CEO transformational leadership and organizational outcomes: The mediating role of human-capital-enhancing human resource management

Using a field survey and company data of 170 firms in Singapore, we tested an integrated theoretical model relating CEO transformational leadership (TL), human-capital-enhancing human resource management (HRM), and organizational outcomes, including subjective assessment of organizational performance, absenteeism, and average sales. We found that human-capital-enhancing HRM fully mediates the relationship between CEO transformational leadership and subjective assessment of organizational outcomes and partially mediates the relationship between CEO transformational leadership and absenteeism. We discuss practical and theoretical implications.