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Job satisfaction has become a key to improve potentials, performance and productivity, on both individuals and organizations. Leadership is one of the tools that increases the level of job satisfaction. Previous studies of leadership suggested that transformational leadership has a direct effect on job satisfaction positively. This study examined the effects of transformational leadership on the level of job satisfaction and considered the influence of cultural factor in terms of power distance on the relationship between transformational leadership and job satisfaction.
The respondents of this study include 160 employees from a Thai company in the consumer goods industry, and the data of whom were analyzed using the hierarchical regression analysis. The findings showed the statistically significant relationship between transformational leadership and job satisfaction while interaction between transformational leadership and power distance were found to reduce the level of job satisfaction significantly. As a result, in the context of Thai culture, an organization can reduce the threat to performance of transformational leaders as affected by the impact of Thai power distance culture by narrowing the power gap between leaders and followers. However, a transformational leader should adapt him/herself to Thai seniority and patronage culture by balancing strength between power and leadership.
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