Moderating effect of leadership styles on the relationship between employee engagement and performance excellence in the telecom sector of Abu Dhabi

Abstract

Aim: The article investigated how employee engagement impacts performance excellence within Abu Dhabi's telecom sector, along with the moderating role of leadership styles.

Method/Design: Quantitative research was conducted to analyse how employee engagement affects performance excellence within the telecom sector of Abu Dhabi. The data collection process involved survey administration to 384 individuals from the telecom sector. Employee engagement, along with leader styles (transformational, transactional, and laissez-faire) and performance excellence, were assessment areas within the survey. The research data collection approach included various roles across the telecom sector to secure a diverse set of responses from the representative sample. Structural Equation Modelling (SEM) was used to analyse the data using the SmartPLS software.

Findings: Research showed employee engagement has a positive impact on performance excellence through a significant path coefficient value of (β = 0.398; p < 0.001). There was a marginal positive effect of transformational leadership on this relationship, as indicated by the (β = 0.118; p = 0.061) path coefficient, although the findings were significant at 10%. The moderating role of transactional leadership showed an insignificant effect  (β = 0.073; p = 0.229), indicating a minimal, non-significant moderation. Laissez-faire leadership had a negative moderating effect with a path coefficient of (β = -0.097; p = 0.074), which is statistically significant at the 10% level, suggesting it weakens the relationship between engagement and performance excellence.

Originality/Novelty: This study is novel in its analysis of how transformational, transactional, and laissez-faire leadership styles moderate the relationship between employee engagement and performance excellence in the Abu Dhabi telecom sector. It contributes new insights to the literature by examining these moderating effects, offering practical implications for improving employee performance through effective leadership strategies in the industry.