Transformational Leadership, Retirement Preparation Programs, and Post-Retirement Entrepreneurial Intention: Mediating Role of Self-Efficacy

Abstract

This study investigates the relationship between transformational leadership, organizational retirement preparation programs (RPP/MPP), and post-retirement entrepreneurial intention among pre-retirees in Indonesian corporations. Drawing on Social Cognitive Theory (Bandura, 1986), this study proposes that self-efficacy mediates the pathways from both transformational leadership and RPP participation to entrepreneurial intention. A quantitative cross-sectional survey was administered to 312 employees aged 50–60 years across manufacturing and state-owned enterprises in West Java, Indonesia. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 4.0. Results indicate that transformational leadership (β = 0.31, p < 0.001) and RPP quality (β = 0.27, p < 0.01) positively predict self-efficacy among pre-retirees. Self-efficacy fully mediates the effect of transformational leadership on entrepreneurial intention (β = 0.22, p < 0.001) and partially mediates the RPP–entrepreneurial intention relationship (β = 0.18, p < 0.01). This study extends Social Cognitive Theory to the domain of late-career human resource development and offers practical implications for HR practitioners designing pre-retirement programs with entrepreneurship modules in emerging economy contexts