Participative Leadership and Employee Job Satisfaction: The Mediating Effects of Psychological Empowerment and Work Engagement

Abstract The study examines the relationship between participative leadership (PAL) and employee job satisfaction in small, medium and micro enterprises (SMMEs). In addition, the study investigates whether psychological empowerment and work engagement can mediate the relationship between PAL and job satisfaction. The quantitative research design is adopted for the study and the cross-sectional survey method is used for data collection. The hypotheses of the study are tested using the partial least square structural equation modelling (PLS SEM). The results of the empirical study indicate that PAL is positively related to job satisfaction. The mediating effects of psychological empowerment and work engagement are significant. Theoretically, the study develops a unique model that shows that both psychological empowerment and work engagement are mechanisms through which PAL can affect job satisfaction. Practically, the study recommends that owners/managers of small firms should attend training on leadership.