Effects of transformational leadership on psychological empowerment and employee engagement: a comparative study of Bangladesh and Thailand

PurposeGrounded in the transformational leadership theory, conservation of resource theory and job demands-resources model, this paper aims to examine the effect of transformational leadership on psychological empowerment and employee engagement of faculty members in Bangladesh and Thailand. This study also integrates Hofstede's cultural dimensions theory to justify whether transformational leadership could affect psychological empowerment of faculty members in these two countries differently.Design/methodology/approachSurvey data were collected from a total of 457 faculty members from two universities in Bangladesh (n = 243) and two universities in Thailand (n = 241). This study used partial least squares structural equation modeling for analyzing the proposed model.FindingsThe evidence shows that faculty members who worked for department heads and who exhibited transformational leadership demonstrated high level of psychological empowerment and employee engagement. Psychological empowerment also mediates the effect of transformational leadership on employee engagement. Moreover, the degree to which transformational leadership positively affects psychological empowerment is stronger for faculty members in a higher power distance culture (Thailand) than for those faculty members in a lower power distance culture (Bangladesh).Practical implicationsBecause human capital plays a crucial role in determining the potential of universities to achieve superior performance, universities should provide leadership training to help department heads understand the key elements of transformational leadership and apply them in their management practices to promote empowerment and engagement of their faculty members.Originality/valueThe finding provides new evidence that broadens the knowledge from existing research about the cross-cultural effectiveness of transformational leadership, which has not been explored in the area of psychological empowerment.