Impact of leadership empowerment dynamics on work engagement: a mediation model in Nepalese commercial banks

Purpose The purpose of this study is to examine the impact of leadership empowerment dynamics on work engagement. Using a mediation mechanism, this study examines the mediating role of perceived organizational support between leadership empowerment dynamics and work engagement. Design/methodology/approach We employed a cross-sectional research design under a quantitative approach and positivist epistemology. The data were collected from 416 bank employees, comprising 3 private, 2 joint ventures and 2 public limited banks under a 95% confidence level and a 5% margin of error. The data supported the hypothesized relationships. Partial least squares structural equation modeling (Smart-PLS) was used to evaluate the proposed model and hypotheses. Construct reliability and validity were established through the assessment of convergent and discriminant validity. Findings The results reveal that leadership empowerment and psychological empowerment are positively associated with work engagement. Additionally, the results show that perceived organizational support partially mediates the relationships of leadership empowerment and psychological empowerment with work engagement. Originality/value An attempt has been made in the academic literature to examine the mediating role of perceived organizational support in the relationship between leadership empowerment dynamics and work engagement. Furthermore, there is a lack of empirical research analyzing the relationships between various organizational characteristics and work engagement. These findings can therefore be strategically used by bank managers and policymakers to create policies that encourage greater levels of work engagement.