Intervening Role of ‘GNH in Corporation’ on Leadership and Employee Performance in Bhutanese Companies

Objective: The intent of the study is to examine the intervening role of 'GNH (Gross National Happiness) in Corporation' on leadership and employee performance in the context of Bhutanese Corporations. Theoretical Framework: Developed through the synthesis of existing theories and analysis of research gap, the research model is unique which extends the current literatures. The research is designed as a mediation analysis fraemwork composed of leadership, GNH in Corporation and employee performance as independent, intermediary and outcome variables respectively. Method: Data were collected from 511 regular employees of Druk Holding and Investments Ltd (DHI) and its six owned corporations; these companies are the major contributor to the national economy. The relationships are explored through Structural Equation Modelling. Results and Discussion: The mediation analysis based on bootstrapping technique shows that GNH in Corporation partially mediate the effect of leadership on employee performance; and the Leadership Index computed using Alkaire-Foster method stands at 0.858 indicating no severe issue. Research Implications: This research contributes theoretically and methodologically. And Some specific findings from this study have practical implications for administrators, managers and leaders of Bhutanese corporations. Originality/Value: No prior studies have been conducted to test if the GNH is predicted by and whether it stimulates the variables of interest; this knowledge gap forms the basis for this research. The findings from this study bears originality and authenticity.