Abstract

This study developed and tested a group-level model involving empowering leadership, psychological contract fulfillment, knowledge exchange, and service performance. In 28 Taiwan's tourism hotels, data stem from 56 hotel departments and comprise 258 employees was used to test the research hypotheses through structural equation model. We found that, as anticipated, empowering leadership was positively related to psychological contract fulfillment and knowledge exchange; psychological contract fulfillment was positively related to knowledge exchange and service performance; and knowledge exchange was positively related to service performance. This study highlighted that psychological contract fulfillment partially mediated the relationship between empowering leadership and knowledge exchange; knowledge exchange fully mediated the relationship between psychological contract fulfillment and service performance. Theoretical and practice implications, limitations, and suggestions for future were presented.

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