
industry owing to its capability to provide sustained competitive advantage in the days of
volatility, ambiguity, uncertainty and complexity (Yahaya and Ebrahim, 2016). Bushra et al.
(2011, p. 262) defined TL as “a style of leadership where a leader works with teams to identify
needed change, creating a vision to guide the change through inspiration, and executing the
change in tandem with committed members of a group”. The objective of TL is to bolster
followers’ connection with overarching goal and motivates them to engage in job
performance (JP) that surpasses organization’s expectations. The overall validity of TL
and its relationship with a number of individual and organizational outcomes such as
performance, trust, satisfaction and commitment was established through different empirical
studies and meta-analyses (Agrawal, 2020; Banks et al., 2016; Judge and Piccolo, 2004).
One of the major challenges faced by organizations is how to identify the pivotal factors
that motivate employees to maximize their performance (Ali et al., 2019). Babin and Boles
(1996) and Ellinger et al. (2008) conceptualized JP as behaviors that are relevant to the
objectives of the organization and can be controlled by employees. Previous studies reported
the influence of leadership styles on employee behavior (Alamir et al., 2019), but majority of Journal of Advances in
Management Research
this research were conducted in the Western context (Robbins and Judge, 2009). With respect © Emerald Publishing Limited
0972-7981
to TL and JP too, past research established a significant relationship but mostly in Western DOI 10.1108/JAMR-05-2020-0068
JAMR context (Mangkunegara and Huddin, 2016; Naeem and Khanzada, 2018). We also found that
the empirical evidence about this relationship is still scant in Indian context. Nuzzo (2014)
suggested that for generalization of empirical results, replication in a different context is a
prerequisite. After taking into account these two conditions, we believe that it is pertinent to
test the relationship between TL and JP in the Indian context. Thus to enrich knowledge and
to bridge the research gap, present study examines direct relationship between TL and
employees’ JP in the Indian manufacturing industry.
Significant attention is now being given to the concept of corporate social responsibility
(CSR) by industry owing to the increased demand for business models that operate and
maintain environmental and social ecosystem. CSR refers to activities by an organization that
goes beyond its economic interests and which positively impacts all the stakeholders (Turker,
2008). There is a growing interest in the area of CSR among organizations as they started
viewing CSR as pivotal to the success of their business (Carvalho et al., 2010). It is now treated
as an integral strategy to attain sustained competitive advantage. The underpinning theory
behind CSR concept is the stakeholder theory (Freeman, 1984). Previous studies reported the
impact of CSR on various stakeholders, for instance stockholders (Orlitzky et al., 2003);
customers (Hur et al., 2018) and employees (De Roeck and Delobbe, 2012; Ghosh, 2018). The
literature presents evidence about the impact of CSR and various employee related variables
such as turnover (Ng et al., 2018); organizational commitment (Bouraoui et al., 2019); job
satisfaction (Zhou et al., 2017) and organizational citizenship behaviors (Ong et al., 2018). In
spite of the positive impact of CSR on various employee outcomes, its relationship with JP has
not been widely studied (Islam et al., 2016; Newmana et al., 2014). Studies linking these two
variables are still sparse in the Indian context. In fact majority of the organizations are
oblivious of the role of CSR in engaging employees or improving their performance. Through
the present study, we attempt to bridge this research gap by examining the direct effect of
CSR on JP.
Even though the literature highlights both theoretical and empirical studies linking TL
and JP, there is immense scope for a detailed exploration to fully understand and predict this
relationship. The underlying mechanism behind the relationship between TL and JP is
inadequately researched and there is a need to conduct more research studies to uncover this
(Wang et al., 2013). It is vital to explore the pertinent factors influencing the link between TL
and JP (Han et al., 2020). Also there is a burgeoning interest in examining the mediation effects
(Singh and Sarkar, 2019) since research without studying the underlying processes lacks
rigor (Matheieu et al., 2008). Thus to gain a thorough understanding of the TL–JP
relationship, it is crucial for the research community to test potential mediators like CSR. This
research therefore considers CSR as a mediating mechanism through which TL might
influence employees’ JP. Our study is one of the pioneer attempts to empirically examine the
mediating role of CSR in the impact of TL on employees’ JP. To the best of our knowledge,
there is paucity of empirical research that includes TL, CSR and JP within the model of
stakeholder relationship. Present research will enrich our knowledge of social exchange
relationships between organizations and individuals by considering CSR as a mediating
variable.
The pivotal contributions to this study are as follows: first by assessing the mediating role
of CSR in the impact of TL on JP, our understanding about how CSR interact and predict
employees’ JP is enriched. Thus through this research, we tries to fill the gap in the individual
level research on CSR as only limited studies are available. Jamali and Karam (2018) reported
that only 9% of the existing studies on CSR focus on individual level of analysis. Second, it
provides empirical evidence to the direct relationships between TL and JP and corporate
responsibility and JP in the Indian context as only scant empirical data are available. Thus,
this study provides empirical evidence in the Indian context to aspiring researchers for
conducting related studies in diverse cultural contexts. Third and most important
contribution of this study is the conceptualization of a theoretical model that incorporates The mediating
notions of neo-charismatic theory and stakeholder theory. The outcome of this research offer role of CSR
significant support to the belief that neo-charismatic paradigm theory might complement
stakeholder theory in explaining employees’ JP.
between TL
The remaining part of this article is structured as follows: A literature review detailing the and JP
variables, their relationships and hypothesis development is described in the next section.
Afterward, methodology is detailed. Finally results are discussed, followed by implications,
limitations of the study and suggestions for future research.

2. Literature review and hypothesis development

2.1 Transformational leadership
During the fag end of 1970s, there was a paradigm shift from traditional leadership to positive
forms of leadership in the leadership literature (Avolio and Gardner, 2005). It was Burns
(1978) who introduced the term TL while describing the ideal situation between political
leaders and their followers. He characterized TL as an ongoing process where by both leaders
and followers serve collective interests by abandoning their self-interests. Later Bass (1985)
expanded this political concept of TL to organizational context. He defined the process of TL
as the “leader’s ability to achieve follower performance beyond ordinary limits”.
Transformational leaders can change their subordinates’ behavior and thus encouraging
them to surpass organizational expectations through inspirational motivation, individualized
consideration, idealized influence and intellectual stimulation (Longshore and Bass, 1987).
Inspirational motivation by the leaders may result in framing and articulating a shared vision
for the organization. This finally culminates in setting challenging expectations for the
followers. Feeling of trust and satisfaction with the leader is generated when leaders’ respect
the individuality of followers by exhibiting individualized consideration. With idealized
influence, leaders successfully function as a role model by showing a consistency between
their actions and the shared vision. Finally the existing assumptions are challenged through
intellectual stimulation resulting in contribution of innovative ideas and suggestions from the
employees. TL challenges the status quo and motivates employees’ to exhibit creativity and
innovative work behavior in organizations.
Of late TL has been extensively researched and increasingly applied to explain leader
effectiveness (Breevaart and Zacher, 2019). The popularity of TL is attributed to its ability to
develop effective leaders, generate employees’ commitment and create positive relationships
at all levels in the organization (Masa’deh et al., 2016). One of the benefits of TL compared to
other leadership styles is that it can be applied in diverse cultures and in different contexts
(Ivey and Kline, 2010). TL’s thrust on the process of people development is what differentiates
it from other leadership styles (Rao, 2014). Most of the leadership styles emphasize interaction
of leader with the subordinates at the individual level only, but in TL, this interaction happens
at multiple levels (Masood and Afsar, 2017). For instance apart from individual level
interaction through intellectual stimulation and individualized consideration, there are group
and organizational level interactions also through idealized influence and inspirational
motivation.
TL impacts employee empowerment (Owen et al., 2004); employee creativity (Limsila and
Ogunlana, 2008); employee transformation (Yulk, 2010) and organizational commitment
(Sadler, 2003). According to Bacha (2014), TL facilitate in changing values, expectations and
aspirations of employees. Transformational leaders motivate employees to follow the
organizational vision through inspirational motivation and intellectual stimulation (Afsar
and Umrani, 2019). They are also adept in creating a supportive workplace which encourages
employees’ motivation to improve their JP. The support received from managers or
supervisors reduces emotional exhaustion of subordinates and help them to become more
JAMR confident (Charoensukmongkol et al., 2016). TL stimulates followers to elevate to a higher
level of thinking.

2.2 Corporate social responsibility

There is a burgeoning interest in the concept of CSR in recent years. The wide popularity of
CSR is attributable to global warming, environmental degradation, corporate frauds and
global financial crisis (Tripathi and Bhandari, 2015). According to Aguinis and Glavas (2012),
CSR means organizational endeavors that consider stakeholders’ expectations in social,
environmental and economic contexts. The prime focus of CSR is sustainability and inclusion
(Schinzel, 2019). The gamut of activities that comes under CSR includes economic, charitable,
legal and ethical initiatives by the organization (Carroll, 1979). CSR activities of an
organization promote social good and it goes beyond the interests of shareholders and
exceeds those prescribed by law (Waldman et al., 2006). These activities result in an increase
in awareness among the customers that the products they are purchasing are produced in a
socially responsible manner. In addition to this organization seriously symbolize socially
responsible attributes in its products. The end result of these actions will be more satisfied
stakeholders which include not only customers but also employees, government, suppliers,
community groups and shareholders. Additionally the positive perception of stakeholders
influences potential stakeholders to associate with the business of the organization
(Shams, 2015).
Donaldson and Preston (1995), Hamann (2003), Hillman and Keim (2001) and McWilliams
and Siegel (2001) have emphasized the organization’s responsibility toward both external and
internal stakeholders. CSR consists of both internal and external activities depending on how
an organization responds to these stakeholders. Organizational initiatives targeted toward
improving the psychological and physical work environment are known as internal CSR
(Turker, 2008). The internal CSR activities include but not limited to work life balance
initiatives, career development opportunities, family friendly policies, training and diversity
management. External CSR include initiatives undertaken to protect environment,
philanthropic activities, community development and sustainability (Turker, 2008). The
pursuit of CSR activities facilitates improvement of corporate value in the long run (Hillmann
and Keim, 2001). Organization’s commitment toward CSR culminate in better financial
outcomes, additionally non-financial outcomes such as external stakeholder satisfaction,
perception of attractiveness by investors and enhanced organizational reputation are also
achieved (Graves and Waddock, 1994; Kim et al., 2015; Orlitzky et al., 2003; Peloza, 2009).
Commitment toward CSR shall be viewed as a strategic initiative by organizations as it
determines the stakeholder relationship to a great extent and is a valuable source of sustained
wealth creation in today’s volatile and turbulent business environment.

2.3 Job performance

Employees occupy a pivotal position in the organization and they are valuable assets
(Chakraborty and Biswas, 2019). They make things happen in the organization and elevate
organization to the next level through their improved JP. The dynamic nature of business
environment and hyper competition placed employees’ JP as one of the top priorities of almost
all organizations. JP “is behavioral, incidental, measurable and multifaceted, and is also a sum
of intermittent incidents which employees have done in a standard duration in the
organization” (Chu and Lai, 2011, p. 106). Katz (1964) identified JP as a complex construct
consisting of in-role JP and innovative work behavior. Employee’s in-role JP is regularly
reviewed by the organization as it is directly related to the job description whereas innovative
work behavior is the deliberate attempt to generate and implement new ideas within a work
role for the betterment of the organization (Scott and Bruce, 1994). In the same vein Motowildo
and Van (1994) and Atatsi et al. (2019) also reported about the multi-dimensionality of JP The mediating
which include contextual and task performance. Task performance indicates behaviors at role of CSR
work that are required as per the formal job description (Harrison et al., 2006). Voluntary work
behavior that exceeds stated job roles and foster psychological and social environment in the
between TL
organization is referred to as contextual performance (Harrison et al., 2006). Examples of such and JP
extra role behavior include altruistic behavior, which is also required by employees for the
attainment of organizational objectives. By going through the distinction between task
performance and contextual performance, it can be concluded that competency determines
former whereas motivation is required for the latter.
Green and Heywood (2008) identified two important factors that influence JP, namely
personal aspects of individual and the work environment. Personal aspects include
knowledge, skills, attitudes and motives of the individual and work environment factors are
represented by relationship with superiors, job expectations, incentives and feedback. In the
same vein Amarneh et al. (2010) reported that three factors namely skill, effort and work
conditions jointly interact to influence JP. An important feature of JP is that the observance
and measurement of each employee’s JP with respect to his/her level of contribution is
possible (Lau et al., 2013).This could be one of the reasons attributed to increased attention
which JP received in organizational research. Weiss (2002) opined that JP is the natural
outcome of the alignment between a person’s behavior and the task demands. JP indicates
how well the task has been completed by assessing the results of a person’s behavior and its
impact on organizational effectiveness.

2.4 TL and JP
Two important theories which underpin the relationship between TL and JP are field theory
and neo-charismatic paradigm theory. Field theory posited by Lewin highlights the
individual and organizational interrelationship and also argues about the person-
organization fit and its subsequent impact on stakeholders and society. Neo-charismatic
paradigm theory posited by House and Aditya (1997) explains the way in which effective
leaders’ articulate vision, encourage innovative thinking, stress revolutionary change and
elicit high degree of trust, confidence and performance from the followers (House and Aditya,
1997; Pawar and Eastman, 1997). Transformational leaders are capable of generating a
feeling of self-efficacy among the followers which ultimately results in improved JP (Shamir
et al., 1993). In addition to this, transformational leaders are mentors of their followers and
they provide the required support and resources necessary to achieve the task (Howell and
Hall-Merenda, 1999). The positive relationship between TL and JP was consistently
established by various research studies because of these reasons.
Bass (1985) argued that TL motivates employees to be more dedicated to their jobs and
organizations by enhancing social identification. In his seminal book, he highlighted the link
between TL and employees’ performance beyond expectations. Majority of research in TL
centers on followers’ in-role behaviors (Han et al., 2020). The other important studies which
reported the impact of TL on JP were Ekaningsih (2014); Lowe et al. (1996); Mangkunegara
and Huddin (2016) and Naeem and Khanzada (2018). In line with the above theoretical and
empirical arguments we hypothesize the following:
H1. There is a positive relationship between TL and JP

2.5 TL and CSR

TL theory elucidates the relationship between TL and CSR. Bass (1985) argued that TL
theory better explains the reason for astonishing efforts and performance in organizations.
Similarly stakeholder theory is also pertinent to understand the relationship between the two
JAMR variables. Researchers who studied managers and CSR found that some managers pursue
CSR for their own benefit (Wright and Ferris, 1997) where as some others pursue CSR to
improve organization’s profitability (Russo and Fouts, 1997).
Limited empirical evidences were reported in the literature about TL–CSR relationship.
For example Waldman et al. (2006) while studying the role of chief executive officers and
firms’ engagement in CSR found a significant relationship between leadership style of CEO
and strategic CSR. They conducted study among fifty six major US and Canadian firms and
also reported that intellectual stimulation of CEO is significantly associated with CSR
activities that are connected with strategy of the firm. Similarly Alrowwad et al. (2016) also
proved the empirical relationship between TL and CSR. Taking into consideration the above
arguments and findings, we hypothesize the following:
H2. There is a positive relationship between TL and CSR

2.6 CSR and JP

Two important theories which explain the relationship between CSR and JP are social
exchange theory and social identity theory. Social exchange theory (Blau, 1964), which
highlights the reciprocity of social interactions, is a better rationale for employees’ improved
JP arising out of CSR. Employees’ positive perception about organization’s investment in
them through CSR activities create an obligation to reciprocate by improving their JP.
According to the social identity theory propounded by Tajfel and Turner (1986), individuals
identify with a social entity when they perceive a connection with it. As per this theory, the
positive behavior of the organization toward various stakeholders influence employee to
have a positive personal identity with the organization. Employees’ who are able to
understand the congruity between their own values and morals with organizational actions
can experience organizational identification which will culminate into better JP.
There is paucity of empirical evidence with respect to the relationship between CSR and
JP. Majority of the empirical studies were conducted in the Western context. For instance
Korschun et al. (2014) while conducting a study among the employees of Global 500
financial services company found that CSR successfully generated organizational
identification among them which resulted in improvement in JP. Story and Neves (2014)
established the predictive power of CSR on JP through their study and posited that
employees are more willing to reciprocate organization’s good deeds by improving their JP.
Story and Castanheira (2019) while studying the mediating roles of job satisfaction and
affective commitment on the relationship between CSR and JP found a direct link between
perceptions of CSR and employees’ JP. Similarly Suganthi (2019) examined the relationship
between CSR, employees’ pro-environmental behavior and performance and found a
significant impact of CSR on JP. They also found that adoption of greener practices mediate
the relationship between CSR and JP. Other important studies that reported the relationship
between CSR and JP were by Edwards and Kudret (2017); Farooq et al. (2013) and Sun and
Yu (2015).
Considering the above theoretical and empirical arguments, we hypothesize the following:
H3. There is a positive relationship between CSR and JP

2.7 Mediating role of CSR in the relationship between TL and JP

The main contention of the present study, the mediation of CSR in the relationship between
TL and JP is based on the stakeholder theory which implies that managerial style determines
the extent to which stakeholder’s interests are met by managers. As employees’ are one of the
stakeholders of the organization, fulfillment of their interests’ impact their performance on
the job. Deshpande (1996) reported that the perception which employees’ have about the CSR
activities in the organization impacts their opinion about overall organizational climate and The mediating
ultimately influences their JP. role of CSR
The empirical study conducted by Manzoor et al. (2019) in small and medium enterprises
in Pakistan found support for the mediating role of CSR in the impact of TL on JP. Similarly
between TL
Hongdao et al. (2019) also established the mediation of CSR in TL–JP relationship when they and JP
conducted study among the law firms in Pakistan. Apart from these two studies, we could
not find any major empirical evidence about the mediating role of CSR in the TL–JP
relationship.
After considering the above theoretical arguments and limited empirical evidences,
present study proposes that CSR mediates the TL–JP relationship. To test this, the following
hypothesis is drawn:
H4. CSR mediates the relationship between TL and JP
The research model of the present study is presented in Figure 1

3. Methodology
3.1 Research methods and data collection
Present study used cross-sectional research design. To test the hypotheses and to establish
relationships among the variables, data were collected from the respondents using self-
reported questionnaires. Data were collected from 306 full time employees working in 20
large manufacturing organizations in Kerala. These 20 organizations were selected on the
basis of the following conditions: a) more than 100 employees are on the muster roll of the
organization, b) organization is actively pursuing various CSR activities and c)
organization has formal human resource policies and practices. The data for the present
study were collected through online by way of Google docs. The link of the questionnaire
was posted on certain social networking groups (SNG), the members of whom were
employees. To encourage respondents to record an impartial response to the questionnaires
circulated, confidentiality and anonymity were assured. Of the 515 questionnaires
distributed, 306 fully completed questionnaires were returned indicating a response rate
of 59.42%
Sampling adequacy was satisfied by performing Kaiser-Meyer-Olkin (KMO) measure of
sampling adequacy which was found to be 0.911, and Bartlett’s test of Sphericity was
significant at 0.000. This meets the condition (KMO 5 >0.7, significance level < 0.05)
prescribed by Field (2005). Apart from this, sample also satisfies condition for path modeling
suggested by Hoyle (1995). He prescribed a minimum of 200 samples for performing a good
path modeling which was also met in the present study.
Among the sample, 72.9% were male employees and the remaining 27.1% female
employees, 67.6% are married and 32.4 unmarried. With regard to age group, 25.8% belong
to the age group 21–30, 27.5% in the 31–40, 26.1% in 41–50 and remaining 20.6% in the 51–60
age group. With respect to the work experience of respondents, 27.1% have 0–10 years of
experience, 47.7% have 11–20 and 25.2% have more than 20 years of experience.

H4
Corporate Social
Responsibility H3
H2
Figure 1.
Transformational
Job performance Theoretical model
Leadership
H1
JAMR 3.2 Measures
Three standardized questionnaires were used to collect data for the present study. The details
of the three questionnaires are presented below:
Transformational leadership: The independent variable, TL was measured using the six
item scale developed by Wang et al. (2005). Typical items in the questionnaire include “My
manager inspires others with his future plans”, “My manager challenges me to think about
old problems in new ways”.
Corporate social responsibility: The mediator variable CSR, was assessed by using the
sixteen item scale developed by Iqbal et al. (2018). Sample items in the questionnaire include
“My firm has a proper employee evaluation system, which gives importance to fairness
toward co-workers and business partners”; “My firm gives importance to activities, which are
particularly important for the public wellbeing of society”.
Job performance: The dependent variable JP was measured using the five item scale
developed by Janssen and van Yperen (2004). Sample items in the questionnaire include “I
(employee) consistently complete the duties specified in my job description”; “I (employee)
consistently meet the performance requirements of the job”.
All the scales were on a five-point Likert scale with options ranging from 1 (strongly
disagree) to 5 (strongly agree).

3.3 Analytic approach

To test the proposed research model, we used SPSS version 21 for the preliminary analysis,
AMOS version 21 for model fit and Hayes and Preacher’s (2013) PROCESS macro for testing
the mediation.

4. Results
4.1 Descriptive statistics
Table 1 presents the results of descriptive statistics, correlation and reliability analysis.
Cronbach’s alpha value of the variables ranged from 0.833 to 0.943 (JP 5 0.849, TL 5 0.833
and CSR 5 0.943) thus indicating acceptable reliability (George and Mallery, 2003). Table 1
also shows existence of strong positive correlation among the three variables.

4.2 Common method bias

Common method variance can happen if all the variables in the study were collected from the
same source by adopting the same method. Harman’s single factor test (Podsakoff and Organ,
1986) was used to check common method bias in the study. The unrotated factor structure of
the variables was examined and found that no single factor accounted for the majority of the
variance. The total variance for a single factor in the study was found to be 44.85%, which is
less than 50%. Thus the issue of common method variance is ruled out.

4.3 Principal component analysis

After the initial analysis, principal component analysis was conducted using all the
constructs and items with a varimax rotation. The results are presented in Table 2

Mean SD α (1) (2) (3)

Table 1.
Mean, standard (1) Job performance 3.798 0.599 0.849 1
deviation, correlation (2) Transformational leadership 4.189 0.632 0.833 0.513** 1
and reliability of (3) Corporate social responsibility 4.499 0.618 0.943 0.616** 0.515** 1
variables Note(s): SD: Standard deviation; α: Cronbach’s alpha; **p < 0.01
Item 1 2 3
The mediating
role of CSR
CSR13 0.797 between TL
CSR14 0.795
CSR10 0.781 and JP
CSR11 0.751
CSR1 0.741
CSR9 0.737
CSR3 0.736
CSR2 0.730
CSR6 0.725
CSR12 0.722
CSR16 0.715
CSR4 0.713
CSR5 0.712
CSR15 0.707
CSR7 0.700
TL6 0.861
TL5 0.812
TL4 0.695
TL2 0.687
TL1 0.657
JP2 0.835
JP4 0.790
JP1 0.789
JP3 0.779 Table 2.
Note(s): JP: Job performance, TL: Transformational leadership, CSR: Corporate social responsibility; Rotated component
Extraction method: Principal component analysis, Rotation method: Varimax matrix

The three factors explained a total variance of 60.89. While performing the principal
component matrix, few items were deleted because of low loading (<0.50). In TL, item number
3 was deleted, in CSR, item number 8 was deleted and in JP, item number 5 was deleted.

4.4 Convergent and discriminant validity

Average variance extracted (AVE) was calculated to establish convergent validity. Table 3
presents the results of composite reliability (CR), AVE and discriminant validity. CR value of
the variables ranges from 0.837 to 0.952 (TL 5 0.837, CSR 5 0.952, JP 5 0.908) and AVE of the
variables ranges from 0.563 to 0.711 (TL 5 0.566, CSR 5 0.563, JP 5 0.711). For all the
constructs, CR and AVE were above the cut-off value of 0.7 and 0.5 as suggested by Hair et al.
(2010) and Straub et al. (2004). Discriminant validity of the present model was established by
adopting the procedure suggested by Fornell and Larcker (1981). They recommended that
square root of the AVE should be greater than the correlation values either across the rows or
columns.

CR AVE (1) (2) (3)

(1) Job performance 0.908 0.711 0.843

(2) Corporate social responsibility 0.952 0.563 0.643 0.751 Table 3.
(3) Transformational leadership 0.837 0.566 0.439 0.509 0.752 Convergent and
Note(s): AVE: Average variance extracted; CR: Composite reliability discriminant validity
JAMR 4.5 Model fit
The model fit was assessed using various indices which include chi-squared measure,
goodness of fit, comparative fit index, Tucket-Lewis index and mean square error of
approximation. The findings are presented in Table 4
Results from Table 4 showed that GFI was 0.91, TLI 5 0.935, CFI 5 0.952, TLI 5 0.935,
RMSEA 5 0.069 which suggests a good model fit as recommended by Byrne (2016);
Diamantopoulos and Siguaw (2006) and Hooper et al. (2008).

4.6 Regression analysis

Four hypotheses were tested in the present study. H1 hypothesized a positive relationship
between TL and JP and through regression analysis it was found that TL has a positive
relationship with JP (β 5 0.486, t 5 10.421, p < 0.001). Thus H1 is fully supported. H2 tested
the positive relationship between TL and CSR, results revealed that TL has a positive
relationship with CSR (β 5 0.503, t 5 10.484, p < 0.001). These results provide full support for
H2. Positive relationship between CSR and JP was hypothesized in H3 and it was found that
CSR has a positive relationship with JP (β 5 0.597, t 5 13.646, p < 0.001). Thus H3 is fully
supported. The three direct relationships hypothesized in the study found full support.

4.7 Mediation analysis

In the present study, the mediating role of CSR in the impact of TL on JP was tested through
the bootstrapping method using Hayes and Preacher’s (2013) process macro. This mediation
approach is considered more effective than Sobel’s test for assessing the indirect effects. The
mediation model was examined using model 4 of PROCESS macro, 95% confidence interval
of the parameter estimates were obtained by running resampling 5,000 times.
Table 5 revealed that the indirect effect of TL on JP through CSR is significant as zero falls
outside the 95% confidence level (0.117, 0.369). It was also shown that the direct relationship
between TL and JP is also significant (0.158, 0.346), thus H4 is partially supported. Here both
direct and indirect effects are significant and in the same direction, therefore complementary
partial mediation is established. Therefore we can confirm that CSR partially mediate the
relationship between TL and JP.

Index Model value Recommended value Reference

χ /df
2
2.461 <3 Hooper et al. (2008)
RMSEA 0.069 <0.07 Steiger (2007)
NFI 0.923 >0.90 Byrne (2016)
TLI 0.935 >0.90 Byrne (2016)
Table 4. CFI 0.952 >0.90 Byrne (2016)
Model fit indices GFI 0.91 >0.90 Hair et al. (2010)

Effect of TL on JP Effect Se T p LLCI ULCI

Table 5. Total effect 0.486 0.046 10.421 0.000 0.394 0.576

Total, direct and Direct effect 0.252 0.048 5.267 0.000 0.158 0.346
indirect effect of TL Indirect effect 0.234 0.064 (Boot se) 0.117 0.369
on JP Note(s): N 5 306; LLCI 5 lower level confidence interval; ULCI 5 upper level confidence interval
5. Discussion The mediating
The main objective of the present study was to demystify the underlying mechanism in the role of CSR
relationship between TL and JP. Even though previous research established impact of TL on
JP, the role of mediators like CSR in this relationship is neglected. Our study is one of the
between TL
pioneer attempts to provide empirical evidence to the mediating role of CSR in the TL–JP and JP
relationship in the Indian context. Mediation analysis conducted using PROCESS macro
revealed that CSR partially mediates the impact of TL on JP. This finding supports the earlier
empirical studies conducted by Manzoor et al. (2019) and Hongdao et al. (2019) in Pakistan.
Thus the outcome of the present study is in consonance with stakeholder theory and supports
the contention that when leadership promotes CSR activities for the welfare of its
stakeholders, one can expect improved JP from the employees. Thus through the present
study, we addressed the need to conduct more empirical research to uncover the processes
linking TL and JP (Wang et al., 2013). Findings of the present study uncovered a new
relationship, the mediating effect of CSR on the relationship between TL and JP. The present
study extends previous research results by evincing the underlying mechanism between TL
and JP. It supports the notion that for a better understanding of the predictors of JP, it is
important to focus on TL and CSR factors simultaneously. Adopting TL style in the
organization and actively pursuing CSR activities are pivotal and very much needed to
enhance employees’ JP. Results illustrate that practicing TL in the organization encourage
organization’s commitment toward CSR activities which in turn will culminate in better JP.
While testing our research model, we also found a direct positive relationship between TL
and JP. This is in concordance with earlier findings reported by Ekaningsih (2014); Lowe et al.
(1996); Mangkunegara and Huddin (2016) and Naeem and Khanzada (2018). Thus our study
supports previous individual as well as meta-analysis studies that established positive
influence of TL on JP. The fundamental assumption behind this relationship is that
transformational leaders facilitate employee development which results in employees
acquiring knowledge and skills required to tackle major challenges in the work environment
(Shahhosseini et al., 2013). This results in increased satisfaction and commitment from
employees which later culminate in improved JP. Moreover, transformational leaders elicit
superior JP from their employees by encouraging them to think creatively, convincing them
to exert extra effort and providing constructive feedback. TL ensures that employees
perceive organizational success as their own success and they identify themselves with the
goals and values of the organization. Present study enriches the theoretical perspectives (field
theory and neo-charismatic paradigm theory) underpinning TL–JP relationship. Thus the
unique contribution of TL in enhancing JP is highlighted in this study.
Previous research overlooked the impact of CSR on JP at the individual level (Aguinis and
Glavas, 2012; Rupp and Mallory, 2015). There is a genuine need to conduct more empirical
studies to bridge this gap as employees are one of the critical stakeholders and their
performance is the only differentiating factor with respect to competitive advantage and
organizational prosperity. Through our study, we found a positive relationship between CSR
and JP which is in line with earlier works of Edwards and Kudret (2017); Korschun et al.
(2014); Story and Castanheira (2019) and Suganthi (2019). CSR initiatives of the organization
aimed at the welfare of others encourage employees to enhance their performance. Since CSR
activities are not directly connected to profitability, employees will always have positive
perception about the organization’s helping behavior. CSR can be a source of pride for the
employees (De Roeck et al., 2016) and motivate them to perform better. Moreover, CSR
activities for the welfare of employees will have a strong impact on the employees’ JP.
Employees will reward the organization through their improved JP if they perceive that
organization is investing in them.
Our study also showed positive relationship between TL and CSR which is in resonance
with the earlier findings reported by Alrowwad et al. (2016) and Waldman et al. (2006).
JAMR Managers who have TL quality show more favorable attitude toward the stakeholders. TL
traits such as intellectual stimulation, motivation and having a compelling vision are more
inclined toward implementing various CSR activities.
Present study uniquely contributes to the literature on TL and JP by evincing a new
mechanism, i.e. CSR. One of the pathways that underlie the relationship between TL and JP is
elucidated through this study. Findings of the present study assume significance as very few
studies were conducted to identify the mediating role of CSR in the TL–JP relationship. In the
present study, in addition to the mediation analysis three direct relationships were also
examined, which established, TL as an antecedent of CSR and JP and CSR as an antecedent of
JP. These findings are in concordance with the existing literature.

5.1 Practical implications

The study offers pivotal implications to the practitioners. Among all the factors that influence
organizational effectiveness, JP occupies a pivotal position. Therefore one of the primary
concerns of organization is to improve the performance of its employees. As evidenced in the
study, organizations that practice TL promote CSR and the resultant effect will be improved
JP of employees. Adequate care should be taken to encourage organizational leaders to
practice TL at all levels in the organization. Due diligence should also be taken by
organizations to ensure that their managers have important TL qualities such as visionary,
inspiring ability and intellectual stimulation. Organizations must have transformational
leaders at all levels as it is impossible for them to sustain profitability, competitive advantage
and organizational performance without TL (Bass et al., 2003; Lussier and Achua, 2007). In
the days of volatility and hyper competition, employees view work as a curse. In such a
situation, employee engagement is very challenging to achieve. In organizations which follow
TL and CSR, employees may not view work as a curse, instead they view work as status,
freedom and personal fulfillment. In such situations employee engagement happens via
competence, autonomy, social networks and personal growth. Employees’ perception about
the TL style of their managers can very well contribute to their higher JP in the organization.
Transformational leaders can bring in the much needed change in individual, group and
organizational behaviors. It not only improves task performance but also other parameters of
JP such as contextual and creative performance. Employees may be voluntarily willing to
exert more effort if they have positive perception about the TL adopted by their leaders.
Presence of TL in the organization will result in a confident and motivated workforce who
attaches more intrinsic value to their performance. In addition transformational leaders show
genuine concern toward intrinsic motivation, progress and development of their employees
(Yahaya and Ebrahim, 2016). The advantage of having transformational leaders in the
organization is that they can encourage employees to collaborate to achieve overarching
goals of the organization (Sun et al., 2014). They can impact the outcome at the individual,
team and organizational level (Lin et al., 2016). Attainment of organizational objectives in
competitive environment is made possible through practicing TL in organization.
Transformational leaders always try to ensure an alignment between work role of the
followers and the vision of the organization resulting in enhanced motivation. (Zhu et al.,
2013). Success of all organizations depend on how well they treat their employees (Iqbal,
2019), transformational leaders ensure fair treatment of their employees through practicing
organizational justice. Another advantage of transformational leaders is that they can
enhance employees’ self-perceived employability which ultimately culminate in better
commitment and improved JP. The major change in employees’ behavior by the
transformational leaders is made possible through behaviors such as inspirational
motivation, individualized consideration, idealized influence and intellectual motivation.
TL in an organization can make sure that employees are fully ingrained in their job both
physically and psychologically thus resulting in improved JP (Lai et al., 2020).
 Evidence from this study shows that TL style adopted by managers can facilitate CSR The mediating
activities to a great extent. Implementation of CSR activities by the organization facilitate in role of CSR
the positive perception of self-worth as well as an opportunity to achieve a higher purpose in
the workplace by the employees. Positive perception about organization’s CSR by employees
between TL
improves their satisfaction and JP (Kunda et al., 2019). It is logical to believe that employees’ and JP
perception about CSR in the organization influences their work attitude which in turn affects
their JP. Managers should ensure well-crafted CSR policies in the organization as it bolster the
self-esteem of their employees which later results in improvement in their JP (Chaudhary,
2017). Besides this, through CSR organizations can send a signal that employees are their
valuable assets and can instill customer oriented values among them (Luu et al., 2019).
Managers must be cautious about the tendency to overlook internal CSR when giving more
emphasis to external CSR activities. As employees are one of the major stakeholders, they
must be treated well by providing work life balance programs, career development
opportunities, family friendly policies and training and diversity management initiatives. If
organization is successful in providing these programs, then employees will have a positive
perception about the organizational support. Such perceived organizational support create an
obligation among the employees to perform better. Care shall be taken by organizations to
develop the leadership potential of managers by offering various leadership development
programs. Organizations providing such training programs can outperform organizations
that show a lackluster attitude toward developing their managers’ leadership potential. Such
improvement in organizational performance happens through operational excellence and
superior strategy formulation and execution via subordinates’ enhanced JP. Organizational
leaders are advised to give paramount importance to TL and CSR as our study revealed that
to certain extent JP can be promoted through these two variables. Enhancing JP of employees
through practices like TL and CSR definitely would result in organizational performance
improvement and sustainability.

5.2 Limitations and future directions

In spite of strengths of the present study, there are some limitations which we want to
highlight. First is with the cross sectional information about the variables which may limit the
generalizability of the findings. Second, all the variables were measured using self-reports
which may inflate the relationship between the variables. Even though the threat of common
method variance was ruled out by performing Harman’s singe factor test, future research
studies shall be conducted by sourcing data from multiple sources. For example data about
predictor and mediator variables can be collected from employees and data with regard to
outcome variable can be sourced from the managers. Using longitudinal design, our research
model should be retested in other industries such as telecom, retail or tourism for ensuring
generalizability. To expand insights about the underlying mechanism behind TL–JP
relationship, more variables like intrinsic motivation, self-efficacy and manager recognition
shall be simultaneously studied using serial, parallel mediation or moderated mediation.
Additionally demographic variables can be studied as moderators in the TL–JP relationship
which will enrich the existing literature.

6. Conclusion
A research model was proposed based on neo-charismatic paradigm theory, TL theory,
stakeholder theory and social identity theory which was empirically tested through
mediation analysis using PROCESS macro. We studied the mediating role of CSR in the
impact of TL on JP in the manufacturing sector in India. The outcome of this research
empirically supported all the hypotheses. Results showed that CSR partially mediates the
JAMR relationship between TL and JP. Our study is one of the prominent attempts to study the
mediating role of CSR in the TL–JP relationship in Indian context thus highlighting the
importance of promoting both TL and CSR for improving JP in the organization.

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About the authors

Jnaneswar K is an Associate Professor in HR, OB and Strategy in CET School of Management, College of
Engineering, Trivandrum. He has Doctoral degree in Management from the University of Kerala. He is
an Accredited Management Teacher (AIMA) with more than seventeen years of experience in both
industry and academics. He has publications in various Scopus and ABDC indexed journals. His
research interests are in the areas of HRM, OB, Talent management and Strategic management.
Jnaneswar K is the corresponding author and can be contacted at: jnaneswar@gmail.com
 Gayathri Ranjit is an Assistant Professor in Operations and Systems area in CET School of The mediating
Management, College of Engineering, Trivandrum. Her areas of interests are Total quality management,
knowledge management and project management. She has more than a decade of experience in both role of CSR
industry and academics. between TL
and JP

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