Investigating the effect of authentic leadership and employees' psychological capital on work engagement: evidence from Indonesia

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Risma Niswaty, Hillman Wirawan, Haedar Akib, M. Said Saggaf, Dahyar Daraba

2021 Heliyon Vol. 7 Issue 5 Article Cited by 39 Quartile

Abstract

This study aims at investigating the positive effect of Authentic Leadership on Work Engagement and the mediating role of Psychological Capital (PsyCap). This study employed the Jobs Demands Resource (JD-R) model theory to explain the contribution of Authentic Leadership and PsyCap on Work Engagement. Also, the direct effect of Authentic Leadership on employees' PsyCap was examined. This study randomly selected participants from 1,120 employees in one of the largest public service offices in Indonesia. 192 employees (male = 120 or 62.5%) fully participated in a three-wave data collection. By using a Structural Equation Modeling (SEM) technique, this study confirmed that the proposed theoretical model (χ2/df = 2, p <.05, RMSEA =.07, SRMR =.07, CFI =.95) showed a better fit than the alternative model (χ2/df = 3, p <.05, RMSEA =.09, SRMR =.09, CFI =.85). The results also confirmed that Authentic Leadership and PsyCap directly predicted Work Engagement. Furthermore, the indirect effect of Authentic Leadership on Work Engagement was positively mediated by employees' PsyCap. Authentic Leadership in Indonesian public organizations may provide a tremendous impact on employees' PsyCap and Work Engagement. This study has provided new insight into the application of the JD-R model in Indonesian public organizations. Discussion, implications, limitations, and future research directions are included. © 2021 The Author(s)

Affiliations

The Department of Administrative Sciences, Faculty of Social Sciences, Universitas Negeri Makassar, Makassar, Sulawesi Selatan, Indonesia; The Department of Psychology, Faculty of Medicine, Universitas Hasanuddin, Makassar, Sulawesi Selatan, Indonesia; School of Psychology, Faculty of Health, Deakin University, Geelong, Victoria, Australia; The Department of Public Administration, Universitas Islam Makassar, Makassar, Indonesia; The Economic Development and Community Empowerment Study Program, Faculty of Government Politics, Institut Pemerintahan Dalam Negeri (IPDN), Jatinangor, Indonesia