The Effect of Leadership Styles on Employee Turnover Intention: The Case of Nib International Bank, South Addis Ababa Districts
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Date
2026-06-02
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Addis Ababa University
Abstract
This study examined the effect of leadership styles on employee turnover intention in the Southern Addis Ababa branches of NIB International Bank S.C. The study was motivated by increasing employee turnover and the need to understand how leadership behaviour, perceived organizational support, and organizational culture influence employees’ intention to leave. The main objective was to examine the effect of leadership styles on employee turnover intention, identify the strongest influencing leadership style, assess the effect of leadership styles on perceived organizational support, and test the mediating role of perceived organizational support and the moderating role of organizational culture. A quantitative explanatory research design was used. Data were collected from 221 valid respondents using structured questionnaires. The data were analyzed using SPSS version 26 and Hayes PROCESS Macro version 4.2. The findings revealed a strong relationship between variables in employee turnover intention is explained by leadership styles, perceived organizational support, and organizational culture. The model was statistically significant showed that transformational leadership had the strongest negative effect on turnover intention, while autocratic leadership increased turnover intention. Perceived organizational support and organizational culture generally reduced turnover intention. In conclusion, leadership styles influence employee turnover intention directly and indirectly through perceived organizational support, while organizational culture strengthens this relationship, highlighting the importance of supportive leadership and organizational environment for employee retention. Recommendations include leadership development programs focusing on individualized consideration and the institutionalization of employee recognition systems.
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Leadership styles, employee turnover intention, perceived organizational support, organizational culture, multiple linear regression, mediation, moderation.