Servant leadership and job satisfaction: Mediating role of trust and psychological capacity - the case of enterprises in the state-owned sector

Abstract

Servant leadership is a leadership style that focuses on enhancing the capabilities and well-being of employees to achieve the prosperity and service goals of the organization and community. State-owned enterprises have significant differences compared to private enterprises and foreign-invested enterprises because their main goal is not always for profit but to serve the public interest and national interests. This empirical study focuses on exploring the impact of servant leadership style on the employee’s job satisfaction in state-owned enterprises and, simultaneously, determining the mediating role of trust and the psychological capacity of employees. This specific research is implemented in state-owned enterprises, with diverse types such as: 100% state-owned enterprises; State joint stock companies, and Joint venture enterprises between the state and other partners. The survey was conducted with employees of these state-owned enterprises, and 294 valid questionnaires were processed. The survey data were analyzed using SPSS and AMOS statistical software. Research has concluded that: (1) servant leadership style directly impacts the job satisfaction of employees - This result implies that when operating a state-owned business in a socialist-oriented economy, employees will be more satisfied with their work if managers lead them with servant leadership style; (2) The study has confirmed that Trust and Psychological capacity are two statistically significant mediating factors in the relationship between servant leadership and employee satisfaction. This result shows that in the context of state-owned enterprises, leaders with a servant leadership style can improve the psychological capacity of workers, making them more confident and optimistic. Therefore, employess will be able to overcome crises at work more efficiently and thanks to that, they are more satisfied with their work.