Leadership Effectiveness and Organizational Citizenship Behavior
Mediating Effect of Job Satisfaction among Insurance Employees in Nepal
DOI:
https://doi.org/10.32674/hzadgw45Keywords:
Employment happiness, influential, leader, prosocial behavior, service firmsAbstract
Purpose. Grounded in the social exchange theory, this study examines the influence of leadership effectiveness (LE) and organizational citizenship behavior (OCB) among employees of Nepalese insurance companies (i.e., both life and non-life), with particular emphasis on the mediating role of job satisfaction (JS).
Design/methodology/approach: A non-experimental design was employed, and the cross-sectional data were collected among 218 employees of life and non-life insurance companies operating in Kathmandu Valley. The data analysis was conducted using covariance-based structural equation modeling (CB-SEM).
Findings: The findings indicated that LE significantly enhanced JS but did not directly influence OCB. Moreover, JS exerted a significant positive effect on OCB and significantly mediated the relationship between LE and OCB.
Conclusion: Leaders should first satisfy insurance employees, who help employees go beyond their job responsibilities. It suggests that employees show OCB voluntarily, not because leaders direct them. So, unless employees feel valued and satisfied, they do not go beyond job duties.
Implications: The findings emphasized that policymakers and human resource professionals should develop evaluation systems to appraise leader effectiveness that assess the extent to which leaders support their employees' well-being, in addition to evaluating the extent to which employees meet their job requirements.
Originality/value: This study extends the LE-OCB literature to the underexplored Nepalese insurance sector, clarifying JS as the key mediating mechanism.
JEL Classification: G22, J28, M12
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