Exploring Organizational Climate and Psychological Contract Fulfillment Through Transactional Leadership: The Perspectives from Dubai Luxury Hotels

Turnover is a major concern for hotel and hospitality industry on a global scale. This research focuses on Dubai 5-star hotels in terms of transactional leadership and how employees perceive its influence on climate and contract fulfillment. This research combines the premises of social exchange, organizational support, and psychological contract, and organizational climate theories to support the development of hypotheses. A total of 24 employee interviews from two 5-star hotels in Dubai were gathered using semi-structured interviews. The research used inductive qualitative approach via thematic network analysis using QSR NVivo software (version 14). Transactional leadership can stabilize the execution of services by clarifying roles, adequate monitoring, and contingent exchanges in the luxury hotel setting. The thematic qualitative evidence demonstrates that organizational climate is an immediate interpretive medium, while psychological contract fulfillment is an emergent factor that is formed through repetitive interactions between employees and leadership. The results provide an in-depth understanding of these dynamics in the luxury hotel context, which can be beneficial for both scholars and practitioners alike.