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Perceived Organisational Prestige and Employee Engagement: The Mediating Role of Psychological Capital

In: Proceedings of the 11th International Conference on Business, Accounting, Finance and Economics (BAFE 2023)

Author

Listed:
  • Britney Sue Fun Bong

    (Universiti Tunku Abdul Rahman, Faculty of Business and Finance)

  • Chi Hau Tan

    (Universiti Tunku Abdul Rahman, Faculty of Business and Finance)

  • Soo Ting T’ng

    (Universiti Tunku Abdul Rahman, Faculty of Business and Finance)

Abstract

In a constantly evolving professional landscape, academic institutions face the looming threat of ‘The Great Resignation’. This threat presents a pressing concern where it leads to disengagement among employees. Subsequently, recognizing the pivotal role of academics in higher-level education, the study examines the relationship between perceived organisational prestige and employee engagement while investigating the mediating role of psychological capital among academics in Malaysian private universities, grounded by the broaden and build theory. A total of 217 academics from selected Malaysian private universities participated in an online questionnaire survey. PLS-SEM was utilized to test the hypotheses. Results reveal that perceived organisational prestige positively predicted psychological capital. Both perceived organisational prestige and psychological capital significantly influence employee engagement. Furthermore, psychological capital acts as a pivotal mediator between perceived organisational prestige and employee engagement. Consequently, these findings highlight the role of psychological capital in shaping an employee’s coping mechanism towards the sociopsychological stress factors, offering valuable insights into the fostering effect of psychological capital as a resource in influencing diverse facets of organisational behaviours. The outcome also highlights the potential for interdisciplinary studies to improve the work environment’s quality and employee welfare.

Suggested Citation

  • Britney Sue Fun Bong & Chi Hau Tan & Soo Ting T’ng, 2023. "Perceived Organisational Prestige and Employee Engagement: The Mediating Role of Psychological Capital," Advances in Economics, Business and Management Research, in: Yuen Onn Choong & Fanyu Chen & Keng Soon William Choo & Voon Hsien Lee & Chooi Yi Wei (ed.), Proceedings of the 11th International Conference on Business, Accounting, Finance and Economics (BAFE 2023), pages 280-294, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-342-9_20
    DOI: 10.2991/978-94-6463-342-9_20
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