The Moderating Role of Job Satisfaction between Leadership Development Interventions and Organisational Performance
Creators
- 1. Putra Business School, Universiti Putra Malaysia Seri Kembangan, Selangor, Malaysia
Description
The need for organisations to improve their performance raises an important question of how to improve it. It is argued that leadership development interventions or “leadership development” could be directed to improved organisational performance. In this context, there is limited evidence on the impact of professional leadership development interventions on organisational performance. Moreover, current literature also does not provide sufficient explanations on the conditions under which a firm can maximise the effect of leadership development interventions on organisational performance. These conditions can be explained by considering the moderating role of individual-level factors such as job satisfaction, which is an urgent research area. This study empirically examines the direct influence of leadership development interventions on organisational performance considering the moderating role of job satisfaction in such relationships. A survey-based method was used to collect data from 385 Saudi service firms’ employees to help validate the hypothesised relationships. By applying the PLS-SEM, this study found that leadership development interventions (i.e., coaching, mentoring, and performance appraisal) directly influence perceived organisational performance. Further, the relationships between coaching, performance appraisal and perceived performance appraisal are moderated (reinforced) by job satisfaction. While job satisfaction does not moderates the relationship between the mentoring and perceived organisational performance.The need for organisations to improve their performance raises an important question of how to improve it. It is argued that leadership development interventions or “leadership development” could be directed to improved organisational performance. In this context, there is limited evidence on the impact of professional leadership development interventions on organisational performance. Moreover, current literature also does not provide sufficient explanations on the conditions under which a firm can maximise the effect of leadership development interventions on organisational performance. These conditions can be explained by considering the moderating role of individual-level factors such as job satisfaction, which is an urgent research area. This study empirically examines the direct influence of leadership development interventions on organisational performance considering the moderating role of job satisfaction in such relationships. A survey-based method was used to collect data from 385 Saudi service firms’ employees to help validate the hypothesised relationships. By applying the PLS-SEM, this study found that leadership development interventions (i.e., coaching, mentoring, and performance appraisal) directly influence perceived organisational performance. Further, the relationships between coaching, performance appraisal and perceived performance appraisal are moderated (reinforced) by job satisfaction. While job satisfaction does not moderates the relationship between the mentoring and perceived organisational performance.
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