Leadership and employee behaviour: the mediating and moderating role of cognitive trust and organizational culture

Purpose This study aims to examine the mediating and moderating roles of cognitive trust and organizational culture in the relationship between leadership and employee task performance and turnover intention. Design/methodology/approach Data were collected from 543 employees through a survey from the Islamic banking sector in Pakistan. Structural equation modelling (partial least squares) was used to estimate the effect. Findings The results demonstrate that cognitive trust plays a positive and significant mediating role between leadership and task performance ( O = 0.064, T = 2.005, p = 0.028). Moreover, there is a negative relationship between leadership and employee turnover intention with the mediation of cognitive trust ( O = −0.061, T = 1.976, p = 0.021). In addition, organizational culture plays a significant moderating role between cognitive trust and employee task performance ( O = 0.014, T = 2.141, p = 0.038). Research limitations/implications The results emphasize the critical role of organizational culture and cognitive trust in amplifying or reducing the impact of leadership on employee attitudes. This offers managers and leaders practical insights to boost employee performance and reduce turnover. Originality/value To the best of the authors’ knowledge, this study is unique in that it seeks to advance understanding of social exchange theory management by examining the moderated-mediation frameworks in the interaction between leadership and specific aspects of employee attitudes.