LMX and employee satisfaction: mediating effect of psychological capital. Issue 3 (2nd May 2017)

• Record Type: Journal Article
• Authors: Liao, Shu-sien; Hu, Da-chian; Chung, Yu-Chun; Chen, Li-Wen
• Is Part Of: Leadership & organization development journal. Volume 38:Issue 3(2017)
• Page Start: 433
• Page End: 449
• Publication Date: 2017-05-02
• Subjects: Psychological capital -- Job satisfaction -- Structural equation model -- Life satisfaction -- Mediating effect -- Leader-member exchange; Organizational change -- Periodicals; Leadership -- Periodicals; 658.4
• DOI: 10.1108/LODJ-12-2015-0275
• Languages: English
• ISSNs: 0143-7739

Abstract

Abstract : Purpose: The purpose of this paper is to investigate the relationship between leader-member exchange (LMX), job satisfaction (JS), life satisfaction (LS), and psychological capital (PC) for employee relation management. Design/methodology/approach: A total of 319 valid questionnaires were received from employees of financial and electronics manufacturing industries in Taiwan, and they were then analyzed using a structuring equation model with SPSS 12.0 and LISREL 8.8. Findings: Good LMX increases psychological capital. Psychological capital enhances both JS and LS, and psychological capital serves as a full mediator for both JS and LS. A moderating effect of industrial characteristics is found between LMX and LS and between psychological capital and LS. Practical implications: The findings suggest that managers need to focus on leadership style in order to develop employees' life and JS through building psychological capital. Originality/value: This study not only obtained further support for predictions derived from the LMX theory but was also a more extensive analysis of the meaningful relationships between job and LS with a mediating effect of psychological capital on employee relation management.