Linking LMX and happiness at work through symbolic interaction theory – The role of self-esteem and organizational embeddedness

PurposeDrawing on the symbolic interaction theory, this research examines leader–member exchange (LMX) and employee’s happiness at work (HAW) with mediation of self-esteem (SE) and moderation of organizational embeddedness (OE).Design/methodology/approachThe study uses data collected from a sample of 246 employees working in fast moving consumer goods companies (FMCGs) and applied SmartPLS to analyze the proposed model.FindingsFindings reveal that LMX predicts HAW. Whereas, the follower’s SE fully transmitted the effect of LMX on employee’s HAW. Moreover, OE moderated the relationship between LMX and HAW.Practical implicationsLeaders should consider quality LMX interactions with their employees in prevailing global crises. LMX can improve the relationship with team members and boost their SE resulting in HAW. Furthermore, organizations should promote such practices which may enhance their employees' OE for enhanced workplace happiness.Originality/valueThe study is among the very few works which apply symbolic interaction as an overarching framework to explain the employees' HAW.