Impact of Leadership Behavior on Psychological Capital (Evidence from Kingdom of Saudi Arabia)

The aim of this research is to identify the impact of leadership behavior (transformational and ethical leadership) on psychological capital at the Eastern Chamber of Commerce in the Kingdom of Saudi Arabia. A total of 159 employees participated in a survey conducted using a simple random sampling method. The analysis is grounded in the results from the questionnaire distributed to a representative sample of employees within the organization. The researchers proposed that leadership behaviors (transformational and ethical leadership) significantly influence psychological capital at the Eastern Chamber of Commerce in the Kingdom of Saudi Arabia. The findings confirmed that this hypothesis was upheld. Moreover, results indicated that there are no significant differences with regard to the impact of leadership behavior with its dimensions in question on psychological capital at the organization in question due to the demographics (gender, age, qualification, years of experience and position).