An Investigation of Group Interaction Functioning Stimulated by Transformational Leadership on Employee Intrinsic and Extrinsic Job Satisfaction: An Extension of the Resource-Based Theory Perspective

Resource-based theory (RBT) has long been used to gain a perspective for understanding the relationship between human resource management and the attainment of effective organizational leadership. In this study, we investigate the effect of transformational leadership (TL) on employee intrinsic and extrinsic job satisfaction. In addition, we examine whether mediators in employee group interaction behaviors act as mediators in the TL process. Overall, we attained significant results which were consistent with the RBT predictions but we moved beyond previous RBT studies, offering new findings and insights. It was found that TL has a significant influence on both interaction behaviors and employee job satisfaction, interaction behaviors have a significant influence on satisfaction, and the interaction behaviors act as mediators to enhance the effect of TL on satisfaction. It is suggested that interaction behaviors should be incorporated with TL to increase employee satisfaction because interaction behaviors are highly dependent on TL to support the integration of information, resources, and technology in group goal attainment, which helps to increase satisfaction.