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Participative Leadership and Employee Job Satisfaction: The Mediating Effects of Psychological Empowerment and Work Engagement

Author

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  • Fatoki Olawale

    (University of Limpopo, Department of Business Management, Sovenga, SOUTH AFRICA)

Abstract

The study examines the relationship between participative leadership (PAL) and employee job satisfaction in small, medium and micro enterprises (SMMEs). In addition, the study investigates whether psychological empowerment and work engagement can mediate the relationship between PAL and job satisfaction. The quantitative research design is adopted for the study and the cross-sectional survey method is used for data collection. The hypotheses of the study are tested using the partial least square structural equation modelling (PLS SEM). The results of the empirical study indicate that PAL is positively related to job satisfaction. The mediating effects of psychological empowerment and work engagement are significant. Theoretically, the study develops a unique model that shows that both psychological empowerment and work engagement are mechanisms through which PAL can affect job satisfaction. Practically, the study recommends that owners/managers of small firms should attend training on leadership.

Suggested Citation

  • Fatoki Olawale, 2023. "Participative Leadership and Employee Job Satisfaction: The Mediating Effects of Psychological Empowerment and Work Engagement," Foundations of Management, Sciendo, vol. 15(1), pages 161-176, January.
    • Handle: RePEc:vrs:founma:v:15:y:2023:i:1:p:161-176:n:2
    DOI: 10.2478/fman-2023-0012
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    References listed on IDEAS

    as
    1. Aydogmus, Ceren & Metin Camgoz, Selin & Ergeneli, Azize & Tayfur Ekmekci, Ozge, 2018. "Perceptions of transformational leadership and job satisfaction: The roles of personality traits and psychological empowerment §," Journal of Management & Organization, Cambridge University Press, vol. 24(1), pages 81-107, January.
    2. Wilmar Schaufeli & Marisa Salanova & Vicente González-romá & Arnold Bakker, 2002. "The Measurement of Engagement and Burnout: A Two Sample Confirmatory Factor Analytic Approach," Journal of Happiness Studies, Springer, vol. 3(1), pages 71-92, March.
    3. Misbah Hayat Bhatti & Yanbin Ju & Umair Akram & Muhammad Hasnat Bhatti & Zubair Akram & Muhammad Bilal, 2019. "Impact of Participative Leadership on Organizational Citizenship Behavior: Mediating Role of Trust and Moderating Role of Continuance Commitment: Evidence from the Pakistan Hotel Industry," Sustainability, MDPI, vol. 11(4), pages 1-21, February.
    4. Davidson Mghanga Mwaisaka & George K'Aol & Caren Ouma, 2019. "Influence of participative and achievement oriented leadership styles on employee job satisfaction in commercial banks in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(5), pages 42-53, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    participative leadership; psychological empowerment; work engagement employee job satisfaction; small; medium and micro enterprises;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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