We examined the underlying processes through which transformational and active transactional leadership affects followers’ organizational identification in a survey study. Using a sample of managers across different industries, we found that followers’ psychological empowerment, including competence, impact, meaning, and self-determination, partially mediated the effect of transformational leadership and active transactional leadership on followers’ organizational identification. Furthermore, transformational leadership explained variance in followers’ organizational identification and psychological empowerment above and beyond active transactional leadership. These findings provide additional support for transformational leadership theory by demonstrating a motivational mechanism through which followers identify with their organizations. Theoretical contributions and practical implications are discussed.
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