The influence of leader-member exchange on turnover intention in the hospitality sector in Ho Chi Minh City

Abstract

Employee turnover, particularly in the service and tourism industries, has emerged as a critical concern for organizations due to its association with significant cost fluctuations. This paper assesses the effects of leader-member exchange on employee turnover intentions with the mediators of work engagement and job autonomy. Data were collected from 377 employees currently working in hotels across Ho Chi Minh City. All research hypotheses were supported through partial least squares structural equation modeling (PLS-SEM), emphasizing how strongly negatively Leader-member exchange LME relates to turnover intention. The findings further confirm the mediating effects of both work engagement and job autonomy. This study is, therefore, another validation of this role empirically for LME in reducing the ultimate turnover intention among employees, plus several managerial implications that can be drawn. More specifically, it will assist management in formulating a strategy plan directed toward reducing negative feelings among employees resulting in better performance at work and less intention to leave.