TRANSFORMATIONAL LEADERSHIP MODEL: THE MEDIATING ROLE OF HIGH-PERFORMANCE WORK SYSTEM ON HOTEL ORGANIZATIONAL PERFORMANCE IN BANGKOK

Abstract

This study examines the mediating function of High-Performance Work Systems (HPWS) in the relationship between transformational leadership and organizational performance within Bangkok’s luxury hotel sector. This research empirically examines the role of HPWS as a transmission mechanism within a distinctive cultural context frequently neglected in prevailing Western-centric models, thereby addressing a significant gap in the literature. A mixed-methods approach was utilized for thorough investigation. Data collection was conducted in the quantitative stage through a reliable, self-administered survey (Cronbach's alpha = 0.940) of the top management of a large sample of five-star hotels. The data were analyzed using Structural Equation Modeling (SEM). The qualitative research involved detailed interviews with 30 hotel managers, and the data underwent thematic analysis using the ATLAS.ti software to provide deep contextualized information. The results indicated a clear and significant mediated path. Transformational leadership showed a significant positive direct effect on the implementation of HPWS (β = 0.38, p < .01) but did not have a significant direct effect on organizational performance. Instead, HPWS had a fully moderate effect on this relationship, indicating a significant direct impact on performance (β = 0.55, p < .01). Overall, the impact of transformational leadership on performance was significant (β = 0.209, p < .01), and it was mediated by HPWS. The overall model was a good fit and explained 32.5 percent of the variance in the performance of the organizations (R2 = 0.325), a significant amount given the complexity of the service industry. These findings were supported by the qualitative data obtained from interviews with the executives, analyzed with the help of ATLAS.ti. Leadership commitment was identified as the core element for successful implementation of HPWS. Participants emphasized the need to carefully adapt HPWS to the unique socio-cultural environment of Thailand, particularly emphasizing collectivist values and respect for authority as essential for effectiveness. Challenges associated with implementation were also detected, such as resource limitations in smaller properties. Employee involvement in decision-making and training was regarded as important success factors. The research points out that the positive effects of transformational leadership on the performance of hotels in Bangkok are indirect and can only be mediated by the strategic model of a High-Performance Work System (HPWS). Though transformational leaders are inspirational and motivational, achievable implementation of HPWS, such as a stringent selection process, extensive training, payment based on performance, and employee participation, is the real deal. The results of this structural change are real improvements in the quality of services, efficiency in operations, and increased performance of the whole company. This will provide managers with a fact-based strategy: in order to achieve a long-term competitive advantage, they have to learn transformational leadership and invest in a culturally sensitive HPWS.