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The effects of leader-member exchange on employee performance at commercial banks in Ho Chi Minh City: The role of job satisfaction and work engagement as mediating variables

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  • Nam Dinh Khuc

    (Nong Lam University, Ho Chi Minh City, Vietnam)

Abstract

Our paper aimed to identify how leader-member exchange directly and indirectly impacts the performance of staff in commercial banks located in Ho Chi Minh City, through mediating variables: work engagement and job satisfaction. We applied a convenient method of collecting direct data. SmartPLS 3.2.9 was used to analyze Partial Least Squares Structural Equation Modeling (PLS-SEM) to test our model’s hypotheses with official samples being at 567. The results indicated that the total positive and significant effects on the performance of staff working at commercial banks were sorted in ascending order: work engagement, job satisfaction, and leader-member exchange. The effects of leader-member exchange on staff working at commercial banks’ work engagement and job satisfaction were directly significant and positive. Moreover, staff working at commercial banks’ job satisfaction and work engagement played a positive and mediating role in the correlation between leader-member exchange and employee performance. Finally, we have practical implications for commercial banks to improve employee performance.

Suggested Citation

  • Nam Dinh Khuc, 2024. "The effects of leader-member exchange on employee performance at commercial banks in Ho Chi Minh City: The role of job satisfaction and work engagement as mediating variables," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 14(4), pages 129-139.
    • Handle: RePEc:bjw:econen:v:14:y:2024:i:4:p:129-139
    DOI: 10.46223/HCMCOUJS.econ.en.14.4.2853.2024
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    References listed on IDEAS

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    1. Adailson Soares Santos & Mário Teixeira Reis Neto & Ernst Verwaal, 2018. "Does cultural capital matter for individual job performance? A large-scale survey of the impact of cultural, social and psychological capital on individual performance in Brazil," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 67(8), pages 1352-1370, November.
    2. Rowan Mulligan & José Ramos & Pilar Martín & Ana Zornoza, 2021. "Inspiriting Innovation: The Effects of Leader-Member Exchange (LMX) on Innovative Behavior as Mediated by Mindfulness and Work Engagement," Sustainability, MDPI, vol. 13(10), pages 1-18, May.
    3. Sana Mumtaz & Chris Rowley, 2020. "The relationship between leader–member exchange and employee outcomes: review of past themes and future potential," Management Review Quarterly, Springer, vol. 70(1), pages 165-189, February.
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    More about this item

    Keywords

    employee performance; job satisfaction; leader-member exchange; work engagement;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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