Retention in the IT industry: exploring the mediating role of knowledge-sharing in the relationship between authentic leadership style and employee turnover

Abstract

Purpose – This study investigates the influence of authentic leadership on employee turnover intentions within the IT sector and focuses specifically on the mediating role of knowledge-sharing. The research addresses the growing need for leadership practices that enhance retention in the dynamic IT industry of Southeast Europe, particularly in Bosnia, Croatia, Serbia and Montenegro. Design/methodology/approach – We employed a quantitative research design utilizing an online survey to gather data from IT professionals across the selected countries. We measured authentic leadership, knowledge sharing, and turnover intentions using a five-point Likert scale. We conducted data analysis using structural equation modeling (SEM), with both confirmatory factor analysis (CFA) and reliability assessments (Cronbach’s alpha). We evaluated key model fit indices, i.e. χ 2 /df, RMSEA, GFI and CFI, to ensure robustness despite a p-value anomaly. Findings – The results reveal that authentic leadership significantly reduces employee turnover by promoting knowledge-sharing within organizations. Although the direct relationship between knowledge-sharing and turnover was not statistically significant, authentic leadership emerged as a critical factor influencing retention. The SEM analysis confirmed the model’s validity with adequate fit indices, highlighting the relevance of leadership practices in reducing turnover in the IT sector. Research limitations/implications – The study encourages IT organizations to integrate authentic leadership practices to improve retention rates. Leaders who exhibit transparency, relational integrity and balanced decision-making foster trust and knowledge-sharing among employees, which in turn supports organizational stability. Policymakers and HR practitioners should develop programs that promote authentic leadership, emphasizing leadership development tailored to the needs of the IT workforce in emerging economies. Originality/value – This study contributes to the growing body of literature on leadership and employee retention by focusing on authentic leadership to mitigate turnover. It offers practical insights relevant to the IT sector, addressing a research gap by providing evidence from Southeast Europe. By examining how leadership influences knowledge-sharing and employee retention, the study bridges the gap between theory and practice, offering actionable recommendations for IT managers and policymakers.