Integration Strategy, Transformational Leadership and Organozational Commitment in Korea's Coorporate Split-offs

Abstract

This study dealt with organizational commitment, as a result of integration strategy along with the effect of transformational leadership in the context of corporate split-off. A research model analyzing corporate split-off in terms of organizational commitment was proposed and empirically tested. Integration strategy included job security, equity, transparency, and communication. Transformation leadership consisted of idealized influence, individualized consideration, inspirational motivation, and intellectual stimulation. In addition, this study hypothesized the differing effects of integration strategy and transformational leadership on affective commitment, depending on the status of the organizational members, i.e., managers vs. employees. The results of this study showed that all the factors of integration strategy were relevant to influence affective organizational commitment. Inspirational motivation and individualized consideration were statistically relevant to explain affective commitment. The moderating effect of organizational status was also identified.