Abstract
This study investigates the mediating role of perceived inclusion in the relationship between perceived authentic organizational behavior (AOB) and psychological capital, while examining the moderating influence of leader-member exchange (LMX) on the link between perceived AOB and perceived inclusion. Employing a quantitative, cross-sectional design, data were gathered from employees of Islamic banks across six major cities in Pakistan (N=254). Using structural equation modeling (SEM) in AMOS, we tested a moderated mediation model. Results indicated that perceived AOB positively influenced psychological capital through perceived inclusion, which served as a significant mediator in this relationship. However, the moderating effect of LMX on the AOB-inclusion relationship was not supported. This study addresses a notable gap in the literature by examining antecedents of psychological capital, focusing specifically on AOB, rather than the extensively studied construct of authentic leadership. Grounded in social exchange and LMX theories, this research contributes novel insights by applying a moderated mediation model within the distinct context of Islamic banking in Pakistan, offering implications for understanding organizational behavior and employee well-being in culturally specific work settings.
Published Version
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