Abstract
In recent times, moderated mediation analysis has been proven to be one of the useful techniques in providing powerful analysis in many research areas such as social science, marketing, statistics, health science and others. Based on the usefulness of this technique, the current study adopted moderated mediation analysis approach to examine the impact of servant leadership on follower outcomes. This study examined the impact of servant leadership, an employee and community focused leadership style, on followers’ PsyCap and in-role performance. Data from 194 employees were collected from several local and international banks operating in Pakistan. In order to test for the validity of the measures that were employed in this study, confirmatory factor analysis was conducted. The hierarchical multiple regression analysis was used to test the hypothesized moderated mediation model. Based on social exchange theory, the results showed that followers PsyCap served as the psychological mediating mechanism through which manager’s servant leadership led to followers increased in-role performance. Furthermore, the results also supported followers’ work regulatory focus (promotion and prevention focus) as the dispositional boundary condition of this mediating effect wherein, the promotion focus has a significant effect on the indirect effect of PsyCap on servant leadership and in-role job performance relationship. However, there is an insignificant moderating effect of prevention focus on the indirect effect of PsyCap on servant leadership and in-role job performance relationship. This study contributes to both the servant leadership and PsyCap literature by addressing questions with useful theoretical and managerial implications.
Keywords: work regulatory focus, servant leadership, psychological capital (PsyCap), in-role performance
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