The Impact of Authentic Leadership on Employee Commitment and
Talent Development (From IT SME Employees’ Perspective in Amman,
Jordan)
HAZEM KHALED SHEHADEH
Business Administration,
Zarqa University,
JORDAN
Abstract: - This research aims to identify the Impact of Authentic Leadership on Employee Commitment and Talent
Development (From IT SME employees’ Perspective in Amman, Jordan). To achieve the aim of the research, the
researcher used the descriptive analytical approach. The study population consisted of (360) employees’ in IT
SMEs in Amman, Jordan, A random sample content of (186) employees was chosen, questionnaires were
distributed using Google Forms, and the percentage of correct questionnaires was (94.5%), The research found that
there is an impact of Authentic Leadership on Employee Commitment, and there is an impact of Authentic
Leadership on Talent Development, this study recommends enhancing employee commitment strategies, strengthen
talent development and when hiring, consider assessing candidates not only for technical skills but also for their
alignment with authentic leadership qualities.
Key-Words: - Authentic Leadership, Employee Commitment, Talent Development, IT SMEs. Organizational
Behavior, JORDAN.
Received: February 25, 2024. Revised: July 23, 2024. Accepted: August 19, 2024. Published: September 26, 2024.
1 Introduction
In today's competitive business environment, marked
by fierce competition, organizations face challenges
in increasing the proportion of employees who fully
commit themselves to their organizations. According
to [1], employee commitment is understood as an
employee's psychological connection to the
organization. The greater the commitment level, the
stronger the employee's attachment to the
organization. The commitment of an employee stands
as one of the most valuable assets for any
organization, [2]. In recent decades, organizations
also have grappled with retaining top talent amid
market competition and scarcity, prompting leaders
to enhance human resource strategies. In the last
twenty years, talent management and talent
development have become highly popular,
recognizing key human resources as strategic
partners in successful business strategies, [3].
Effective talent management ensures that employees'
skills and capabilities are continuously developed,
which not only aids in retaining top talent but also
drives organizational success. Nowadays, the most
extensively researched leadership style in literature is
authentic leadership. This approach revolves around
leaders motivating their teams to exceed expectations
by exemplifying a positive role model, fostering
interactive and appealing visions of the future,
inspiring individualistic and creative thinking, and
demonstrating both caring and determination in their
actions, [4]. Authentic leadership represents an
emphasis on the ethical development of leaders and
the advancement of legitimacy, [5]. This research
aims to explore the impact of authentic leadership on
employee commitment and talent development from
the perspective of IT SME employees in Amman,
Jordan. Understanding how authentic leadership
influences these critical factors can provide valuable
insights for organizations striving to enhance their
human resource strategies and foster a committed,
talented workforce.
2 Research Problem and Questions
The research problem arises from the importance of
authentic leadership within contemporary
administrative literature. Authentic leadership holds a
significant position among emerging leadership
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styles, with a heightened emphasis on the critical
matter of employee commitment, particularly in the
modern business environment. Additionally, the
pivotal role of talent development is highlighted for
its contribution to elevating organizational
commitment. From a practical perspective, the
researcher chooses SMEs within the IT sector in
Amman, Jordan. This choice is informed by the
necessity for IT companies to remain attuned to the
latest shifts in the business environment. Moreover, it
underscores the importance of determining the
appropriate leadership style that management should
adopt to raise the level of employee commitment and
develop talent within the company. By reviewing the
research problem, the main question can be
formulated as: Is there an impact of authentic
leadership on employee commitment and talent
development from the perspective of IT SME
employees in Amman, Jordan?
Sub-Questions:
1. What is the level of Authentic Leadership in IT
SMES in Amman, Jordan?
2. What is the level of Employee Commitment in IT
SMES in Amman, Jordan?
3. What is the level of Talent Development in IT
SMES in Amman, Jordan?
4. Is there an impact of Authentic Leadership on
Employee Commitment in IT SMES in Amman,
Jordan?
5. Is there an impact of Authentic Leadership on
Talent Development in IT SMES in Amman,
Jordan?
3 Research Importance
Within today's business environment, the study titled
"The Impact of Authentic Leadership on Employee
Commitment and Talent Development (From IT
SMEs Employees’ Perspective in Amman, Jordan)"
holds significant value as it explores intricate
dimensions within its variables. Authentic leadership,
employee commitment, and talent development stand
as focal points resonating profoundly in the dynamic
realm of Information Technology Small and Medium
Enterprises (IT SMEs). The theoretical importance
arises from the research's focus on an
underrepresented area. This study provides a unique
examination of how authentic leadership shapes
employee commitment and talent development in the
context of IT SMEs, uncovering unexplored
dynamics. Unlike conventional studies, it delves into
the nuanced interconnections between authentic
leadership, employee commitment, and talent
development, unveiling their collective impact on
organizational performance. This not only enhances
theoretical understanding but also introduces fresh
insights into these crucial interdependencies. From a
practical standpoint, the research assumes
significance in light of the pivotal role played by IT
SMEs. Their contributions to innovation and
economic growth underscore their importance.
Insight into how authentic leadership moderates the
relationship between employee commitment and
talent development becomes essential for operational
efficiency, promoting employee engagement, and
making strategic decisions tailored to the unique
landscape of IT SMEs in Amman, Jordan.
4 Research Objectives
This research aims to examine The Impact of
Authentic Leadership on Employee Commitment and
Talent Development (From IT SME employees’
Perspective in Amman, Jordan).
Sub-Objectives
1. Explaining the concept of authentic leadership,
employee commitment, and talent development.
2. Determining the impact of authentic leadership
on employee commitment and talent
development in IT SMEs in Amman, Jordan.
3. Providing recommendations to managers in IT
SMEs in Amman, Jordan, for enhancing
authentic leadership practices and the role of
employee commitment and talent development to
augment organizational performance.
4. Providing recommendations for future research
studies in the realm of authentic leadership,
employee commitment, and talent development
within the context of IT SMEs in Amman, Jordan.
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5 Research Model
The Figure 1 explains the research model:
Fig. 1: The research model was designed by the
researcher
6 Research Hypotheses
H1: There is an impact of Authentic Leadership on
Employee Commitment in IT SMES in Amman,
Jordan.
H2: There is an impact of Authentic Leadership on
Talent Development in IT SMES in Amman, Jordan.
7 Literature Review
The contemporary discourse on authentic leadership
is characterized by its integration of various
leadership styles, including servant, transformational,
charismatic, and spiritual leadership. [6], underscore
the essential characteristics of authentic leaders, such
as self-confidence, optimism, hopefulness, flexibility,
and a strong sense of ethics or morality. These traits
contribute to the development of authentic leaders'
behavior, fostering honest relationships that, in turn,
create an ethical work environment. Authentic
leadership is further described as having a proactive
orientation toward enhancing organizational strengths
and cultivating engaging, caring, and inclusive
climates within the workplace. The study by [7],
emphasizes the positive outcomes associated with
authentic leadership, noting that when followers
perceive their leader's behavior as appropriate, it
correlates with heightened levels of commitment,
satisfaction, adherence to organizational practices,
and overall achievement. The establishment of trust
among followers is identified as a pivotal aspect of
authentic leadership, with [8], highlighting the role of
supportive behavior and transparent relationships in
building this trust. [9], contribute to the literature by
delineating four essential components of authentic
leadership behavior: self-awareness, balanced
processing, an internalized moral viewpoint, and
relational transparency. These components
collectively underscore the emphasis on positive
psychological capability and moral principles to
inspire follower self-development. [10], adds nuance
to the definition of authentic leadership by
emphasizing its foundation in solid ideals and
principles derived from a leader's self-awareness,
impacting organizational members through open
connections. [11], further characterize authentic
leadership as a systematic behavior with the dual
objectives of building positive psychological capital
in followers and fostering a positive organizational
culture characterized by values, positive work
beliefs, transparency, and responsibility. An effective
way to ensure that team members fully embrace
managerial self-determination and experience
authentic leadership commitments is by emphasizing
the persuasive aspects [12]. Collectively, these
studies contribute to a comprehensive understanding
of authentic leadership, highlighting its diverse
components and positive implications for
organizational dynamics. [13], delineates
commitment into emotional attachment, recognition
of benefits (continuance commitment), and feelings
of obligation (normative commitment). This multi-
faceted conceptualization sets the stage for
understanding the nuanced nature of employee
commitment and its implications for organizational
outcomes. [14], highlighted the importance of
employee commitment as a predictive factor for both
job satisfaction and performance. The assertion that
employees with a strong commitment are vital for
achieving optimal individual performance
underscores the instrumental role commitment plays
in the organizational context. [15], frame employee
commitment as a dynamic process, characterizing it
as a sequence of activities directed toward the
achievement of specific goals. This perspective
emphasizes the active and evolving nature of
commitment within the employee-organizational
relationship. [16], provide a comprehensive
definition of employee commitment, highlighting its
emotional dimensions, as well as the identification of
organizational goals, values, and traditions.
Committed employees, according to this definition,
exhibit a psychological attachment to the
organization, actively committed to providing quality
service, and are less likely to consider leaving. [17],
extend the understanding of employee commitment
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by emphasizing the connection and support
employees exhibit within the organizations they
serve. This dimension adds a contextual layer to the
conceptualization of commitment, considering the
broader organizational environment. Employee
commitment enhances an employee's performance
and productivity, thereby amplifying opportunities
for increased rewards, recognition, and promotions.
Through commitment, employees engage in the
exchange of ideas within their peer groups. This
dedication prompts employees to invest their energy
and time in their work, surpassing other priorities.
The higher the commitment and stability an
employee exhibits, the greater the level of self-
efficacy experienced, reflecting positively on their
psychological, health, and personal aspects [2]. The
literature also explores the correlation between
employee commitment and turnover, with [18],
noting a negative relationship. Less committed
employees are characterized by minimal engagement,
demonstrating only the necessary behaviors for
employment. In contrast, those displaying
commitment, often linked with job satisfaction, are
more likely to go above and beyond their obligations,
showcasing loyalty and contributing to superior
performance. According to [19], Talent development
serves as a comprehensive framework, transforming
individuals from mere factors of production into a
contributing force that sustains progress. Through
training, a company demonstrates its commitment to
and investment in employees, signaling their
importance to the organization's survival and
prosperity. This creates incentives for employees to
remain with the organization and motivates all staff
to perform at high levels. Developing and enhancing
the talent base strategy involves training individuals
with varied tasks, and assessing their abilities and
potentials within the talent base. Subsequently,
identifying deficiencies in the talent matrix elements
and developing a training program to address these
shortcomings, contributes to improve training
outcomes [20]. [21], contribute to the understanding
of talent development by framing it as a set of actions
specifically designed to enhance the skills of
individuals within the workplace. This emphasis on
skill augmentation positions talent development as a
proactive approach to building a capable and
adaptable workforce. The positive impact of talent
development on organizational performance is
underscored by [22]. This association between talent
development initiatives and enhanced organizational
outcomes highlights the strategic importance of
investing in the growth and proficiency of employees.
Talent development is further positioned as a critical
tool for gaining a competitive advantage through
career development, performance enhancement, and
succession planning for talented employees. [23],
suggest that organizations can enhance employee
career development, engagement, and retention by
implementing practices such as mentoring, training,
and coaching. [24], emphasize the role of the talent
development process ineffective retention. The
literature suggests that providing employees with
opportunities for training and development, coupled
with avenues for professional growth, plays a pivotal
role in retaining skilled and motivated individuals.
[25], shed light on the employee perspective,
indicating that considerations such as chances for
training and development, as well as opportunities
for professional growth, significantly influence
individuals when selecting a preferred job.
Organizations that actively demonstrate a
commitment to talent development are perceived
positively, influencing the decision-making process
of potential employees.
8 Research Methodology
A descriptive-analytical approach was used in this
research, focusing on the impact of authentic
leadership on employee commitment and talent
development (from IT SME employees’ perspective
in Amman, Jordan). To achieve the research aim, the
researcher utilized a convenience sample. Primary
data were gathered using a questionnaire comprising
35 items, and the research is structured on a five-
point Likert scale. Subsequently, the collected data
underwent analysis through SPSS software.
9 Research Population and Sample
The study population consisted of (360) employees in
IT SMEs in Amman, Jordan. The random sampling
method was used, and the sample size was (186).
After checking the sample, (12) questionnaires were
excluded, which constitutes (6.4%) of the total. The
number of questionnaires that were valid for analysis
was (174), constituting (93.5%) of the sample. The
questionnaire was distributed using Google Forms.
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10 Data Analysis
10.1 Descriptive Statistics
In order to shed light on the features of numerous
variables, such as Authentic Leadership, Employee
Commitment, and Talent Development, descriptive
statistics provide a mathematical explanation of their
mean values. The levels of respondents’ answers
based on their importance were determined using the
formula outlined by [26], Table 1 (Appendix) shows
the ranges of computed levels.
Table 2 (Appendix) above presents the
descriptive statistics for a total of 6 columns. The
first column contains the names of the variables, the
second column displays the sample size of the
research. The third column shows the mean value
observed in the responses for each variable, while the
fourth column presents the standard deviation value
recorded for that variable. The fifth column indicates
the level of the variables, respectively. The mean
value for the independent variable "Authentic
Leadership" is calculated to be 3.78, with a standard
deviation of 0.972. For the variable "Employee
Commitment," the mean value is 3.68, and the
standard deviation is 1.23. Lastly, for the variable
"Talent Development," the mean value is 3.81, and
the standard deviation is 0.697.
10.2 Reliability
Before testing for the expected impacts, it was
necessary to see whether the model had any concerns
with regard to validity and reliability. Cronbach's
alpha was used to calculate the construct reliability.
Many academics have proposed evaluating construct
reliability through measurement criterion thresholds.
As mentioned, Cronbach's alpha must be more than
0.7, [27]. Construct reliability Table 3 (Appendix)
displays the findings of Cronbach's alpha. An
examination of the Table reveals that the Cronbach
alpha values were satisfactory in meeting the
requirements for measurement (all values were
between 0.7 and 0.9). The Cronbach alpha value for
Authentic Leadership is 0.926, Employee
Commitment is 0.951, and Talent Development is
0.784.
10.3 Correlation Analysis
The degree of strength among variables is obtained
by correlation analysis which is given in Table 4
(Appendix). This method also considers the direction
of a relationship between variables. Both positive and
negative correlations between variables are revealed
by the correlation analysis. The direction of the link
is indicated by the sign of the correlation coefficient.
It goes from minus one to plus one. In general, the
lower the correlation between two variables, the
lower the possibility of multi-co-linearity, and vice
versa for higher correlations. The level of association
between variables is displayed in the table. The
strength and direction of a link can be explained with
the help of a Pearson correlation test.
The correlation between the study's primary
factors is shown in Table 4 (Appendix). A positive
(r=0.531**) correlation between Authentic
Leadership and Employee Commitment was found. It
means that both variables are going in the same
direction. The positive r=0.616** correlation
between Authentic Leadership and Talent
Development suggests that when Authentic
Leadership rises, so does Talent Development.
10.4 Regression
In this research, regression analysis was performed
using SPSS. The study's independent variable is
authentic leadership, and the two dependent variables
are employee commitment and Talent Development.
10.4.1 Test of the First Hypothesis
H1: There is an impact of Authentic Leadership on
Employee Commitment in IT SMES in Amman,
Jordan.
Simple Linear Regression was used to test the first
hypothesis
Table 5 (Appendix) shows that the calculated t-
value (7.897) is higher than the t-table (1.861),
indicating statistical significance. It means that there
is an impact of Authentic Leadership on Employee
Commitment in IT SMES in Amman, Jordan. So
we accept the hypothesis, the table also shows that
there is a positive correlation between Authentic
Leadership and Employee Commitment R=.821.
Also, Authentic Leadership contributes to
Employee Commitment by (67.4%). As the B
value is (.656), it means that the increase of one
unit in Authentic Leadership, Employee
Commitment will increase by (.656).
10.4.2 Test of the Second Hypothesis
H2: There is an impact of Authentic Leadership on
Talent Development in IT SMES in Amman, Jordan.
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Simple Linear Regression was used to test the second
hypothesis
Table 6 (Appendix) shows that the calculated t-
value (6.453) is higher than the t-table (1.861),
indicating statistical significance. It means that there
is an impact of Authentic Leadership on Talent
Development in IT SMES in Amman, Jordan. So
we accept the hypothesis, the table also shows that
there is a positive correlation between Authentic
Leadership and Talent Development R=.732. Also,
Authentic Leadership contributes to Talent
Development by (53.5%). As the B value is (.471),
it means that the increase of one unit in Authentic
Leadership, Talent Development will increase by
(.656).
11 Conclusions
The first question revealed a high level of importance
assigned to Authentic Leadership in IT SMEs, as
evidenced by the mean score of 3.78. This mean
score suggests that, on average, respondents view
Authentic Leadership as important. Furthermore, the
score is notably close to the upper limit of the scale,
indicating a widespread acknowledgment of its
importance. The accompanying standard deviation of
0.972 suggests that responses were relatively
consistent and clustered around the mean. In other
words, there is less variability in opinions,
emphasizing the unanimous recognition of the
significance of Authentic Leadership. This leadership
style, characterized by genuineness, transparency,
and integrity, builds trust and positive relationships
within the organization. Moving on to the second
question, Employee Commitment emerged as another
vital aspect in IT SMEs in Amman, Jordan, with a
mean score of 3.68. This score indicates that, on
average, respondents perceive Employee
Commitment as important, although moderately
close to the upper limit of the scale. However, the
standard deviation of 1.23 reveals a higher degree of
variability in opinions compared to Authentic
Leadership. Responses are more spread out from the
mean, reflecting a diverse range of views among
participants. Employee Commitment, associated with
dedication, loyalty, and engagement, is
acknowledged as important, but there is a greater
diversity of perspectives among respondents. This
information is crucial for organizations aiming to
understand and address the varied views on employee
commitment, tailoring strategies accordingly. The
third question focused on the significance of Talent
Development in IT SMEs in Amman, Jordan, with a
mean score of 3.81. This mean score indicates that
respondents, on average, perceive Talent
Development as highly important, with the score
being relatively close to the upper limit of the scale.
The low standard deviation of 0.697 suggests a high
level of agreement among participants, as responses
are closely clustered around the mean. Talent
Development, encompassing activities and strategies
aimed at nurturing employee skills and capabilities,
is recognized as crucial for organizational success.
The consensus among respondents emphasizes the
unanimous acknowledgment of the importance of
talent development in fostering professional growth
within the organization. For the first hypothesis, the
calculated t-value (7.897) surpassed the t-table
(1.861), indicating statistical significance. This
outcome supports the conclusion that there is a
substantial impact of Authentic Leadership on
Employee Commitment in IT SMEs in Amman,
Jordan. Additionally, the correlation table revealed a
positive correlation between Authentic Leadership
and Employee Commitment (R=.821). It was further
observed that Authentic Leadership contributes
significantly to Employee Commitment, accounting
for 67.4%. The B value of (.656) signifies that a one-
unit increase in Authentic Leadership corresponds to
a (.656) increase in Employee Commitment.
Likewise, the second hypothesis was confirmed as
the calculated t-value (6.453) exceeded the t-table
(1.861), signifying statistical significance. This
finding indicates that Authentic Leadership has a
notable impact on Talent Development in IT SMEs in
Amman, Jordan. The correlation table exhibited a
positive correlation between Authentic Leadership
and Talent Development (R=.732). Moreover,
Authentic Leadership contributes to Talent
Development by 53.5%, as indicated by the
associated percentage. The B value of (.471) suggests
that a one-unit increase in Authentic Leadership
results in a (.471) increase in Talent Development.
12 Recommendation
Based on the results, this research recommends the
following:
1. Enhancing employee commitment strategies,
conducting employee surveys, implementing
feedback mechanisms, and creating customized
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engagement programs can help enhance
commitment levels.
2. Strengthen talent development by implementing
targeted training programs, mentorship
opportunities, and career development plans to
nurture employee skills and capabilities.
3. SMEs should actively encourage leaders to
embody authenticity, transparency, and integrity in
their actions and decision-making processes.
4. Diversify talent development approaches by
diversifying their approaches to cater to different
learning styles and preferences among employees.
Incorporating online learning, mentorship
programs, and skill-building workshops.
5. When hiring, consider assessing candidates not
only for technical skills but also for their
alignment with authentic leadership qualities. This
ensures that new hires contribute positively to the
organization's culture and values.
12.1 Future Studies
This research recommends future studies to study the
impact of new leadership styles and their impact on
employee Commitment and Talent Development
specifically in the IT sector and SMEs and start-up
companies.
Declaration of Generative AI and AI-assisted
technologies in the writing process:
During the preparation of this work the author used
QuillBot PREMIUM/ Paraphrasing Tool in order to
improve the text. After using this tool/service, the
author reviewed and edited the content as needed and
take full responsibility for the content of the
publication.
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DOI: 10.37394/23207.2024.21.155
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E-ISSN: 2224-2899
1908
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Hazem Khaled Shehadeh
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1909
Volume 21, 2024
APPENDIX
Table 1. Statistical Criterion for Interpreting Arithmetic Mean of the Study’s Variables
Level
Means
Description
Low
1 - 2.33
Most of the respondents do not accept the statement
Medium
2.34 - 3.66
The respondents have different opinions
High
3.67 - 5
Most of the respondents accept the statement
Table 2. Descriptive Statistics
N
Mean
Std. Deviation
Level
174
3.78
.972
High
174
3.68
1.23
High
174
3.81
.697
High
174
Table 3. Reliability Test
Variables
# of Items
Cronbach's Alpha
Authentic Leadership
15
.926
Employee Commitment
10
.951
Talent Development
10
.784
Table 4. Correlation
Authentic
Leadership
Employee
Commitment
Talent Development
Authentic Leadership
1
Employee Commitment
.531**
1
Talent Development
.616**
.570**
1
**. Correlation is significant at 0.01.
Table 5. Result of the first hypothesis
Independent Variable
R
R2
R2 Adjust
B
Independent Variable
t- table
t-calculated
Sig
Authentic Leadership
.821
.674
.671
.656
Employee Commitment
1.861
7.897
.000
Table 6. Result of the first hypothesis
Independent
Variable
R
R2
R2 Adjust
B
Independent
Variable
t- table
t-calculated
Sig
Authentic
Leadership
.732
.535
.530
.471
Talent
Development
1.861
6.453
.000
Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy):
This research has only one author
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
This research was funded by the Deanship of
Scientific Research at Zarqa University, Jordan
Conflict of Interest
The authors have no conflicts of interest to declare.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en_
US
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2024.21.155
Hazem Khaled Shehadeh
E-ISSN: 2224-2899
1910
Volume 21, 2024