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Purpose

The purpose of this study is to empirically test the mediating effect of psychological empowerment in the relationship between transformational leadership and two employee outcomes: organizational citizenship behavior and turnover intention.

Design/methodology/approach

The data were collected from 316 employees working in the textile industry to empirically test the proposed model.

Findings

The findings of this study indicate that psychological empowerment mediates the relationship between transformational leadership and both employee outcomes of organizational citizenship behavior and turnover intention.

Research limitations/implications

This study suggests that organizations aiming to minimize turnover intention among employees should develop a transformational leadership style at the managerial level to enhance psychological empowerment among employees, which, in turn, will also improve organizational citizenship behavior.

Originality/value

This study proposes and tests the indirect effect of transformational leadership on organizational citizenship behavior and turnover intention via psychological empowerment.

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