Empowering leadership ripple effect: improving employee engagement, performance and knowledge sharing through relational energy and autonomy

• Published in: European business review Vol. 36; no. 3; pp. 392 - 409
• Main Authors: Burhan, Qurat-ul-Ain, Khan, Muhammad Asif
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Publishing Limited 30-04-2024; Emerald Group Publishing Limited
• Subjects: Behavior; Cognition & reasoning; Collaboration; Decision making; Employee involvement; Empowerment; Energy; Influence; Knowledge sharing; Leadership; Self-efficacy; Small & medium sized enterprises-SME; Karachi Pakistan; Pakistan; Task performance; Knowledge sharing; Autonomy; Empowering leadership; Relational energy; Employee engagement
• ISSN: 0955-534X; 1758-7107; 0955-534X
• DOI: 10.1108/EBR-08-2023-0239

Purpose
The present study aims to elucidate the mediating role of relational energy between empowering leadership and its attitudinal (employee engagement), behavioral (knowledge sharing) and performance (task) related outcomes, respectively, and the moderating role of autonomy between empowering leadership and relational energy, using the social cognitive theory.
Design/methodology/approach
The study used surveys in the small and medium-sized enterprises sector and collected time-lagged data to address common method variance and reveal causal relationships. AMOS was used to conduct hypothesis testing.
Findings
The results suggest that empowering leaders have a positive impact on outcomes such as employee engagement, knowledge sharing and task performance, and this impact is mediated by relational energy. Autonomy moderates the empowering leaders and relational energy relationship, strengthening it when autonomy is high.
Practical implications
Organizations should focus on leadership development programs depending on the need. Empowering leadership should be promoted to get positive attitudinal and behavioral outcomes in terms of employees. Empowering the employee in terms of decision-making helps motivate employees to perform better.
Originality/value
The study contributes to the empowering leadership literature by associating social cognitive theory. Empowering leaders has the potential to increase employee engagement, knowledge sharing and task performance.