An analysis of relationships among GNH in corporation, psychological capital and employee performance

Abstract

This study analyses the relationships among “GNH in corporation”, employees’ psychological capital and employees’ performance within the business corporations of Bhutan. Since no prior studies have been conducted to assess the connections among the variables of GNH in corporation (as independent variable), employee psychological capital (as mediator) and the employee performance (as dependent variable), the objective of the research was to bridge this knowledge gap. The data were collected from 511 full-time employees of Druk Holding and Investments Ltd (DHIL) and its six owned companies. The test result indicates that GNH in corporation determines both employees’ psychological capital and employee performance. Most importantly, the employee psychological capital is found to fully mediate the influence of GNH in corporation on employee performance. This was ascertained based on mediation analysis using bootstrapping technique. The research framework was developed after synthesizing existing relevant theories and identifying appropriate procedures and methods; this research thus extends the current literature theoretically and methodologically. Also, the specific findings shall have practical implications, especially for managers and leaders of business corporations.