How and when does transformational leadership enhance normative commitment?

Purpose Employees with high normative commitment have an enhanced sense of belongingness, responsibility and obligation to their organization. The purpose of this study is to develop and analyse an integrable model of psychological capital as a crucial mechanism describing how transformational leadership is linked with normative commitment. It is offered that this mediation linkage is conditional on group potency, such that it will be higher for employees with more potency. Design/methodology/approach The study adopted online survey methods using cross-sectional participants ( N = 321) from healthcare organizations in India. The hypotheses were tested employing AMOS-26, SPSS-28, Jamovi and Hayes Process macro for conditional process analysis. Findings Psychological capital mediated the association between transformational leadership and normative commitment. This mechanism was conditional upon group potency, so moderation influence was elevated for higher group potency. Research limitations/implications The study employed cross-sectional participants from a single country and an online survey. Therefore, results should be considered with caution. Practical implications Human resource management practitioners should formulate organizational policies to enhance transformational leadership behaviours in leaders and group potency through workshops and training activities to achieve higher psychological capital and normative commitment. Originality/value This study ascertains the conditional role of group potency in associations of transformational leadership, positive psychological capital and normative commitment. Furthermore, the study emphasizes educating leaders with a transformational leadership style, as they have crucial responsibility in guiding the employees in the organization.