Does Transactional Leadership

Abstract

The purpose of this study is to examine the influence of transactional leadership style on subordinates’ trust using 300 questionnaires responded by the employees (support staff group) of local authorities located in the central region of peninsular Malaysia. The measurement scale employed in this study has met the acceptable levels of validity and reliability tests of the study. However, performing confirmatory factor analysis based on structural equation modeling (SEM) has remained two of three components of transactional leadership style. They are contingent reward and management by exception (active). The management by exception (passive) was omitted for further analyses. Regression result of SEM analysis indicated that trust was influenced by the transactional leadership style. Further, this study provided the discussions and implications from the findings.