Triad of Employee Performance: Leadership, Organizational Support, and Well-Being

Abstract

This research explores the critical determinants of employee performance in the post-pandemic retail sector, focusing on empowering leadership, perceived organizational support, and employee psychological well-being. The study presents a comprehensive framework that clarifies the interaction between these constructs and their impact on employee performance. The results, obtained from a quantitative analysis using Partial Least Squares Structural Equation Modelling (PLS-SEM), reveal that while empowering leadership does not directly impact employee performance, it significantly influences employee psychological well-being, thereby indirectly affecting employee performance. In addition, perceived organizational support not only indirectly influences employee performance through its positive effect on employee psychological well-being but also has a direct positive impact on employee performance. Thus, both empowering leadership and strong perceived organizational support, are found to enhance employee performance, with employee psychological well-being playing a significant mediating role in these relationships. These findings offer valuable insights for the retail sector to navigate the evolving challenges in a postpandemic world, providing a solid theoretical framework and practical strategies to enhance employee performance.