The boundary conditions of corporate values on the link between leadership behaviour and employee performance through psychological well-being

This study examines whether corporate values (CV) moderate the relationship between leadership behaviour (LB) and employee performance (EP) through employees’ psychological wellbeing (PWB). Hayes’ conditional process model was the basis for the statistical enquiry; the result of the analysis reveals that corporate values do not moderate the link between the predictor [LB] and the mediator [PWB], while the ability to strengthen or weaken the influence of LB on EP is conditional on average or higher levels of corporate values. At a low value of CV, the moderation effect is insignificant. PWB is found to partially mediate the effect of LB on EP. However, contrary to the initial hypothesis, moderated mediation could not be established. The Behavioral theory of leadership, the recognized concepts related to well-being and performance, were used to formulate the research framework. The results are based on survey data from the samples of employees spread across seven government-owned Bhutanese corporations. The findings provide insights for managers to adjust and accentuate leadership behavior for positive outcomes from the subordinates. Leadership development focusing on task orientation may be activated. Additionally, research findings contribute to extending theoretical understanding and discussion. The conditional moderation of corporate values on leadership behavior-employee performance relation reinforces value-congruence and leadership effectiveness for performance outcomes. In particular, this research is a noble endeavor to systematize literature in the Bhutanese context and business management in general.