The Mediating Effect of Employee Happiness on the Relationship between Leadership Styles and Employee Performance

Abstract

This study aims at analysing the relationship between internal marketing (IM) and employee performance (EP), mediated by employee delight (ED). Factor analysis was applied to data collected by questionnaire from 264 employees in the oil and gas industry, Malaysia. The assessments of the measurement and structural models were undertaken using SmartPLS 3.0. The results showed that organisational cultural beliefs, terms and conditions (TC), learning and development and business process (parts of IM constructs) had significant relationships with at least one of the EP constructs, namely in-role and extra-role. ED had a significant relationship with both EP constructs. However, only one IM construct, TC, had a significant relationship with EP when mediated by ED. Using ED as a mediator in the proposed model provides further theoretical contribution to IM. This paper provides the list of IM initiatives that have effects on EP. This helps management to focus their time and investments on the right kinds of efforts.