The hospitality industry presents a uniquely demanding work environment, characterized by high levels of stress, emotional labor, and continuous guest interaction, making employee workplace well-being (WPW) a crucial factor for sustainable organizational success. Leadership practices are central to fostering WPW, with servant leadership (SL) emerging as a people-centered approach that emphasizes employee growth, empowerment, and ethical conduct. While previous research has linked SL to various positive employee outcomes, the mechanisms through which SL influences WPW are still underexplored. This study addresses this gap by examining the mediating role of psychological capital (PsyCap) - comprising hope, optimism, resilience, and self-efficacy - in the relationship between SL and WPW within the hospitality sector. This study employed a cross-sectional research design to explore the relationship between servant leadership (SL) and workplace well-being (WPW), with psychological capital (PsyCap) examined as a mediating variable. Data were collected from 442 frontline employees working in five-star hotels located in major cities across Saudi Arabia. Validated measurement instruments were used to assess perceptions of SL, PsyCap, and WPW. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLSSEM) to test both direct and indirect relationships among the variables. The results revealed that SL has a significant positive effect on WPW, both directly and indirectly. PsyCap was found to partially mediate this relationship, indicating that servant leadership enhances WPW not only through its direct influence but also by fostering key psychological resources - hope, resilience, optimism, and self-efficacy - in employees. This mediation highlights PsyCap as a critical psychological mechanism linking leadership behaviors to employee well-being outcomes. Theoretically, the study contributes to the leadership and organizational behavior literature by validating the role of PsyCap within the Conservation of Resources (COR) framework. From a practical standpoint, the findings emphasize the importance for hospitality managers to cultivate servant leadership qualities and invest in developing employees' psychological capital. Doing so can significantly improve employee well-being, strengthen organizational resilience, and enhance service performance in demanding hospitality environments.
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