The Roles of Relational Leadership and Employee Satisfaction in the Linkage Between Social Capital and Employee Turnover: A Moderated-Mediation Analysis

Abstract

Contrary to the prevailing assumption that social capital inherently fosters job satisfaction within work environments, this study posits that the formation of social groups and interpersonal ties may, in fact, lead to workplace isolation for employees whose belief systems and values diverge from those of dominant social groups. This isolation creates a hostile and unaccommodating environment which dampens work spirit, heightens emotional and psychological exhaustion, and engenders high levels of turnover intentions among workers. In addressing this challenge, the study proposes relational leadership as a crucial management approach that creates a conducive environments where open communication, trust, and collaboration can flourish. The study tests these assumptions on 153 responses from employees working within public and private legal firms in sub-Saharan Africa–Ghana drawing on the tenets of the social capital theory and the theory of reasoned action. The data were analyzed using OLS regression in SPSS and found that social capital positively influences employee satisfaction. Additionally, relational leadership is found not to condition the relationship between social capital and employee satisfaction. Interestingly, employee satisfaction is found to fully mediate the social capital–employee turnover intention relationship. Theoretical and managerial implications of the study are presented in the latter section of the document, as well as avenues for future research.