Intervening Effect of Gross National Happiness in Corporation on the Relationship between Leadership and Employee Performance in Bhutanese Corporations

Abstract

This study examines the intervening role of Gross National Happiness (GNH) in Corporation and employee’s Psychological Capital on Leadership and Employee Performance in Bhutanese Corporations. Survey data were collected from 511 employees of Druk Holding and Investments Limited (DHIL) and its six owned corporations based on proportionate stratified random sampling. Interview data was also collected simultaneously from the relevant officials of these corporations. The GNH in Corporation and Psychological Capital are tested as parallel mediators, stand-alone intermediaries and as serial mediators through Structural Equation Modelling. Test results reveal that whether as parallel, stand alone or as a sequential, these variables partially mediate the effect of leadership on employee performance. The research conceptual framework was based on the synthesis of existing theories, review of relevant literatures and the identified knowledge gap; and findings from this research extends the current knowledge. Also, some specific findings from this study are relevant for administrators and managers of Bhutanese corporations for their policy decisions.

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